Stove Kraft reported strong financial growth for the quarter ended September 30, 2026, with revenue rising 23.2% year-on-year to Rs 584.67 crore. The company saw a 70.9% sequential surge in net profit to Rs 29.16 crore. Additionally, the company announced its international expansion through a new wholly-owned subsidiary in China and a related joint venture. While tax assessment proceedings from a 2023 search remain ongoing, management expects no material impact on financial health.
Stove Kraft Reports Strong Q2 FY27 Growth
Net Profit: Rs 29.16 crore | Revenue: Rs 584.67 crore
Reader Takeaway: Robust double-digit growth in revenue and profit is tempered by ongoing tax assessment and regulatory monitoring.
What just happened
Stove Kraft delivered a strong performance for the quarter ending September 30, 2026. Revenue from operations climbed to Rs 584.67 crore, a 23.2% increase compared to the same period last year. Net profit followed suit, reaching Rs 29.16 crore, marking a 36.5% year-on-year growth and a sharp 70.9% rise compared to the previous quarter.
Strategic Expansion
The company has expanded its international footprint by incorporating a new wholly-owned subsidiary in China, Guangzhou Jiawo Import & Export Co. Ltd, capitalized in August 2026. This subsidiary has further invested in a 50% stake in Yushan Wosituo New Materials Co., Ltd, signaling a strategic move into new materials and international markets.
Legal and Regulatory Update
Regarding the income tax search operations initiated in November 2023, the company continues to navigate ongoing assessment proceedings. While some years have been concluded, others have resulted in tax demand notices totaling Rs 1.35 crore. The company has formally appealed against these demands for AY 2022-23 and 2023-24. Management maintains that these demands are based on inaccurate assessments and do not anticipate any material adverse impact on the company’s operations or financial position.
What to track next
Investors should monitor the outcome of the pending tax appeals to see if the financial provisions remain stable. Additionally, the operational progress and contribution of the newly formed Chinese subsidiary and joint venture will be key indicators of the company’s international growth strategy in the coming quarters.