Why Did Stove Kraft's Profit Plummet by 67% in Q3?
Synopsis
In a challenging market, Stove Kraft's latest financial results reveal a significant downturn. With profits down by 66.6% and revenues declining, the company is navigating tough waters while expanding its retail presence. What does this mean for the future of consumer durables in India?
Key Takeaways
66.6% profit decline in Q3 FY26 due to weak demand.
Revenue fell by 6.4% to Rs 378.3 crore .
Operating margin narrowed to 9% .
Expansion of 17 new stores to reach 313 outlets .
Future goal to open 500 Exclusive Pigeon Stores by 2027.
Mumbai, Jan 31 (NationPress) On Saturday, Stove Kraft reported a staggering 66.6% decline in profit year-on-year for the December quarter (Q3 FY26) due to subdued demand in the consumer durables sector, which significantly impacted sales.
The company's net profit fell to Rs 4 crore compared to the same period last year, as stated in its stock exchange filing.
Revenue decreased by 6.4% to Rs 378.3 crore compared to Q3 FY25.
Operating performance showed signs of weakness, with EBITDA decreasing by 15% to Rs 34.2 crore. The operating margin contracted to 9%, down from 10% the previous year.
Stove Kraft indicated that pressure cookers and small appliances collectively constituted approximately 30% of its total revenue during the quarter.
During this time, the company expanded its retail footprint by opening 17 new stores, raising its total number of outlets to 313 across 21 states and 138 cities.
The firm's earnings were further affected by one-time expenses, including Rs 1.24 crore for gratuity provisions and leave encashment related to the new labor code.
Additionally, it faced a forex loss of Rs 1.90 crore, as per its stock exchange filings.
Managing Director Rajendra Gandhi commented on the results, stating that the company showcased a resilient performance amid challenging market conditions.
He emphasized that effective execution and operational efficiency were key to maintaining business stability throughout the quarter.
For the first nine months of FY26, Stove Kraft reported revenues of Rs 1,192.9 crore, reflecting a 4.9% rise compared to the previous fiscal year.
Gross margins improved to 38.8% during this timeframe. The company’s flagship brand, Pigeon, achieved a year-to-date growth of 9.7% on a compounded basis.
Working capital days decreased to 43 days, according to the company’s exchange filing.
Looking forward, Stove Kraft remains committed to its goal of launching 500 standalone Exclusive Pigeon Stores by the end of 2027, through a combination of company-owned and franchise-operated models.
Point of View
The significant decline in Stove Kraft's profits highlights the ongoing challenges within the consumer durables market. The company's efforts to expand its retail presence may provide a path to recovery, but the impact of external market forces remains a critical concern.
NationPress
21 Jun 2026
Frequently Asked Questions
What caused Stove Kraft's profit decline?
The profit decline was primarily due to weak demand in the consumer durables market.
How much did Stove Kraft's revenue fall?
Revenue decreased by 6.4% to Rs 378.3 crore compared to the same period last year.
What is the company's future expansion plan?
Stove Kraft aims to open 500 standalone Exclusive Pigeon Stores by the end of 2027.
What were the one-time costs affecting earnings?
The company incurred Rs 1.24 crore towards gratuity provisions and Rs 1.90 crore in forex losses.
How did gross margins perform this quarter?
Gross margins improved to 38.8% for the first nine months of FY26.
