Inflame Appliances Ignites Growth with Strong H1 FY26 Performance

Inflame Appliances Limited, a prominent player in the Indian kitchen appliances sector, has reported an exceptional performance for the first half of the financial year 2026 (H1 FY26). The company has achieved its highest-ever half-year results, demonstrating robust growth across key financial metrics. Revenue from operations surged by an impressive 43.5% year-on-year, reaching ₹76.3 crore. This significant top-line expansion was accompanied by even stronger profitability, with EBITDA growing by 64.5% year-on-year to ₹9.04 crore and Net Profit skyrocketing by 333% year-on-year to ₹3.52 crore. This stellar performance underscores the effectiveness of the company's strategic initiatives and its ability to capitalize on the burgeoning demand for kitchen appliances in India.

The strong financial showing was primarily driven by a substantial increase in chimney sales volume, which grew by 27% year-on-year to 1.34 lakh units in H1 FY26. Both the Panchkula and Hyderabad facilities contributed significantly to this volume growth. The company's focus on premiumization also played a crucial role, with a higher share of premium chimneys contributing to revenue expansion and improved average realization. Management noted that the momentum observed in H1 is expected to continue into H2, targeting even better results for the full financial year.

Strategic Expansion and Operational Excellence

Inflame Appliances is strategically expanding its manufacturing footprint and enhancing operational efficiencies to meet the escalating demand. The Hyderabad facility, which commenced production in the latter half of H1 FY24, has rapidly achieved benchmark production and stable supply levels. This facility has seen improving operational efficiencies, leading to a significant reduction in initial costs related to manpower training and setup. It is now well-positioned to drive higher productivity and optimize costs, marking a key turnaround for the company.

In addition to Hyderabad, Inflame is investing ₹10 crore in constructing a new 50,000 sq. ft. facility at Panchkula. This expansion will feature automated assembly lines, adding approximately 15,000 units per month to the chimney capacity and further improving productivity and quality. This new facility is expected to be operational by April 1st, reinforcing the company's manufacturing capabilities in North India. The company's backward integrated business model and near-zero dependence on imports allow it to manufacture high-quality products at competitive prices, a crucial advantage in the Indian market.

Product Diversification and Market Penetration

Inflame Appliances is not just growing its existing product lines but also strategically diversifying its portfolio. While chimneys currently account for 90-95% of its revenue, the company plans to expand its product lineup to include dishwashers, built-in ovens, wine coolers, and other premium kitchen appliances. This diversification aims to reduce the revenue contribution from chimneys to 60-65% by FY2028, creating a more balanced and resilient product mix. The company is already supplying built-in series products like built-in ovens and wine coolers from its Hyderabad plant to premier customers.

The company's ability to localize over 65 chimney models and achieve 90% in-house production has been instrumental in replacing Chinese manufacturers and becoming a preferred OEM/ODM partner for major brands like Hindware, Sunflame, Kaff, Flipkart, Crompton, IFB, Wonderchef, Livpure, V-Guard, and Havells. This focus on local manufacturing aligns with the government's 'Make in India' initiative and provides a competitive edge by reducing reliance on imports, mitigating supply chain risks, and improving cash flows. The upcoming BIS implementation for hobs is also seen as a significant growth opportunity, as it will make BIS certification compulsory for manufacturers, further favoring local players.

Outlook and Investor Confidence

Management is highly confident about the company's future trajectory, providing a revenue growth guidance of 40-50% for FY26 and FY27. Inflame Appliances aims to capture 40% market share in the next five years by strategically expanding its manufacturing facilities across major regions of India. The company's commitment to innovation is evident with plans to launch 2-3 new products, which are currently imported from China, within the next few months. These products are expected to be first-in-India in terms of manufacturing, further solidifying Inflame's position as an innovation leader.

The management's transparent communication, acknowledging past challenges while highlighting corrective actions and future growth drivers, instills confidence. The focus on disciplined capital allocation, operational efficiency, and product diversification positions Inflame Appliances for sustained growth and market leadership in the dynamic Indian kitchen appliances sector. The company is actively exploring export opportunities, with buyer audits completed in Hyderabad, signaling ambitions beyond the domestic market.