Stove Kraft Q1 FY27: Record revenue, stronger margins, and an induction-led surge

Stove Kraft Limited began FY27 with its strongest first-quarter revenue on record. In Q1 FY27, revenue from operations rose to INR 480.6 crore, up 41.3 percent year on year and 15.9 percent quarter on quarter. Profitability rose faster than sales. EBITDA increased to INR 53.8 crore, up 50.9 percent year on year, while profit after tax grew 63.5 percent to INR 17.1 crore.

The quarter matters for two reasons. First, growth was not limited to a single channel. General Trade expanded sharply, Modern Retail accelerated, and the company’s own retail footprint kept scaling. Second, the product mix shifted in a way that helped margins hold up despite supply chain challenges and higher raw material costs. Gross margin expanded 127 basis points year on year, with gross profit rising 46.0 percent to INR 190.4 crore and gross margin improving to 39.6 percent.

The operating picture suggests a company that captured a demand window, executed distribution well, and used scale to improve operating leverage. EBITDA margin moved up to 11.2 percent from 10.5 percent a year ago, while PAT margin improved to 3.5 percent from 3.1 percent.

Growth was broad-based, but the induction spike changed the mix

Stove Kraft’s Q1 FY27 performance was shaped by a sharp spike in the induction cooktop category. The company reported 315.9 percent year-on-year growth in induction cooktops and 100.3 percent quarter-on-quarter growth for the ICT segment. Management linked the surge to a market environment that has remained resilient and materially better than pre-war levels, while also citing a sudden dearth of LPG cylinders that triggered a rapid shift toward electric cooking.

This was not only a one-line headline. The company ran a targeted push under the Gas to Grid initiative, which focused on consumer education about electric cooking and the substitution of gas cooking with induction cooktops and related electric appliances during the LPG shortage period. The intent was to convert a short-term disruption into a durable behavior change, and to use digital and PR channels to shape that transition.

Other categories also contributed. Cookers grew 41.3 percent year on year. Non-stick cookware grew 21.8 percent. Some categories were soft, with small appliances down 2.2 percent and gas cooktops down 6.9 percent. Taken together, the mix shows a portfolio in transition. Traditional cookware continues to grow, while the induction category has become the swing factor that can lift quarterly numbers quickly when demand conditions align.

Brand-wise, the Pigeon franchise remained the core engine. Pigeon sales rose to INR 403.4 crore in Q1 FY27 from INR 270.1 crore in Q1 FY26. The presentation also highlighted Pigeon CAGR of 21.2 percent over the period shown and Others CAGR of 23.6 percent, indicating that the non-Pigeon portfolio is also scaling, though from a smaller base.

Financial summary

The income statement also shows how operating leverage played out. While employee benefits and other expenses rose in absolute terms, EBITDA grew faster than sales. The quarter also benefited from a sizable negative allowance for ECL of INR 4.9 crore compared with an expense of INR 0.8 crore in Q1 FY26.

Distribution momentum: General Trade came back, retail scaled, and e-commerce stayed meaningful

Channel performance in Q1 FY27 reveals a more balanced revenue engine than in periods when online demand dominated. The company reported 56.2 percent year-on-year growth in General Trade, which crossed the 56 percent mark for the first time in the last three years. Modern Retail growth was also strong at 51.6 percent year on year. E-commerce grew 38.5 percent.

The company’s own retail channel remained the standout on growth rate, with 86.3 percent year-on-year growth. Operationally, the store network reached 346 operational stores across 23 states and 160 cities, with 17 new stores added during the quarter. The presentation also notes that 165 stores are under a franchise model.

Retail metrics provide useful texture on execution. The company added 140,482 new customers in the quarter, with 15 percent repeat purchase. It sold 303,586 units. Average sale per store per month stood at INR 4.36 lakh.

In revenue mix terms, the presentation showed channel contribution percentages as follows: General Trade 28.6 percent, Modern Retail 13.0 percent, E-commerce 31.8 percent, Own Retail 8.7 percent, and OEM 15.3 percent. The mix suggests that e-commerce is still the single largest channel, but offline is now the larger combined driver when General Trade, Modern Retail, and own retail are added.

A key operational note was geographic expansion. Stove Kraft expanded into nine new cities during the quarter, strengthening footprint in emerging markets.

Segment comparison

This pattern aligns with the company’s marketing focus. The Gas to Grid campaign did not just advertise a product. It framed electric cooking as a practical replacement in a moment of supply stress, which likely accelerated conversion for induction cooktops.

Working capital and returns: inventory built ahead of the festive season

The sharp top-line jump also came with a working capital trade-off. Net working capital increased to 45 days from 23 days in Q4 FY26. The company explained the move as a planned inventory build-up ahead of the festive season, especially for long lead-time ICT products, to ensure timely demand fulfillment.

Inventory days rose to 158 in Q1 FY27 from 133 in FY26, while receivable days were 28 and payable days were 140. The presentation notes that despite the festive season build-up, inventory days improved to 45 from 69 in Q1 FY26, extending a positive working capital trend for Q1 over the last three years. The document presents multiple working capital figures and labels, but the central message is clear: management is choosing to carry inventory to protect sales during a seasonally important demand period.

Returns improved in the quarter as well. ROCE increased to 13.9 percent in Q1 FY27 versus 8.5 percent in Q1 FY26. ROE was 9.3 percent in Q1 FY27 versus 9.2 percent in Q1 FY26, with the quarter-to-quarter series also showing volatility across FY26.

Marketing and product cadence: using campaigns to move consumer behavior

Stove Kraft’s marketing activity in the quarter shows a preference for high-frequency consumer touchpoints rather than relying on distribution alone. The company revived its Pigeon exchange offer with the Ex Ko Karo Exchange campaign, built around a playful narrative that promoted exchanging older cookware for new cookware.

The campaign was supported by social media hype posts, contests and vox pops, influencer activity including store visits, and national print advertising. The company also ran PR coverage across national and vernacular publications and invested in point-of-sale branding such as danglers, posters, truck branding, and in-store displays.

The presentation cites performance marketing metrics that exceeded initial targets: 30k plus Hit Insight Leads, 6.3 million YouTube views, 1.27 million clicks, and 43.5 million reach. While these metrics do not translate directly into sales in the same quarter, they matter because Stove Kraft’s portfolio includes frequent-purchase categories such as cookware, where brand recall and retail visibility can influence conversion.

Product launches in the quarter also suggest a push into both commercial and modular kitchen categories. The company highlighted commercial induction and infrared cooktops under Egnite and Enduro, along with a Milk Frother and a Multi-Tasker. It also showcased Gilma chimneys and hobs launches including Astrix, Flara 4XL FFD, Oriax, Curvix, Vexor 4XL FFD, Atmos, Xtreem, and Black Diamond.

What to watch: sustaining margin gains while scaling a volatile category

The quarter’s key strength is that profitability moved up alongside growth. Gross margin expanded, EBITDA margin improved, and PAT grew faster than EBITDA. That is the classic pattern of operating and financial leverage working at the same time.

But the same drivers that lifted Q1 FY27 could create volatility in future quarters. The induction category can surge when there is a clear market trigger, such as the LPG cylinder shortage cited in the presentation. That surge can fade if conditions normalize. Stove Kraft’s response, based on what it disclosed, is to build preparedness in two ways: inventory planning for long lead-time products and consumer education campaigns that try to make electric cooking a habit rather than a temporary workaround.

The working capital move is a direct reflection of that plan. Moving to 45 days from 23 days sequentially signals that management is prioritizing availability for the festive season. Investors will want to track whether the inventory converts into sales cleanly and whether margins hold as the mix evolves.

The channel mix is another stabilizer. E-commerce remains large at 31.8 percent of revenue, but General Trade at 28.6 percent and Modern Retail at 13.0 percent show that offline distribution is again a large growth contributor. Own retail at 8.7 percent, combined with 346 stores and steady customer addition, provides another lever for brand control and potentially better unit economics over time.

Closing view: disciplined execution with a clear demand capture playbook

Q1 FY27 reads like a quarter where Stove Kraft did three things right at once. It captured demand momentum in induction cooktops, protected margins despite input and supply chain pressure, and expanded distribution in both channels and geographies.

The company is entering the festive season with higher inventory and a wider retail footprint, which suggests confidence in demand and a focus on service levels for long lead-time products. If the induction category remains structurally stronger and the company continues to balance e-commerce with offline expansion, the operating leverage seen in Q1 FY27 can extend beyond a single quarter.

For investors, the takeaways are straightforward. Record revenue is now backed by improving margins, channel diversification, and an active marketing engine. The near-term variable is working capital discipline and how well inventory converts in the festive season. The long-term question is whether Stove Kraft can turn the Gas to Grid moment into a sustained electric cooking franchise while keeping its cookware base growing.