Stove Kraft profit rises 36% as revenue reaches Rs 584.666 crore

Stove Kraft Limited reported standalone profit of Rs 29.156 crore for the quarter ended September 30, 2026, up 36% from a year earlier, as revenue from operations increased 23% to Rs 584.666 crore. Profit before tax rose 42% to Rs 38.636 crore, while a negative inventory-change line reduced reported expenses.

How did Stove Kraft perform in the September 2026 quarter?

Stove Kraft recorded standalone revenue from operations of Rs 584.666 crore in the quarter ended September 30, 2026, compared with Rs 474.420 crore a year earlier and Rs 480.583 crore in the preceding June quarter. The year-on-year increase was Rs 110.246 crore, or about 23%, while sequential revenue increased by Rs 104.083 crore.

Profit for the period rose to Rs 29.156 crore from Rs 21.361 crore in the September 2025 quarter, an increase of Rs 7.795 crore, or about 36%. Profit was also above Rs 17.056 crore in the June 2026 quarter. Profit before tax increased to Rs 38.636 crore from Rs 27.154 crore a year earlier, while basic earnings per share rose to Rs 8.81 from Rs 6.46.

What drove Stove Kraft’s quarterly profit movement?

Stove Kraft’s expense mix changed materially in the September quarter, particularly through inventory movements. Changes in inventories of finished goods, stock-in-trade and work-in-progress were negative Rs 94.941 crore, compared with an expense of Rs 15.119 crore a year earlier. This movement reduced total expenses to Rs 543.607 crore even as revenue rose to Rs 584.666 crore.

Several operating costs nevertheless increased from the prior-year quarter. Material consumption rose to Rs 401.633 crore from Rs 259.485 crore, purchases of stock-in-trade increased to Rs 46.277 crore from Rs 17.041 crore, and employee benefits expense rose to Rs 56.106 crore from Rs 47.913 crore. Other expenses increased to Rs 96.995 crore from Rs 77.645 crore, while depreciation and amortisation rose to Rs 24.945 crore from Rs 20.558 crore.

Finance costs increased to Rs 9.604 crore in the September 2026 quarter from Rs 6.182 crore a year earlier and Rs 7.597 crore in the June 2026 quarter. Net tax expense was Rs 9.480 crore, versus Rs 5.793 crore a year earlier, comprising current tax of Rs 8.251 crore and deferred tax of Rs 1.229 crore. Other gains and losses were a net loss of Rs 3.124 crore, compared with a loss of Rs 3.392 crore in the prior-year quarter.

What was Stove Kraft’s first-half financial result?

Stove Kraft earned Rs 46.212 crore in the half year ended September 30, 2026, up about 45% from Rs 31.794 crore in the corresponding half of 2025. Revenue from operations increased about 31% to Rs 1,065.249 crore from Rs 814.527 crore, meaning first-half profit grew faster than sales over the same comparison.

Profit before tax for the six months rose to Rs 61.114 crore from Rs 40.497 crore, while total income increased to Rs 1,062.395 crore from Rs 813.718 crore. The first-half tax charge was Rs 14.902 crore, compared with Rs 8.703 crore a year before. Basic earnings per share for the half year were Rs 13.96, against Rs 9.61; Stove Kraft states that earnings per share are not annualised except for the year ended March 31, 2026.

The same inventory factor was visible over the half year. Inventory changes were negative Rs 125.777 crore for the six months ended September 2026, compared with an expense of Rs 8.283 crore in the prior-year half. Materials consumed rose to Rs 696.812 crore from Rs 459.331 crore, and other expenses increased to Rs 182.557 crore from Rs 127.337 crore.

How did working capital and cash flow change at Stove Kraft?

Stove Kraft’s inventory rose to Rs 556.837 crore as at September 30, 2026 from Rs 360.012 crore at March 31, 2026, while trade receivables increased to Rs 165.482 crore from Rs 114.959 crore. Other current assets rose to Rs 93.565 crore from Rs 32.645 crore. Total current assets consequently increased to Rs 829.397 crore from Rs 540.081 crore.

Net cash generated from operating activities was Rs 39.847 crore for the half year, below Rs 107.408 crore in the prior-year half. The cash-flow statement shows a Rs 196.825 crore increase in inventories, a Rs 48.402 crore increase in trade receivables and a Rs 59.895 crore increase in other assets. These movements were partly offset by a Rs 204.522 crore increase in trade payables.

Net investing cash outflow was Rs 100.855 crore for the half year, compared with Rs 70.297 crore a year earlier, including Rs 76.478 crore spent on property, plant and equipment and other intangible assets. Stove Kraft also invested Rs 21.755 crore in a wholly owned subsidiary. Net financing cash inflow was Rs 39.556 crore, reflecting Rs 103.465 crore of net short-term borrowings, while cash and cash equivalents ended September 30, 2026 at Rs 50 lakh, down from Rs 21.952 crore at March 31, 2026.

What disclosures beyond earnings should Stove Kraft investors note?

Stove Kraft operates in one reportable segment, Kitchen and Home Appliances, so the filing does not provide a revenue or profit split by product category. The company also uses non-recourse factoring arrangements for some trade receivables; receivables derecognised under these arrangements were Rs 30.823 crore at September 30, 2026, compared with Rs 26.253 crore a year earlier.

The company disclosed pending tax appeals for assessment years 2022-23 and 2023-24 following orders and demand notices seeking additional tax of Rs 1.35 crore in aggregate. Management said it believes the adjustments are erroneous or do not appreciate Stove Kraft’s submissions and evidence, and that the search operations and assessment proceedings are not likely to have a material adverse effect on its September 30, 2026 financial position or performance.

During the September quarter, Stove Kraft incorporated Guangzhou Jiawo Import & Export Co. Ltd as a wholly owned subsidiary in the People’s Republic of China, following board in-principle approval on May 25, 2026. The filing says the subsidiary, in which Stove Kraft invested on August 12, 2026, subsequently invested in a 50% interest in Yushan Wosituo New Materials Co., Ltd, a joint venture in China. The audit committee reviewed, and the board approved, the results on November 4, 2026.

Conclusion

Stove Kraft’s September-quarter standalone result combined revenue of Rs 584.666 crore with profit of Rs 29.156 crore, so profit grew faster than revenue. Higher material, employee, finance and other costs were accompanied by a negative Rs 94.941 crore inventory-change line, which reduced total reported expenses for the quarter.

What to watch next is the execution of the China subsidiary and its 50% joint-venture investment, following the subsidiary’s August 12, 2026 investment, alongside the unresolved tax appeals involving Rs 1.35 crore of additional tax demands. Inventory of Rs 556.837 crore and operating cash flow of Rs 39.847 crore for the first half also remain disclosed working-capital measures for subsequent results.