Stove Kraft reported strong Q2 FY27 financial results, with revenue growth, improving operating margins and higher profitability. The kitchen and home appliances manufacturer benefited from demand across major product categories and continued expansion of its distribution network.

Revenue from operations increased 23.2% year-on-year to ₹584.7 crore, compared with ₹474.4 crore in the corresponding quarter of the previous financial year. The performance reflected healthy sales momentum across the company’s domestic business.

On a sequential basis, revenue rose 21.7% from ₹480.6 crore in Q1 FY27. This improvement highlighted stronger quarterly sales, although seasonal demand patterns remain important when evaluating the company’s underlying growth trajectory.

EBITDA increased 32.7% year-on-year to ₹75.3 crore from ₹56.8 crore. Operating earnings grew faster than revenue, indicating that the company was able to improve profitability alongside higher business volumes.

The EBITDA margin expanded to 12.9%, compared with 12.0% in the year-ago quarter and 11.2% in the preceding quarter. This improvement reflected better operating leverage, manufacturing efficiencies and product mix.

Gross profit rose 26.8% year-on-year to ₹231.7 crore, while the gross profit margin improved to 39.6% from 38.5%. The expansion suggests that the company retained a larger share of revenue after accounting for direct product costs.

Consolidated profit after tax increased 35.7% year-on-year to approximately ₹29 crore, compared with ₹21.4 crore previously. Profit growth outpaced revenue growth, supported by stronger operating performance.

Sequentially, net profit increased approximately 69.9% from ₹17.1 crore. The company’s net profit margin improved to around 5.0%, compared with 4.5% a year earlier and 3.5% in the previous quarter.

Product-level performance revealed particularly strong demand for induction cooktops. Sales in this category increased 108% year-on-year, making it one of the most significant contributors to Stove Kraft’s quarterly growth.

Pressure cookers also delivered healthy performance, recording 46.8% year-on-year growth. Small appliances registered a 9.1% increase, indicating positive but comparatively moderate demand across that segment.

However, not every product category delivered growth. Gas cooktop sales declined 6.4%, demonstrating that demand conditions remained uneven despite the company’s strong overall quarterly performance.

Distribution channels contributed significantly to revenue expansion. Retail sales grew approximately 57%, while general trade increased around 49%, highlighting the importance of physical distribution alongside the company’s established sales channels.

Stove Kraft added 16 stores and expanded into nine new cities during the quarter. Its retail network reached 360 stores across 172 cities and 22 states, strengthening the company’s presence in multiple regional markets.

Of the total retail network, 198 stores operated under the franchisee model. This approach allows Stove Kraft to expand its market presence while sharing certain operating responsibilities with franchise partners.

The company also reported adding more than 1.41 lakh customers during the quarter, alongside a repeat purchase rate of approximately 15%. These indicators provide additional context about customer acquisition and recurring demand.

Another important development was the relaunch of GILMA as a premium brand in southern India. The brand operated 17 franchisee stores across three states and 10 cities, supporting Stove Kraft’s strategy of expanding beyond its core value-oriented portfolio.

Managing Director Rajendra Gandhi highlighted demand across key categories, integrated manufacturing capabilities and operational efficiencies as important contributors to performance. Management also acknowledged inflationary pressures and geopolitical disruptions affecting the operating environment.

The company’s first-half performance reinforced the quarterly improvement. Revenue increased 30.8% year-on-year to ₹1,065.2 crore, while EBITDA rose 39.7% to ₹129.1 crore.

First-half profit after tax increased 44.8% to ₹46 crore from ₹31.8 crore. The results showed that earnings growth exceeded revenue growth over the six-month period as well.

Despite the encouraging earnings numbers, certain financial indicators deserve attention. Inventory increased to approximately ₹556.8 crore, while operating cash flow for the first half was around ₹25.4 crore, making cash conversion an important area to monitor.

Export sales also declined approximately 10.3% during the quarter. This weakness, together with uneven product-category performance, indicates that the company still faces challenges despite its stronger domestic operations and improving margins.

For investors tracking Stove Kraft, the key considerations are whether revenue momentum can continue, whether the 12.9% EBITDA margin is sustainable and how effectively the company manages inventory, borrowings and cash generation. Product innovation, premiumisation and distribution expansion remain central to its longer-term operating outlook.