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Stove Kraft Q3 Profit Plunges 67% Amid Weak Consumer Durables Demand

Stove Kraft reported a sharp 66.6% year-on-year decline in net profit for the December quarter, falling to Rs 4 crore. Revenue also decreased by 6.4% to Rs 378.3 crore, impacted by weak demand in the consumer durables market. The company's operating performance softened, with EBITDA falling 15% and margins narrowing, partly due to one-time costs like gratuity provisions and forex losses. Despite the challenging quarter, Managing Director Rajendra Gandhi highlighted resilient performance and operational efficiency, with the company expanding its retail presence and maintaining its long-term store expansion target.

Key Points: Stove Kraft Q3 Profit Drops 67%, Revenue Falls 6.4%

  • Q3 profit fell 66.6% to Rs 4 crore
  • Revenue declined 6.4% to Rs 378.3 crore
  • Operating margin narrowed to 9%
  • Retail network expanded to 313 stores
2 min read

Cooking appliances maker Stove Kraft's profit plunges 67 pc in Q3

Stove Kraft's Q3 profit plunges 67% to Rs 4 crore as revenue declines. MD cites resilient performance in a tough market. Company expands retail footprint.

"The company delivered a resilient performance despite a tough business environment. - Rajendra Gandhi"

Mumbai, Jan 31

Stove Kraft on Saturday posted a 66.6 per cent year-on-year fall in profit for the December quarter as weak demand in the consumer durables market affected sales.

The company's net profit dropped to Rs 4 crore as compared to year-ago period, according to its stock exchange filing.

Revenue also declined by 6.4 per cent to Rs 378.3 crore compared to the same period last financial year (Q3 FY25).

Operating performance softened, with EBITDA falling 15 per cent to Rs 34.2 crore. The operating margin narrowed to 9 per cent, down from 10 per cent a year ago.

Stove Kraft said pressure cookers and small appliances together made up around 30 per cent of its total revenue for the quarter.

During the period, the company continued to expand its retail presence by adding 17 new stores. This took its total number of outlets to 313 across 21 states and 138 cities.

The company's earnings were also impacted by certain one-time costs. It incurred Rs 1.24 crore towards gratuity provision and leave encashment following the implementation of the new labour code.

In addition, it recorded a forex loss of Rs 1.90 crore, according to its stock exchange filing.

Commenting on the results, Managing Director Rajendra Gandhi said the company delivered a resilient performance despite a tough business environment.

He added that strong execution and operational efficiency helped support the business during the quarter.

For the first nine months of FY26, Stove Kraft's revenue stood at Rs 1,192.9 crore -- marking a 4.9 per cent increase from the same period last financial year.

Gross margins improved to 38.8 per cent during this period. The company's flagship brand, Pigeon, recorded a year-to-date growth of 9.7 per cent on a compounded basis.

Working capital days also improved, reducing to 43 days, the company said in its exchange filing.

Looking ahead, Stove Kraft said it remains on track to meet its goal of opening 500 standalone Exclusive Pigeon Stores by calendar year 2027.

The expansion will continue through a mix of company-owned and franchise-operated store models.

- IANS

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Reader Comments

R
Rohit P
The article mentions they are still expanding stores. Maybe they are investing heavily in growth, which is hitting short-term profits? Opening 500 stores by 2027 is an ambitious target. Long-term vision seems solid, even if this quarter was bad. 🤔
A
Aman W
Weak demand in consumer durables is a real issue. With inflation, people are postponing buying new cookers and appliances. My family decided to repair our old mixer instead of buying a new one this Diwali. It's a tough market for everyone.
S
Sarah B
Interesting to see the breakdown. Pressure cookers and small appliances are 30% of revenue. That's their core, but maybe competition from online brands like Wonderchef and AmazonBasics is eating into their market share? They need stronger digital presence.
K
Karthik V
The forex loss and one-time labour code costs explain part of the profit plunge. Without those, the picture might be slightly better. Still, a 6.4% revenue decline is not good. Hope the management's focus on operational efficiency pays off soon.
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Nisha Z
Respectfully, calling it a "resilient performance" when profit falls 67% feels like spin. Be honest with shareholders. The market is tough, we get it. The positive is the 9-month revenue growth and improved working capital. Focus on that truth.
V

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