Stove Kraft Ltd

Meeting Details

• Dates: 24 August 2026 and 25 August 2026.
• Time: from 10:00 AM onwards.
• Type and mode: one-on-one investor meetings, in Singapore.
• Organiser: EMKAY Global Financial Services Limited for a Non-Deal Roadshow.

Participants

• Company management team to participate in the meetings.

Purpose

• Purpose: one-on-one investor meetings as part of a non-deal roadshow.

Additional Notes

• Dates/times may change due to exigencies of company or investors.

Overview

• Standalone BRSR for FY2025-26; manufacturer of domestic appliances and metal articles.
• Two Indian plants; serves 28 states + 6 union territories; operations in 14 international markets.
• Exports constitute 10.7% of turnover.
• Assurance: Limited Assurance provided by J. Sundharesan & Associates.
• Reporting boundary is standalone for Stove Kraft Limited.

Key ESG Risks & Opportunities

• Material risk: ~90% inputs come from a single Tier-1 supplier; mitigated via dual-sourcing and audits.
• Water risk: groundwater dependence; mitigated by RO plant, recycling, STP, and rainwater harvesting.
• Energy transition: 33% renewables; 1.7 MW solar expansion; 100% solar utilization.
• GHG & resource efficiency: BLDC motors, green chemistry, 200 tonnes aluminium recycling; ZLD.
• Cybersecurity: robust data privacy framework to protect IP and customer data.
• Gender diversity: 3:1 female-to-male workforce target with leadership development.

Governance & Policy Highlights

• Risk Management Committee oversees BR policies; CSR Committee monitors CSR initiatives.
• Board-approved policies include anti-corruption, whistleblower, human rights, environmental, and supplier conduct.
• External assurance: Limited Assurance; policy links disclosed.
• No major penalties or regulatory fines disclosed for the period.

Social Responsibility & Workforce

• Total workforce: 1029 permanent employees and 4804 workers; female share ~10% of permanent staff.
• Women on Board: 3 of 7; KMP female: 1 of 4.
• On-site OH centers, 24/7 ambulances, 350+ dorms, free meals, and transport.
• LTIFR (workers) 0.17; total injuries 2; fatalities data not disclosed for 2025-26.
• Training: 200 workers trained in AI, cyber security, and related skills.
• Career ladder programs to promote women into supervisory roles; 3:1 female-to-male target.

Environmental Performance

• Renewables share 33% of total energy use; about 1 crore units from solar/wind.
• 7 MW solar plant to be commissioned; renewables targeted to rise to 18 Lac units.
• 100% solar utilization via wheeling and internal shifts (Rolling Master).
• Water: groundwater withdrawals 57,437 kl; total water withdrawal ~57,437 kl; 90% recycled via ZLD/STP.
• GHG emissions: Scope 1 206 tCO2e; Scope 2 15,102 tCO2e; intensity 0.00000095 tCO2e per turnover.
• Waste: total 961.25 t; plastic 610 t recycled; hazardous waste 23.8 t; total recycled 610 t; disposed 351.26 t.

Stakeholder Engagement & Complaints

• Stakeholders include distributors, e-commerce aggregators, waste collectors, and employees; engagement is periodic.
• Customer complaints: 786,997 filed; 12,211 pending at year-end; most resolved promptly.
• Whistleblower, POSH, and multi-channel grievance mechanisms in place.

Other Notable Metrics

• Direct inputs: 42% from MSMEs; 76% inputs sourced domestically within India.
• Data privacy: comprehensive cyber security and data privacy policy; no data breaches reported.
• Product recalls: nil; no penalties or actions related to product safety in the year.
• Waste management: 200 tonnes annual aluminium recycling; close-loop and CPCB-verified waste vendors.

Financial highlights

• Revenue from operations rose 10.9% to ₹1,607.4 crore.
• Gross margin 38.7%, up from 38.1%.
• EBITDA ₹166.1 crore; PAT ₹42.0 crore, up 9.1%.
• Cash flow from operations ₹258 crore; WC cycle 23 days.
• Net debt ₹27.1 crore; ROCE 11.24%.

Growth and strategy

• IKEA partnership: ₹58 crore invested; three product lines.
• IKEA revenue recognition expected FY2026-27.
• Pigeon Egnite 3500 launched; HoReCa entry.
• Exclusive stores expanded to 329; target ~100 annually.
• Electric cooking portfolio expanding: induction cooktops, rice cookers, air fryers.
• Backward integration completed; capacity headroom for growth.

Geography & channels

• India revenue ₹14,356.01 crore; exports ₹1,718.23 crore.
• Exports to 14 countries; exports 10.7% of revenue.
• Channel mix: 14% e-commerce, 52% retail, 19% modern retail, 8% OEM exports.
• 329 exclusive Pigeon stores across 22 states, 151 cities.

Manufacturing & operations

• Two ISO 9001:2015 plants in Bengaluru and Baddi.
• Backbone: ~53 acres; broad backward integration.
• IKEA Harohalli plant: 180,000 sq ft dedicated tooling facility.
• In-house manufacturing; headroom for larger business.

Capital structure & dividends

• Net debt/equity 0.34; net debt ₹27.1 crore.
• Dividend proposed ₹3.50 per share; record date 4 Sep 2026.
• ESOP pool increased to 10.25 lakh options.
• CFO Ramakrishna Pendyala resigned; Subhadeep Pal appointed CFO.
• Chandru Kalro appointed Non-Executive Non-Independent Director; Vice Chair.

Governance & risk

• PWC reappointed as Statutory Auditors for FY2026-27 to FY2030-31.
• CFO change and board governance updates.
• Risk framework aligned with SEBI LODR; committees in place.

ESG & sustainability

• 41% energy from renewables; 1.7 MW solar expansion planned.
• 2030 goal: 65% energy from renewables.
• Water recycling: significant reductions; 500 KL STP/ETP framework.
• Aluminium recycling ~200 tonnes annually; sustainable packaging shift.
• CSR: ₹95 lakh spent; 5,400+ apprentices over four years.

AGM Details

• AGM date/time/mode: 11 September 2026 at 11:00 IST via VC/OAVM.
• Record date for attendance and dividend: 04 September 2026.
• E-voting window: 08 September 2026 9:00 AM to 10 September 2026 5:00 PM.
• Dividend of Rs 3.50 per equity share (35%) proposed; payable within 30 days if declared.
• Dividend, if declared, payable to members within 30 days from AGM.

Key Resolutions

• Ordinary: Adopt Audited Financial Statements for the year ended 31 March 2026.
• Ordinary: Reappoint Statutory Auditors for second five-year term.
• Ordinary: Declare dividend on equity shares for FY2025-26 at Rs 3.50 per share.
• Ordinary: Reappoint Neha Gandhi as Director liable to retire by rotation.
• Special: Ratify remuneration of Cost Auditors for 2026-27 (Rs 1,25,000 plus taxes).
• Special: Modify ESOP 2018 to increase pool to 1,025,000 options.
• Special: Reappoint Anup Sanmukh Shah as Independent Director for 2026-2031.
• Special: Reappoint Neha Gandhi as Executive Director for five years with remuneration terms.
• Special: Appoint Chandru Kalro as Non-Executive Non-Independent Director.
• Special: Approve payment of professional fees to Chandru Kalro for advisory services.

RPT & Related Remuneration

• Related party transaction: Chandru Kalro advisory services; not material per Listing Regulations.
• Remuneration framework for Neha Gandhi includes minimum remuneration and regulatory approvals.

China WOS and JV update

• WOS Guangzhou Jiawo Import & Export Co. Ltd. incorporated in China with CNY 10m investment.
• Investment date: 12 August 2026; registered capital of CNY 20m.
• JV formed in China with 50:50 equity between WOS and Ningbo Wochi New Materials.
• WOS to invest in JV soon; JV agreement to be executed.
• WOS will be a related party to Stove Kraft on incorporation.
• Objects: supply chain backward integration; trading goods for cookware components.
• Approvals obtained: RBI and PRC regulatory approvals for WOS.
• JV rights include director appointments and first refusal on new shares.
• Related party transactions to be at arm's length.
• WOS holds 100% equity in Guangzhou Jiawo Import & Export Co. Ltd.

Financial Performance

• Q1 FY27 revenue INR 480.6 crores, up 41.3% YoY.
• Gross profit INR 190.4 crores, up 46% YoY.
• EBITDA INR 53.8 crores; EBITDA margin 11.2%.
• PAT INR 17.1 crores; PAT margin 3.5%.
• ROCE 13.9%; ROE 9.3%.
• ICT accounted for 27% of revenue; Induction Cooktop grew 315.9% YoY.
• General Trade grew 56.2% YoY; 17 stores added in Q1.
• E-commerce contributed 31.8% of revenue; exports 15.3%; modern retail 13%; overall retail 8.7%.
• Franchise channel expansion: 17 stores; target 500 Pigeon outlets by 2027.
• Q2 and Q3 expected to be strong with festival-season spread.

Operations and Mix

• Induction Cooktop growth remains a core growth engine; 315.9% YoY.
• Pressure Cooker grew 41.3% YoY; non-stick cooker up 21.8%.
• Small appliances and gas cooktops faced temporary moderation due to shift to induction.
• Premiumization drives higher value mix; differentiated products supported by innovation.
• IKEA deemed export; supplies to global markets start in Q2.
• Exports expected to reach 15% of revenue over the next two years.
• Chimney category revamped with BLDC motors for competitive edge.
• Triply cookware JV with China; commercial production targeted by December.
• Induction Cooktop capacity augmented; annualized run-rate expected to be 2x last year.

Projects and Capex

• China facility to be among the largest; automated line installation underway.
• Automation-driven capex supports pressure cookers; line ready by year-end.
• Chimney manufacturing line upgrades; internal manufacturing strengthens cost leverage.
• Backward integration for triply cookware to secure supply.

Outlook and Guidance

• Gross margin to improve by at least 1% YoY; target 40-42%.
• PAT margin target of 7-8% over 2-3 years with leverage.
• Exports to reach 15% of revenue in next two years.
• Induction Cooktop contribution about 20% of annual revenue; higher possible.
• IKEA business at scale could be 5-6% of total revenue.

Q&A Highlights

• Q2 start of IKEA supplies; deemed export; growth runway in IKEA.
• Induction Cooktop to sustain growth; 2x annualized run-rate.
• Franchise expansion: profitable per-store thresholds around 2.5 lakhs; current ~4.3 lakhs.
• Working capital days ~45 in Q1 FY27; seasonality considered.
• Exports to reach 15% of revenue over next two years.

Meeting Details

• Date: 3 August 2026; time and venue not disclosed.

Key Agenda Items

• Board to consider and approve standalone unaudited financial results for quarter ended 30 June 2026.

Other Notes

• No other material notes disclosed.

Dematerialisation/rematerialisation status

• Details for quarter ended 30 June 2026 furnished to stock exchanges.
• CDSL certifies that dematerialisation/rematerialisation details were furnished to exchanges.
• NSDL certifies that dematerialisation/rematerialisation details were furnished to exchanges.

Appointment details

• Appointment of Mr. Chandru Kalro as Additional Director (Non-Executive Non-Independent) and Vice Chairperson.
• Effective 02 July 2026; term subject to shareholder approval.
• Reason for change: appointment based on Nomination and Remuneration Committee recommendation.
• Profile: over 35 years in consumer durables; former MD of TTK Prestige.
• Not related to promoters or directors; not debarred by SEBI.