According to reports from CNBC TV18, Stove Kraft reported a sharp decline in profitability for the December quarter, with net profit falling 66.6% to ₹4 crore compared to the year-ago period. The company's revenue declined 6.4% to ₹378.3 crore during the same period, reflecting the challenging consumer demand environment in the durables segment. As per the company's stock exchange filing, the profit plunge was primarily attributed to weak demand in the consumer durables market, with operating performance softening across key metrics.
As reported by CNBC TV18, EBITDA slipped 15% to ₹34.2 crore and the operating margin narrowed to 9% from 10% a year earlier. The company's pressure cookers and small appliances together contributed around 30% of quarterly revenue. Despite the challenging quarter, Stove Kraft continued its expansion strategy, adding 17 new stores during the quarter, bringing the total retail footprint to 313 outlets across 21 states and 138 cities. The company's earnings were also impacted by certain one-time costs, including ₹1.24 crore towards gratuity provision and leave encashment due to the new labour code implementation, and ₹1.90 crore on account of forex loss.
According to the report, the company incurred one-time expenses of ₹1.24 crore towards gratuity provision and leave encashment due to the new labour code, and ₹1.90 crore on account of forex loss. Despite these challenges, Stove Kraft maintained its expansion momentum, with Managing Director Rajendra Gandhi noting the company delivered a resilient performance despite the tough business environment. He emphasized that strong execution and operational efficiency helped support the business during the quarter, highlighting the company's ability to navigate challenging market conditions.
As reported by CNBC TV18, revenue for 9MFY26 stood at ₹1,192.9 crore, up 4.9% year-on-year, with gross margins improving to 38.8%. The flagship Pigeon brand recorded 9.7% CAGR YTD growth, while working capital days were reduced to 43. The company reiterated its commitment to achieving its target of 500 standalone Exclusive Pigeon Stores by CY2027 through a mix of COCO and COFO models, with expansion continuing through both company-owned and franchise-operated store models.
