Current/ Expected Orderbook/ Pending Orders?

Stove Kraft has already secured orders for the whole year from IKEA. Actual revenue from IKEA is expected to start from the first quarter of April FY '27. Production for IKEA was initially expected to start in Q4 FY '26 but has been delayed by 3 months due to testing and approval delays. The company is at the final stages of approvals from various labs, including those in China, with lab reports expected by March. The BIS implementation for hobs has been deferred by 6 months; once implemented, Stove Kraft expects market share gains due to its in-house manufacturing capacity. Other pe

Any current/future new fundraising through debt or equity?

No explicit mention of any current or planned new fundraising through debt or equity in the call. Company focused on substantial debt reduction, having reduced debt by INR 80 crores during the quarter. Aim to become cash debt-free by year-end, with normal bank borrowings expected to be close to zero. Some lease financing and supplier credit remain, but overall net debt targeted to approach zero soon. No indications or plans disclosed about equity fundraising. Management emphasizes operating cash flow generation and optimizing working capital rather than raising new funds.

Any current/future capex/capital investment/strategic investment?

Capex payments net INR 63 crores made in the 9 months period. Capitalization of IKEA facility pending; expected to be completed 100% before March-end. The plant setup and product development for export business (notably IKEA) completed, with revenue start expected at the end of the current quarter and meaningful revenue from next year. Investment focus on expanding in-house manufacturing to manage costs and ensure quality, especially due to rising imported component and commodity prices. Ongoing store expansion with a target of 500 exclusive Pigeon retail stores by 2027; currently at 3

Future growth expectations in sales/revenue/volumes?

Domestic business expected to sustain double-digit growth for next 2-3 years, with leadership in key categories, especially pressure cookers. Cookware and small appliances segments are growing fast; pressure cookers growing disproportionately to the industry. Export business to grow over FY '26 levels, with new IKEA business starting meaningful revenue from FY '27 Q1. Export growth currently subdued due to tariff-related pauses; optimism exists for stabilization and future growth. Gross margins targeted to improve by about 1% year-on-year, aiming for 41-42% in next 3 years. Capacity utilizatio

Future growth expectations in earnings/operating earnings/profits/EPS?

The company expects **double-digit revenue growth** in domestic business over the next 2-3 years, with annual growth likely above a 9-15% baseline. **Gross margin guidance** targets improving from the current ~39% towards 41-42% over the next 3 years, implying margin expansion. EBITDA margin is expected to improve by **at least 1% year-on-year**, supported by operational efficiencies and debt reduction. Export growth for FY ’27 is forecasted to increase over FY ’26, aided by a new business stream from IKEA and normalization of existing export operations. Operating Cash Flow stood at INR242 cro

Stove Kraft LtdQ4 FY26

Stove Kraft Ltd Q4 FY26 Earnings Call Analysis

Revenue, margin, capex, fundraise and order book outlook from management commentary.

Price: ₹751P/E: 51.5Market Cap: ₹2.5K Cr

Management growth scorecard

Revenue

Category 3

Margin

Category 3

Fundraise

Order

N/A

Capex

Yes

1 of 4 growth signals are positive — mixed outlook.

Full analysis

Revenue guidance

Category 3

→Domestic business expected to sustain double-digit growth for next 2-3 years, with leadership in key categories, especially pressure cookers.
→Cookware and small appliances segments are growing fast; pressure cookers growing disproportionately to the industry.
→Export business to grow over FY '26 levels, with new IKEA business starting meaningful revenue from FY '27 Q1.
→Export growth currently subdued due to tariff-related pauses; optimism exists for stabilization and future growth.
→Gross margins targeted to improve by about 1% year-on-year, aiming for 41-42% in next 3 years.
→Capacity utilization for cast iron at 40-45%, with room for growth.
→Operating cash flow remains healthy (INR ~240 crores for 9 months), supporting growth and debt reduction.
→Price adjustments being implemented to offset commodity cost increases, supporting margin resilience.

Margin guidance

Category 3

→The company expects **double-digit revenue growth** in domestic business over the next 2-3 years, with annual growth likely above a 9-15% baseline.
→**Gross margin guidance** targets improving from the current ~39% towards 41-42% over the next 3 years, implying margin expansion.
→EBITDA margin is expected to improve by **at least 1% year-on-year**, supported by operational efficiencies and debt reduction.
→Export growth for FY ’27 is forecasted to increase over FY ’26, aided by a new business stream from IKEA and normalization of existing export operations.
→Operating Cash Flow stood at INR242 crores for 9 months FY ’26, indicating strong cash generation potential.
→The company is confident about becoming **cash debt free by end of this quarter**, reducing interest expenses and supporting margin improvement.
→Overall, while short-term export headwinds persist, strong domestic growth and new export contracts underpin positive earnings and EPS growth outlook.

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Fundraise plans

→No explicit mention of any current or planned new fundraising through debt or equity in the call.
→Company focused on substantial debt reduction, having reduced debt by INR 80 crores during the quarter.
→Aim to become cash debt-free by year-end, with normal bank borrowings expected to be close to zero.
→Some lease financing and supplier credit remain, but overall net debt targeted to approach zero soon.
→No indications or plans disclosed about equity fundraising.
→Management emphasizes operating cash flow generation and optimizing working capital rather than raising new funds.

Order book

→Stove Kraft has already secured orders for the whole year from IKEA.
→Actual revenue from IKEA is expected to start from the first quarter of April FY '27.
→Production for IKEA was initially expected to start in Q4 FY '26 but has been delayed by 3 months due to testing and approval delays.
→The company is at the final stages of approvals from various labs, including those in China, with lab reports expected by March.
→The BIS implementation for hobs has been deferred by 6 months; once implemented, Stove Kraft expects market share gains due to its in-house manufacturing capacity.
→Other pending large-scale new business in exports has been affected by tariff uncertainties and delivery issues but is expected to stabilize and grow in FY '27.

Capex plans

Yes

→Capex payments net INR 63 crores made in the 9 months period.
→Capitalization of IKEA facility pending; expected to be completed 100% before March-end.
→The plant setup and product development for export business (notably IKEA) completed, with revenue start expected at the end of the current quarter and meaningful revenue from next year.
→Investment focus on expanding in-house manufacturing to manage costs and ensure quality, especially due to rising imported component and commodity prices.
→Ongoing store expansion with a target of 500 exclusive Pigeon retail stores by 2027; currently at 313 stores across 21 states and 138 cities.
→Strong emphasis on strategic investments to drive product innovation in small domestic appliances and consumer appliances.

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