Stove Kraft targets FY27 growth above 15% as exports and IKEA business scale
Stove Kraft expects FY27 revenue growth to exceed 15%, with EBITDA margin improving beyond 11%. The cookware and appliances maker is targeting about ₹200 crore in exports, while IKEA revenue could reach ₹50 crore in FY27 and ₹250 crore over three years.
What happened
Stove Kraft expects FY27 revenue growth above 15%, supported by demand for induction cooktops, appliances and pressure cookers. It targets margin expansion
Key facts
- FY27 revenue growth expected to exceed 15%
- Q1 FY27 revenue rose 41% YoY to ₹480 crore from ₹340 crore
- Q1 EBITDA rose 51% YoY to ₹53.7 crore from ₹35.6 crore
- Q1 EBITDA margin improved to 11.2% from 10.5%
- Gross margin expanded to 39.6% from 38.2%
- Q1 net profit rose 63% YoY to ₹17 crore from ₹10.4 crore
- Exports expected at about ₹200 crore in FY27
- Export share targeted to rise from about 12% to 15% before end-FY28
- IKEA revenue could be about ₹50 crore in FY27 and ₹250 crore over three years
- Inventory days increased to 45 from about 23, with 20-25 days targeted as sustainable
- Market capitalisation around ₹2,521.29 crore
Why this matters
The expanding IKEA relationship and export target strengthen Stove Kraft’s case for partnerships or acquisitions that add international distribution, product adjacency or manufacturing scale.
What to watch
- Quarterly revenue growth remaining above the stated 15% FY27 target after the Q1 41% increase.
- EBITDA margin sustaining above 11.2% versus signs that discounting, raw-material inflation or freight costs reverse the 70 bps improvement.
- Disclosed export order book, new geography additions, export revenue run rate and progress toward ₹200 crore.
- IKEA revenue conversion, vendor approvals, capacity commitments and evidence of a path from roughly ₹50 crore in FY27 toward ₹250 crore over three years.
- Domestic demand trends in cookware and small appliances, including retailer inventory levels and festive-season sell-through.
- Steel, aluminium, energy, freight and foreign-exchange movements, alongside the company's ability to pass costs through pricing.
- Expand export-market distribution and secure repeat institutional/private-label orders to build toward the ₹200 crore export target.
- Scale IKEA-specific manufacturing, quality compliance and supply-chain capacity while converting the initial ₹50 crore FY27 opportunity into multi-year sourcing programs.
- Prioritize premium cookware, appliances and higher-margin branded products to reduce reliance on promotional volume growth.
- Use Q1 demand momentum to improve channel inventory turns and avoid overstocking ahead of seasonal demand periods.
- Protect gross margin through metal-cost procurement, pricing discipline, product redesign and freight/currency hedging where relevant.