Stove Kraft Ltd Management Discussions

The global economy is expected to maintain stable growth, though momentum is gradually slowing amid ongoing geopolitical tensions, trade policy uncertainty, and softer global demand. The International Monetary Fund (IMF) projects global GDP growth at 3.3% in 2026 and 3.2% in 2027, broadly in line with the estimated

3.3% growth in 2025. Economic policy uncertainty, particularly around global trade policies and tariffs, is expected to remain elevated through 2026, potentially affecting investment and trade flows.

The Euro Area is projected to expand at 1.3% in 2026 and 1.4% in 2027. Growth in advanced economies is projected at 1.8% in 2026 and 1.7% in 2027, reflecting moderate expansion. The United States is expected to grow by 2.4% in 2026 and 2% in 2027, supported by fiscal stimulus and easing monetary conditions. Emerging market and developing economies are expected to grow at just above 4% in both 2026 and 2027, supported by domestic demand and policy measures. Chinas economy is projected to grow by 4.5% in 2026, supported by stimulus measures, before moderating to 4% in 2027.

Indian Economy

The Indian economy continued to demonstrate strong and resilient growth during the year, supported by robust domestic demand, sustained public investment, and stable macroeconomic fundamentals. Despite global uncertainties and evolving trade dynamics, the country remained one of the fastest-growing major economies in the world. Growth in FY 2025-26 was driven by strong private consumption, infrastructure spending, and continued momentum in the services sector, while manufacturing and construction also showed improving traction.

Indias real GDP stood at 7.6% in FY 2025-26. Favourable monsoon conditions supported agricultural output and rural demand, contributing to a stable consumption environment. Inflationary pressures also eased significantly, with headline inflation averaging 1.7%, the lowest since the start of the CPI series. The Reserve Bank of India maintained a balanced monetary stance, keeping the repo rate unchanged at 5.50% to support growth while safeguarding financial stability. Policy support remained a key growth driver. Private Final Consumption Expenditure grew 7.6%, up from 5.6% in the previous year, reflecting improvement.

CPI inflation came in at 4.6%, comfortably within the 2-6% target band. Overall, the Indian economy remained well-positioned for sustained growth, underpinned by resilient domestic demand, prudent macroeconomic management, and a continued focus on long-term structural reforms. The GDP details are as under:

Indias macroeconomic fundamentals remain on a solid footing. The growth outlook is positive, underpinned by strong domestic demand, ongoing structural reforms, and a stable macro environment — a credibility reflected in three sovereign rating upgrades during the year. Inflation remains benign and government debt is declining as part of the Union Budget 2026-27s stated fiscal stance.

On the fiscal side, capital expenditure remains a priority to sustain economic momentum, while reforms across tax policy, expenditure management, and investment frameworks continue to support balanced growth. Total resources shared with states are budgeted at Rs. 16.56 lakh crore in Budget Estimate 2026-27. India has also been identified as the third most desirable manufacturing destination globally, with the potential to reach USD 1 trillion in goods exports by 2030.

Initiatives such as Make in India and the PLI schemes are channelling investment into productive capacity, reinforcing Indias broader Viksit Bharat vision of becoming a fully developed economy.

INDUSTRY OVERVIEW & DEVELOPMENTS

The kitchen appliances market encompasses the production and sale of various mechanical and electrical devices designed to aid in food preparation and storage. This industry covers a broad spectrum of products used in kitchen settings — from large units like refrigerators, ovens, and dishwashers to smaller gadgets such as blenders, coffee makers, and food processors — serving both residential and commercial customers.

These appliances draw on multiple energy sources, including electricity, cooking fuel, renewable energy, and solar power, giving consumers the flexibility to choose options that best suit their lifestyles. Products reach end users through several distribution channels, including multi-brand retail stores, specialty shops, brand-exclusive outlets, and e-commerce platforms.

Indian consumers are increasingly gravitating toward convenience-oriented lifestyles, leading to a growing adoption of technology-powered kitchen solutions. Smart kitchen appliances are gaining significant traction in the market. This upward trend is largely fuelled by the steady rise in disposable incomes among Indian households. India is proiected to become the fourth largest market for consumer durables by FY 27, with the sector growing at an 11% CAGR.

PRODUCT SEGMENTATION

From a product standpoint, the market can be divided into large appliances, small appliances, and other categories. The large appliance segment consists of items such as refrigerators, dishwashers, microwaves, cooking hobs, ovens, and kitchen extraction units, among others. Similarly, the small appliance segment covers products like food processors, mixer-grinders, blenders and juicers, coffee machines, kettles, grills, and fryers.

Large Cooking Appliances

The India large cooking appliances market was valued at USD 2.37 Billion in 2025. Large appliances accounted for 68.10% of 2025 revenue, underscoring their anchor role in the India kitchen appliances market. Refrigerators lead the sub-segment, with AI-ready models featuring convertible freezer compartments that fit Indias penchant for bulk produce shopping. Dishwashers, once niche, are on track to cross USD 90 million by 2026. Built-in hobs and chimneys benefit from rapid adoption of modular kitchens in new apartment complexes. The Government has introduced various reforms, such as "Make in India" initiative, to encourage domestic production of large kitchen appliances, which will consequently create employment, strengthen local industries and reduce dependence on imported products. Government LPG subsidies also boost gas-hob replacement cycles, ensuring demand resiliency despite commodity inflation.

Small Cooking Appliances

Small kitchen appliances cater to a diverse range of households, available in manual, semi-automatic, and fully automated variants. Their space-saving design, affordability, and capacity to simplify everyday kitchen tasks have established them as indispensable tools in contemporary homes. The small kitchen appliances market is expected to grow from USD 62.19 billion in 2025 to USD 65.46 billion in 2026 and is forecast to reach USD 84.63 billion by 2031 at 5.27% CAGR over 2026-2031. North America holds a 32.55% share in 2025, while the Asia-Pacific is projected to be the fastest-growing region at a 6.15% CAGR through 2031. The United States Small Kitchen Appliances Market was valued at USD 11.64 billion in 2025 and estimated to grow from USD 12.07 billion in 2026 to reach USD 14.49 billion by 2031, at a CAGR of 3.72% during the forecast period (2026-2031). Regulatory timetables in the United States for dishwashers, microwaves, and refrigerators are advancing replacement cycles ahead of compliance, creates near-term demand even as mature-market saturation weighs on unit sales. The small kitchen appliances market in India is expected to reach a projected revenue of USD 2.85 billion by 2030. The Indian market estimates an 8.88% CAGR through 2031, marking them the fastest-expanding slice of the India kitchen appliances market.

Rapid advancements in AI, IoT, and voice-assisted technology are reshaping the kitchen appliances landscape, enabling smarter, more personalised cooking experiences. Key industry players continue to invest heavily in R&D, launching connected products that align with the growing smart home ecosystem. Air fryers dominate this surge in demand, while electric kettles, toasters, and sandwich makers register strong holiday-season spikes. Multi-cookers with voice-guided recipes and robotic stir-fry devices are broadening access to automated cooking, and health-focussed appliances like cold-press juicers are gaining traction amid rising wellness consciousness among consumers.

In the kitchen appliance market, North America accounted for 31.70% of global revenue in 2025, though the growth is constrained by prolonged housing cycles. Asia-Pacific is set to expand the fastest at 5.42% through 2031 driven by rapid urbanisation and electrification in secondary cities. Demand for eco-friendly home appliances is rising, driven by higher energy costs, supportive government policies, and increasing emphasis on energy efficiency. At the same time, factors such as urbanisation, economic growth, and improving infrastructure continue to support market expansion at both domestic and global levels.

The growth in Indias kitchen appliances market links directly to rapid urbanisation, rising demand for convenient cooking solutions, and ongoing integration of connected-home technologies. Energy-efficiency regulations driving replacements, surge in health-centric cooking trends and appliance-as-a-service & rental models emerging are amongst other key growth drivers. The India kitchen appliances market was valued at USD 11.41 billion in

2025 and estimated to grow from USD 12.22 billion in

2026 to reach USD 17.24 billion by 2031, at a CAGR of 7.12% during the forecast period (2026-2031)

Other Appliances

The markets growth is primarily driven by a growing global emphasis on health and wellness, as non-stick surfaces enable low-fat cooking. Rapid urbanisation, rising disposable incomes, and fast-paced lifestyles further boost demand for time-saving kitchen solutions, where the easy-to-clean nature of non-stick cookware is a major advantage. Demand for pans, pots and whisks that assist in quicker turnaround time without compromising on food quality and presentation is on the rise. The global non-stick cookware market was valued at approximately USD 8.37 billion in 2025 and is projected to grow to USD 16.72 billion by 2034, at a CAGR of 8.27%

GROWTH DRIVERS AND OUTLOOK OF INDIAN KITCHEN APPLIANCES MARKET

Rising Disposable Income: Rising disposable incomes, especially in Tier 1 and Tier 2 cities, are fuelling demand for aesthetically superior kitchen solutions in Indias consumer durables market. As per the Household Consumption Expenditure Survey (HCES) 2023-24 released by the Ministry of Statistics and Programme Implementation, urban monthly per capita expenditure increased to Rs. 6,996 (up ~8% YoY). This translates to an estimated Rs. 50,000-Rs. 52,000 average monthly household consumption, indicating strong discretionary spending capacity. Non-food expenditure now accounts for 60% of urban consumption.

Evolving Lifestyle: Contemporary living patterns have seen a growth in the popularity of modular kitchen designs, which emphasise visual appeal, functionality, and ease of use. This development has, in turn, spurred the creation of sophisticated and inventive kitchen appliances, alongside a greater need for appliances in commercial kitchens.

Increasing participation of women in workforce: As

more women pursue professional ambitions alongside household responsibilities, smart home technology is stepping in to bridge the gap — offering time-saving solutions that make preparing quick, convenient meals at home simpler than ever.

Urbanisation: Rapid urbanisation, busier lifestyles, and the rise of nuclear families are driving demand for compact, time-saving kitchen appliances — from induction cooktops and multi-cookers to compact dishwashers and food processors. Meanwhile, branded

cookware and kitchen accessories have become lifestyle statements, fuelling premiumisation across product categories.

Smart Kitchen Appliances Shift: Innovations in material science have enabled the development of cookware with superior heat distribution, durability, and non-stick performance. The integration of nanotechnology in coating surfaces is enhancing the performance life and safety profile of modern cookware products. Continuous investment in technology and innovation remains central to the Companys strategy for sustaining competitive differentiation.

Surge in Smart Homes: Digital tools including Al-based design simulation and virtual kitchen planners are transforming the consumer buying experience. Smart kitchen appliances and loT-enabled devices are creating new product categories, expanding the addressable market significantly. Homes and kitchens are constantly evolving with technological advancements in appliances.

Surge in demand for Home-cooked Meals: Growing health consciousness, accelerated by the pandemic, has pushed consumers toward home-cooked meals and sparked strong demand for appliances that support healthier preparation — with air fryers, steamers, and blenders gaining popularity for their oil-free, nutrient-preserving capabilities.

Demand for Eco-Friendly Appliances: Rising

environmental awareness is making sustainability a key purchase driver. Consumers are gravitating toward energy-efficient and remotely controlled appliances for better energy management, while growing preference for eco-friendly materials — supported by government initiatives promoting renewable energy and responsible consumption — is collectively boosting demand for greener kitchen solutions.

Rise of Modular Kitchen: Rapid urbanisation has reduced average home sizes, creating a strong demand for smart, space-efficient kitchen solutions. Modular kitchens offer customisable configurations that maximise storage, workflow efficiency, and aesthetic appeal within limited spaces. Growing adoption of nuclear family structures has accelerated the replacement of traditional kitchens with modern modular designs. Real estate developers are increasingly incorporating pre-fitted modular kitchen setups as standard offerings in new residential projects.

Health and Environment Concerns: Growing health and environmental awareness is driving consumers toward safe, non-toxic cookware — accelerating the shift to ceramic, cast iron, and stainless-steel alternatives free from Teflon, PFOA, and BPA. Stricter regulations on food-contact materials are raising industry quality standards, while investment in eco-friendly manufacturing, sustainable packaging, and green R&D is expected to build long-term brand equity.

Growth of E-Commerce and Easy Financing Options:

COMPANY OVERVIEW

Stove Kraft is one of Indias well-established kitchen solutions providers, backed by over two decades of industry experience. The Company has carved out a strong position in the Indian home and kitchen appliance market, particularly in pressure cookers, where it commands a notable presence, as well as in free-standing hobs, cooktops, and non-stick cookware, where it holds a leading market share. Operating out of its headquarters in Bengaluru, Karnataka, Stove Kraft has built an extensive domestic footprint spanning 28 states and 6 Union Territories. On the international front, the Company exports to 14 countries, with exports accounting for 10.7% of its total sales. Its global reach extends across the US, Mexico, Southeast Asian nations, and Gulf countries, and it

has further strengthened its international presence through OEM partnerships in the US and Mexico.

The Company manufactures and sells kitchen and home solutions under three primary brands: Pigeon, Gilma, and BLACK+DECKER. These brands offer a comprehensive range of kitchen and home products, targeting the value, semi-premium, and premium market segments.

Pigeon: This is an award-winning cookware brand with a track record that customers tend to trust. It is the flagship brand of the Company. It expanded its reach by partnering with LPG distributors like Indian Oil and Hindustan Petroleum. For nearly a decade, those tie-ups gave Pigeon a ready-made sales network it didnt have to build from scratch.

Gilma: It is Stove Krafts play for urban,

design-conscious consumers who want more than basic kitchen gear. The brand covers chimneys, hobs, cooktops, sinks, water heaters, and a few lifestyle products — all sold exclusively through franchisee-run Gilma outlets. That controlled retail model keeps the brand experience consistent and margins healthier than mass-market alternatives. A dedicated app for logging and tracking service requests adds another layer of after-sales support.

BLACK+DECKER is Stove Krafts premium offering, enabled through an exclusive brand licensing agreement with Stanley Black & Decker since 2016. Under this arrangement, Stove Kraft acts as the retailer, distributor, and after-sales service provider for BLACK+DECKER appliances in India. The brand caters to premium consumers and offers a wide range of small domestic appliances, including food processors, juicers, blenders, hand mixers, choppers, coffee makers, toasters, sandwich makers, irons, water heaters, and oil-filled radiators. BLACK+DECKER products are sold through a separate premium distribution network spread across around 17 states, with a strong presence in modern retail and online channels.

The Companys distribution network runs on 8 C&F agents and over 600 distributors. Export products move through a separate set of 12 distributors. After-sales is handled in-house, with the Companys own technicians managing end-to-end service. Pigeon, Gilma, and Black+Decker each operate through their own dedicated distribution channels. The Company uses BIZOM to track field sales and service staff in real time. A Distributor Management System (DMS) monitors secondary and tertiary

sales while keeping distributor inventory in check. A centralised CRM handles customer requests, pre-installation support, and after-sales follow-ups. Service requests come in through a central call centre and are routed to the relevant branch based on location.

Retail Outlets

During the financial year 2025-26, the Company expanded its retail presence by opening 67 new stores, bringing the total number of operational outlets to 329 across 151 cities and 22 states in India. There are now 147 stores operating under the Franchisee model. Growth was driven by strong presence in North India increasing PAN-India footprint. The Company plans to establish around 100 additional retail stores nationwide, including expansions into new states every year. These stores will offer a complete range of products marketed under the Pigeon brand, including cookware, cooktops and small appliances.

Manufacturing Units

Stove Kraft operates two ISO 9001:2015 certified manufacturing facilities — a larger one in Bengaluru, Karnataka and another in Baddi, Himachal Pradesh. The Bengaluru plant spans roughly 53 acres, with about one acre kept aside for future expansion. Both facilities are highly backward integrated, helping it to overcome supply disruptions due to macro-economic or geo-political events across globe. The investment in last five years on setting-up backward integrated manufacturing units was to overcome supply disruptions and improve gross margins and flexibility to address consumer demand. Quality is embedded at every stage — from raw material sourcing and product development through to the final manufacturing stage — and is subject to rigorous review and monitoring . On the R&D side, a dedicated in-house team works alongside foreign technology partners to drive product development. Supporting this is a sourcing and quality assurance team based in China. Taken together, the setup gives Stove Kraft a fair degree of control over both quality and costs across its production process.

Stove Kraft has signed a supply partnership with IKEA to develop and supply cookware for its global store network. To support this, the Company has built a dedicated 1,80,000 sq ft manufacturing facility in Harohalli, Karnataka. The tie-up fits into Stove Krafts broader push to grow its international presence. The business is expected to commence shortly, meaningful revenue contribution for which will be seen in the coming years. IKEA with its global presence beyond the US continues to offer strong long-term growth potential.

The Bengaluru facility produces a wide range of products — pressure cookers, non-stick and hard anodised cookware, mixer grinders, induction cooktops, LPG stoves, glass cooktops, OTGs, microwave ovens, cast iron and ceramic cookware, vegetable choppers, etc. The Company has also begun manufacturing several small appliances domestically that were previously imported from China, a shift that has helped widen its reach in the Indian market.

Adjacent to the factory and registered office, Stove Kraft also operates a 1.20 lakh sq ft warehouse on 2.75 acres, with a storage capacity of around 25,500 pallet positions — enough to cover the Companys ongoing warehousing needs.

At the Bengaluru facility, the Company has established supplementary plants as part of its strategy for backward integration. These additional units are involved in the production of glass lids, weight valves, vent tubes, and gaskets.

The Company has a Cast Iron Foundry at Harohalli factory. It is an automated production line capable of producing a wide range of Cast Iron Cookwares and high-quality cast iron components. The Foundrys current installed capacity is 2.2 million pieces per annum and has been designed to reach 4.4 million pieces per annum in future.

Further, Stove Kraft began manufacturing and selling kitchen chimneys from its own plant in Q1 FY26. We are moving into a market where penetration for this product category remains low with limited domestic manufacturers. In 2026, Chimney has been put under QCO (Quality Control Order) where BIS become mandatory for brand to sell in India . This restriction has given added advantage to Stove Kraft over others. The business is still in very nascent stage and the Company currently produces a limited range, and building full stake manufacturing setup for all kinds of Chimney which is expected to take around a year. The total chimney market is estimated at Rs. 5,000-7,000 crore, and most of the handful of domestic players that do exist rely on SKD (semi-knocked down) assembly rather than full in-house manufacturing. Stove Krafts move toward complete in-house production positions its products for masses in a market that still has significant room to grow and creating new consumer segment in coming years.

The Baddi facility manufactures Inner Lid Cookers. Stove Kraft runs a dedicated in-house R&D facility focussed on ongoing technology development.

Its manufacturing operations are highly backward integrated — the facilities produce most of the components they need, including bakelite handles, sheet metal parts, moulded components, die-cast parts, moulds, dies, and fixtures, reducing dependence on outside suppliers and OEMs. Quality is monitored closely at every stage, from raw material sourcing through product development and final manufacturing. The Company also maintains a sourcing and quality assurance team in China to support procurement and production standards.

COMPANY STRENGTHS

• Stove Kraft offers a comprehensive range of kitchen and home appliances across price points and categories — from cookware and pressure cookers to small appliances and built-ins — serving consumers across mass, semi-premium, and premium segments through a single, trusted platform.

• The Company has built strong brand equity through targeted marketing campaigns, including the Pigeon "Balancing Gender Roles at Home" initiative, which has deepened consumer connect and reinforced the brands relevance with modern households.

• A robust new product pipeline, including chimney manufacturing, cast iron cookware, CERACLAD cookware, instant water heaters, and cordless irons, reflects the Companys ongoing focus on premiumisation and in-house innovation.

• Backward integration across key product lines — including kettles, cast iron cookware, and pressure cookers — strengthens the Companys cost structure, supports margin improvement, and reduces reliance on external suppliers and OEMs.

• The Companys multi-channel distribution network spans general trade, modern trade, e-commerce, quick commerce, and over 329 exclusive brand stores across 22 states and 151 cities, supported by a dedicated in-house after-sales service team.

• E-commerce continues to grow as a key channel, contributing around 34-41% of revenues, reflecting the Companys ability to capture demand across both online and offline retail formats.

• The Company is led by a professional management team with deep industry experience, supported by a board focussed on long-term value creation through premiumisation, retail expansion, and global partnerships such as IKEA.

OPERATIONAL AND FINANCIAL PERFORMANCE

The Companys revenue from operations reached Rs. 16,074 million for FY 2025-26 compared to Rs. 14,498 million in FY 2024-25, representing a growth of 10.9% driven by strong demand for kitchen appliances. EBITDA has increased to Rs. 1,661 million in FY 2025-26 compared to Rs. 1,507 million in FY 2024-25 registering a growth of 10.3% [excluding other income and other gains / (losses)]. Profit After Tax has increased to Rs. 420 million in FY 2025-26 compared to Rs. 385 million in FY 2024-25 registering a growth of 9.1%. Company significantly reduced the debt to Rs. 271 million (Excluding Lease liabilities and Financial liabilities towards sale and lease back and including Bank balances other than cash and cash equivalents) during the year (PY Rs. 1,944 million) due to enhanced revenue, with Sales & Lease Back arrangement and improved working capital cycle. Pigeon Retail outlets continued strong momentum during the year as Company reached 329 stores, across 22 states and 151 cities/towns. Modern trade and exclusive brand stores delivered double-digit YoY growth. The growth in export revenue was comparatively less than other channels mainly due to US tariff uncertainty. During the period under review, the e-commerce channel saw a growth of 14%, Retail by 52%, OEM Exports by 8%, MR grew by 19% and Corporate Sales by 19%. FY 26 saw a significant volume growth of 32% in small appliances, 14% in pressure cookers and 12% in Induction Cooktops.

Stove Kraft has kept up a steady pace of new product launches under the Pigeon brand, spanning kitchen appliances and lifestyle categories. Recent additions include the Tesla Electric Kettle, Pure Slow Juicer, Nutri Blender, Idiyappam Maker, All Clad Tri-Ply Pressure Cooker, CERACLAD cookware, instant water heater, cordless dry iron, and personal care products like a Hair Trimmer and Electric Cleaning Brush. The expanding portfolio increases consumer touchpoints, supports wallet share, and reinforces Pigeons positioning as a full-range household brand rather than a single-category player.

Despite headwinds from US tariff uncertainty weighing on export growth, rising aluminium prices pushing up input costs, policy-led channel disruptions such as the GST transition, and intensifying competition in cookware and appliances, Stove Krafts operations continued to expand across general trade, e-commerce, modern trade, and exclusive retail outlets — all of which recorded growth during the year. The Company has also made deliberate progress in reducing import dependence, which has helped improve profit margins and working capital efficiency.

The gross margin for the fiscal year stood at 38.7% (PY 38.1%) while EBITDA margin stood at 10.3% (PY 10.4%). The PAT margin stood at 2.6% compared to 2.7% in FY 2024-25. The ROCE stood at 11.24% compared to 9.58% in previous year. The Companys net debt as on March 31, 2026 stood at Rs. 271.16 million (Excluding Lease liabilities and Financial liabilities towards sale and lease back and including Bank balances other than cash and cash equivalents) with working capital of 23 days compared to 64 days in FY 2024-25. Please also refer Note 45 of Notes to Financial Statements for more information on other ratios.

RISK MANAGEMENT

Stove Kraft has a structured risk management framework embedded into its strategy and planning process. Risks are categorised as transactional, strategic, and external, with dedicated mitigation approaches for each. Internal and statutory auditors regularly review controls, while specific individuals are assigned ownership of risk mitigation plans. A Risk Management Committee, formed in line with SEBI listing requirements, oversees the identification and management of external and strategic risks. The various external and strategic risks are listed below:

HUMAN RESOURCES

The Company places considerable emphasis on its people, with HR practices built around transparency, clear performance frameworks, and a workplace culture that encourages collaboration across all levels. A notable aspect of the companys workforce is its gender composition — 55% of employees are female, reflecting a genuine commitment to inclusion. Workplace safety and employee wellbeing are treated as operational priorities, given their direct link to productivity and engagement. The Company views a skilled and motivated workforce as a meaningful driver of growth, with strong people practices underpinning its broader operational and innovation agenda. As of 31 March 2026, the Company had 5,543 permanent employees.

INTERNAL CONTROLS

The Companys internal financial controls are designed to ensure reliable financial reporting, regulatory compliance, asset protection, and proper transaction authorisation. The framework is underpinned by continuous monitoring of process controls and the risk management system, enabling the Company to stay on top of revenue leakages, fraud, and other irregularities. The Companys internal control systems and internal audit functions are suitable and relevant to the nature and scale of its operations.

The Audit Committee reviews internal audit reports quarterly and approves the annual audit plan. Day-to-day financial operations run on SAP S4 HANA, which provides integrated transactional controls and

maintains accurate accounting records. Robust IT systems are in place to protect sensitive data, and Management Information Systems (MIS) support timely reporting of key financial metrics.

Internal audits are conducted by an independent external firm, with findings reviewed regularly by management and the Audit Committee. All transactions are recorded in line with applicable Accounting Standards. The internal control framework is periodically reviewed and refined to stay aligned with the Companys scale and objectives, reflecting its broader commitment to governance and financial discipline.

OUTLOOK

The Company holds a constructive long-term view on the home and kitchen appliance sector, backed by a well-recognised market position, consumer-driven product development, and

integrated manufacturing capabilities.

Retail expansion is a key priority, with the Company scaling its exclusive store network through an asset-light franchisee model — targeting 100 new stores every year — with a particular focus on underpenetrated markets in North and West India. New product launches continue to broaden the Pigeon portfolio across appliances, cookware, and lifestyle categories, supported by more targeted marketing campaigns that strengthen brand recall and consumer engagement.

On the manufacturing side, growing in-house production capabilities are progressively reducing import dependence, supporting better margins and working capital efficiency. This aligns well with government initiatives such as Make in India, Pradhan Mantri Ujjwala Yojana, and the 100% FDI allowance

in electronic hardware manufacturing — all of which provide structural tailwinds for domestic players like Stove Kraft.

The Company believes it is entering a high-growth phase driven by several converging levers. The GST rate cut — moving roughly 35% of the portfolio from 12% to 5% — is a meaningful volume catalyst that improves affordability and widens the consumer base. Premiumisation is gaining traction, with value growth outpacing volume growth as consumers trade up. The IKEA partnership and a recovering export pipeline point to international scale-up in the coming years.

Over the longer term, management is focussed on improving returns, with ROCE and ROE targeted at around 20%, driven by margin expansion, working capital efficiency, and disciplined capital allocation as the capex cycle winds down. With established brands, a growing retail footprint, and an increasingly self-reliant manufacturing base, Stove Kraft is well placed to capitalise on the sectors growth potential and deliver value to all stakeholders.

CAUTIONARY STATEMENT

Statements in the management discussion and analysis report describing the Companys objectives, projections, estimates and expectations may be "forward-looking statements" within the meaning of applicable laws and regulations and futuristic in nature. Actual performance may differ materially from those either expressed or implied. Such statements represent intentions of the management and the efforts put into releasing certain goals. The success in realising these depends on various factors both internal and external. Investors, therefore, are requested to make their own independent judgements before taking any investment decisions.