Stove Kraft margin beats sector median despite category and export declines
Management said domestic channels led growth, while negative other income of Rs 2.32 cr provided no lift to consolidated profit.
Filed 04 Nov 2026, 14:29 IST · Stove Kraft Ltd (STOVEKRAFT)
Key takeaways
- Consolidated operating margin was 12.88%, 0.97 percentage points above the Consumer Discretionary peer median.
- Management said retail and general trade grew +57% and +49% YoY, respectively, even as exports declined -10.3% YoY.
- The stock rose +2.97% on results day, with traded volume at 4.65 times the reference level.
Price around the results
Operating margin beat peers without an other-income boost
Stove Kraft's consolidated operating margin of 12.88% was 0.97 percentage points above the median for 223 Consumer Discretionary peers that had reported the quarter. Interest of Rs 9.60 cr and depreciation of Rs 24.95 cr reduced operating profit of Rs 75.32 cr to profit before tax of Rs 38.46 cr. Other income was negative at Rs 2.32 cr, so reported net profit of Rs 28.98 cr received no support from this line.
Domestic channels grew while exports and key categories weakened
Management said domestic growth was broad-based, led by retail at +57% YoY and general trade at +49% YoY. The presentation also showed declines of -1.6% YoY in non-stick cookware, -6.4% in gas cooktops and -10.3% in exports. The quarter therefore had a mixed product and geographic performance despite the reported domestic channel gains.
Gilma relaunch and product campaigns expand the brand push
Management said Gilma was relaunched as a premium brand in southern markets, with campaigns in English, Kannada and Telugu. The company also said it launched high-visibility campaigns for PULSE and the IVO Air-Fryer across print, public relations, influencers and performance marketing. These initiatives target different customer segments, according to the presentation.
Shares rose on results day
The stock gained +2.97% on November 4, including a +1.23% opening gap and a +2.34% relative move. Volume was 4.65 times the reference level.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹585 cr |
| Other income | ₹-2 cr |
| Expenses | ₹509 cr |
| Operating profit | ₹75 cr |
| Operating margin (%) | 12.88% |
| Interest | ₹10 cr |
| Depreciation | ₹25 cr |
| Profit before tax | ₹38 cr |
| Tax | ₹9 cr |
| Net profit | ₹29 cr |
| EPS (₹) | ₹8.75 |
Operating margin of 12.88% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.97% | +2.34% |
Volume on the results session was 4.65× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company reported broad-based domestic channel growth in Q2 and H1, led by retail and general trade.
- The company states that working capital days improved to 32 in Q2 FY27 from 51 in Q2 FY26.
New initiatives
- The company relaunched the Gilma premium brand in southern markets.
- High-visibility campaigns were launched for PULSE and IVO Air-Fryer using print, PR, influencers and performance marketing.
- Gilma launched campaigns in English, Kannada and Telugu with a new communication theme.
Problems & risks
- Non-stick cookware revenue declined 1.6% year on year in Q2 FY27.
- Gas cooktop revenue declined 6.4% year on year in Q2 FY27.
- Export revenue declined 10.3% year on year in Q2 FY27.
What to watch
- Whether consolidated operating margin holds above 12.88%.
- Whether exports improve from the reported -10.3% YoY decline.
- Whether non-stick cookware and gas cooktops recover from their -1.6% and -6.4% YoY declines.