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Stove Kraft Ltd

| Quarterly Financial Results Q3 FY 2025-26

NEUTRAL SENTIMENT

Report Source

⬤31st Jan 26

Summary : Stove Kraft reported unaudited Q3 and 9M FY26 results with a decline in quarterly profit, alongside ongoing tax assessments and a review of store strategy.

Quarterly Report Analysis & Insights

Financial Disclosures

  1. Total expenses for 9M FY26 at Rs 11,442.84 million (vs Rs 10,882.11 million in 9M FY25).
  2. Total expenses for Q3 FY26 at Rs 3,710.63 million (vs Rs 3,890.60 million in Q3 FY25).
  3. Cost of materials consumed is the largest expense component.
  4. Company uses factoring agreements for trade receivables on a non-recourse basis.
  5. Revenue from operations for 9M FY26 at Rs 11,929.01 million (vs Rs 11,368.25 million in 9M FY25).
  6. Revenue from operations for Q3 FY26 at Rs 3,783.74 million (vs Rs 4,040.63 million in Q3 FY25).
  7. Additional tax demand aggregating to Rs 135 million from Income Tax Department.
  8. Paid-up Equity Share Capital at Rs 331.07 million as of Dec 31, 2025.
  9. Reserves excluding revaluation reserves at Rs 4,377.59 million as of Mar 31, 2025.
  10. Statement appears to be standalone, focusing on Company's single segment.

Corporate Overview

  1. Primarily India, with registered and corporate offices in Bengaluru, Karnataka.
  2. Ongoing income tax department search operations and assessment notices.
  3. Potential impact from new Labour Codes.
  4. Relies on factoring agreements for trade receivables.
  5. Manufactures and sells kitchen and home appliances.
  6. Formal and compliant, reporting financial results and regulatory updates.
  7. Kitchen and Home Appliances

Risk Factors

  1. Income tax department search operations.
  2. Pending income tax assessment proceedings.
  3. Impact of new Labour Codes.
  4. Significant decline in quarterly profit.

Key Drivers

  1. Trading window reopens February 3, 2026.
  2. Board approved unaudited financial results.
  3. Management confident on tax impact.
  4. Evolving store portfolio strategy underway.

Auditor’s Report

  1. Unmodified review opinion on unaudited financial results.
  2. Draws attention to Note 6 regarding Income Tax Department search operations, without modifying conclusion.

Board Commentary

  1. Income Tax Department search operations and assessment notices.
  2. Potential impact of new Labour Codes.
  3. Income Tax Department search operations and assessment notices.
  4. Notification regarding new Labour Codes.

Corporate Governance

  1. Code of Conduct to Regulate, Monitor and Report Trading by Insiders.
  2. Audit Committee reviewed and recommended financial results.
  3. Nomination and Remuneration Committee approved employee stock options.

Management Discussion & Analysis

Future Strategy

  1. Evolving store portfolio strategy, including consolidations and closures.

Risk Control Measures

  1. Management believes tax adjustments are not material.
  2. Monitoring finalization of Labour Codes for impact assessment.

Critical Risks

  1. Income tax department search operations and assessment notices.
  2. Uncertainty regarding new Labour Codes impact.
Stove Kraft Ltd (STOVEKRAFT) Quarterly Report Analysis & Insights | Dhanarthi