Stove Kraft H1 PAT surpasses FY26 total as margins rise

Stove Kraft Limited reported consolidated H1 FY27 profit after tax of Rs 46.0 crore, surpassing Rs 42 crore for all of FY26, as revenue rose 30.8% year on year to Rs 1,065.2 crore and EBITDA increased 39.7% to Rs 129.1 crore, according to its investor presentation.

How did Stove Kraft’s H1 FY27 profit compare with FY26?

Stove Kraft’s H1 FY27 profit after tax, or PAT, of Rs 46.0 crore was Rs 4.0 crore above the Rs 42 crore it reported for the full FY26. The H1 PAT also rose 44.8% year on year, exceeding the 30.8% increase in first-half revenue. The presentation does not provide a full-year FY27 PAT forecast.

Revenue reached Rs 1,065.2 crore in H1 FY27, while gross profit was Rs 422.1 crore and earnings before interest, tax, depreciation and amortisation, or EBITDA, was Rs 129.1 crore. Gross profit increased 34.8% year on year and EBITDA increased 39.7%, meaning both rose faster than revenue. Management attributed the faster EBITDA and PAT growth to operating and financial leverage.

What were Stove Kraft’s Q2 FY27 earnings and margin results?

Stove Kraft reported Q2 FY27 revenue of Rs 584.7 crore, up 23.2% year on year, and a highest-ever EBITDA percentage of 12.9%. Quarterly gross profit rose 26.8% to Rs 231.7 crore, EBITDA increased 32.7% to Rs 75.3 crore, and PAT increased 35.7% to Rs 29.0 crore.

The Q2 growth rates were lower than the H1 FY27 rates of 30.8% for revenue and 39.7% for EBITDA. Even so, Q2 gross profit, EBITDA and PAT each grew faster than the 23.2% rise in sales. The company described Q2 FY27 as its highest-ever revenue quarter and linked the earnings growth to operating and financial leverage.

Which products drove Stove Kraft’s H1 FY27 revenue growth?

Stove Kraft’s induction cooktops were its fastest-growing disclosed category in H1 FY27, rising 188.9% year on year. Cooker sales increased 44.6%, non-stick cookware increased 9.5%, and small appliances increased 4.7%, while gas cooktops declined 6.6%.

Induction cooktops accounted for 32% of H1 FY27 revenue, the largest category share disclosed. Pressure cookers and non-stick cookware each accounted for 22%, small appliances for 18%, and gas cooktops for 5%. In Q2 FY27, small appliances held the largest share at 36%, while induction cooktops represented 18%, showing a different quarterly mix from the H1 composition.

Q2 FY27 induction cooktop growth was 108.0%, below the 188.9% H1 rate, while cooker growth was 46.8%, close to the 44.6% H1 result. Small appliances grew 9.1% in Q2, above the 4.7% H1 rate. Non-stick cookware declined 1.6% in Q2 but was up 9.5% for H1, whereas gas cooktops remained down in both periods.

How did Pigeon and other brands contribute to H1 FY27 sales?

Stove Kraft’s Pigeon brand recorded H1 FY27 revenue of Rs 938.0 crore, compared with Rs 686.0 crore in H1 FY26. Original equipment manufacturer, or OEM, revenue was Rs 119.6 crore, compared with Rs 117.1 crore, while the Others category declined to Rs 7.7 crore from Rs 11.8 crore.

Pigeon therefore accounted for the largest disclosed brand-level sales increase, rising Rs 252.0 crore year on year. OEM revenue rose Rs 2.5 crore, while Others fell Rs 4.1 crore. Stove Kraft defines Others as revenue from LED, Gilma, Black & Decker and Skava.

In Q2 FY27, Pigeon revenue rose to Rs 533.8 crore from Rs 415.9 crore in Q2 FY26. OEM revenue declined to Rs 46.3 crore from Rs 51.4 crore, and Others declined to Rs 4.5 crore from Rs 7.4 crore. This quarterly pattern also placed Pigeon at the centre of the disclosed brand-level sales growth.

How did Stove Kraft’s channels, working capital and returns change?

Stove Kraft reported broad-based H1 FY27 domestic channel growth, led by own retail revenue rising 70.3% year on year to Rs 83.8 crore and general trade rising 52.2% to Rs 323.7 crore. E-commerce revenue rose 24.2% to Rs 376.1 crore and modern retail increased 27.3% to Rs 134.6 crore, while export revenue fell 1.0% to Rs 120.5 crore.

E-commerce was the largest H1 FY27 channel by contribution at 35.3%, followed by general trade at 30.4%. Own retail represented 7.9% of H1 revenue, compared with 7.2% in Q2 FY27. The presentation also said retail expanded into nine new cities during Q2 FY27, while Pigeon operated 360 stores across 22 states and 172 cities.

Stove Kraft’s net working-capital days improved to 32 in Q2 FY27 from 51 in Q2 FY26. Management attributed the 19-day reduction to better inventory utilisation and strong festive-season demand. Return on equity rose to 10.4% from 8.3% in FY26, while return on capital employed rose to 15.6% from 12.6%.

Conclusion

Stove Kraft’s H1 FY27 result combined Rs 46.0 crore of PAT, above the Rs 42 crore earned in all of FY26, with Rs 1,065.2 crore of revenue and Rs 129.1 crore of EBITDA. Gross profit, EBITDA and PAT all grew faster than sales, while Q2 FY27 delivered the company’s disclosed record EBITDA percentage of 12.9% and net working-capital days fell by 19 days year on year.

The next results will show whether induction cooktops can maintain their 188.9% H1 FY27 growth, whether gas cooktops can recover from their 6.6% decline, and whether Pigeon can extend its Rs 938.0 crore first-half revenue. The presentation does not disclose a FY27 full-year profit target, leaving the sustainability of the first-half earnings run rate unresolved.