According to Emkay Global Financial's research report dated May 14, 2026, Stovekraft delivered impressive Q4 results with revenue growing 32% year-on-year, driven by robust growth across verticals excluding gas cooktops amid gas supply shortages. The company's EBITDA increased 26% YoY, though EBITDA margin fell by 30 basis points quarter-on-quarter to 9.2% due to an 80 basis points QoQ gross margin decline, which was largely offset by better operating leverage. As reported by Emkay Global, the strong performance was achieved despite challenging market conditions including gas supply constraints.
The management provided optimistic guidance for FY27 revenue growth of 15%, led by small appliances segment, ramp-up in IKEA supplies from Q1FY27 with full potential at ₹2-2.5 billion per annum, and export normalization. According to Emkay Global's analysis, Stovekraft has implemented a 10% price hike to counter rising commodity costs, with additional price increases planned for export supplies from June 2026 following ongoing negotiations. The company expects long-term gross margin to remain in similar territory with potential for approximately 1% annual improvement as volumes scale up.
Emkay Global maintains its buy rating on Stovekraft with a target price of ₹700, raising the March 2027 target price by approximately 8% from ₹650. As reported by Emkay Global, the valuation is based on 11x FY28E EV/EBITDA multiple. With the majority of the capital expenditure cycle now completed, Stovekraft aims for ₹25-30 billion revenue in the next 2-3 years without requiring any meaningful incremental capital expenditure. The brokerage expects the company to protect its 11% EBITDA margin in FY27 while benefiting from operating leverage as revenue grows.
