Stove Kraft Ltd (NSE: STOVEKRAFT) Q1 2026 Earnings Call dated Aug. 05, 2025
Corporate Participants:
Unidentified Speaker
Rajendra Gandhi — Managing Director
Analysts:
Shreyansh Jain — Analyst
Unidentified Participant
Natik — Analyst
Ashwin Agarwal — Analyst
Presentation:
Operator
Ladies and gentlemen, you’ve been connected to the Stowecraft Limited Q1 FY ’26 Earnings Conference Call. Please stay connected. The call will begin shortly. ladies and gentlemen, good day and welcome to the Stocraft Limited Q1 FY ’26 Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need a system during the conference call, please signal an operator by pressing star than zero on your touchstone phone. Please note that this conference is being recorded.
Unidentified Speaker
I now hand the conference over to Mr Path Patel from MUFG Intime. Thank you, and over to you, Mr Patel. Thank you thank you and good afternoon. On behalf of MUFG In Time, I welcome you all to Limited Q1 FY ’26 Earnings conference call. Today on the call, we have Mr Rajendra Gandhi, Managing Director; Mr Rama Krishna, Chief Financial Officer; and Mr Himan Kothari, Vice-President, Investor Relations. Before we begin the call, I would like to give a short disclaimer. This call may contain some of the forward-looking statements, which are completely based upon our belief, opinion, expectations as of today. Such statements are not a guarantee of our future performance and involve unforeseeable risks and uncertainties. And with this, I would like to hand over the call to Mr Gandhi. Over to you, sir.
Rajendra Gandhi — Managing Director
Thank you. Very good afternoon, ladies and gentlemen, and thank you very much for attending our Q1 FY ’26 earnings call. A detailed presentation and a press release of our quarterly performance has been uploaded on our website. And I hope everybody had an opportunity to go through them. Despite recent disruptions due to tariff developments between the United States and India, the geopolitical situation with neighboring country, our exports and domestic market has broadly remained stable for us. We are pleased to report a robust performance in-quarter one FY ’26, reflecting our operational leverage and reflects resilience of manufacturing capabilities, which we have strengthened over the last four years.
Looking ahead, our multichannel outlook is robust. Quick commerce, which we entered recently is gaining meaningful traction, while e-commerce, traditional retail outlets and modern trade continued to deliver steady growth. We believe these dynamics will position us for an accelerated growth trajectory in the quarters ahead. Channel mix in Q1 was 32% from e-commerce, 26% from BT, 12% from modern trade, 3% from corporate/institution sales, 20% from our OEM exports and 7% from our own-retail.
All the major channels reported growth over the year-on-year basis, indicating strong widespread demand and successful brand traction. This robust broad-based growth across channels implies consumer acceptance of our products. Moving towards development, which took place in Q1, we are in continuation from Q4. We have begun manufacturing and selling chimneys, kitchen chimneys from our own plant. With chimney penetration in India still in single-digits and only a handful of serious domestic players, this market offers a substantial white space opportunity. Our in-house production capability backed by distribution and retail strength uniquely positions us to capture this underserved segment and meet the rising demand for quality ventilation solutions. We are expecting me to become a significant growth driver in the coming quarters. Our cast started showing traction in revenue in-quarter one. Quarter one, we are able to generate a revenue of $177 million, which is improving quarter-on-quarter.
In export, we are working with a few US and UK. Based players and on few new product categories, which we will able to communicate when we are able to reach at some maturity stage. However, export markets also look promising with respect to demand from India manufactured products is concerned. In The current quarter, increased production volumes of our new range of kettles and and footwear, both of which are fully backward integrated and manufactured in-house have contributed to margin improvement through enhanced operational leverage. We expect this positive trend to continue and further strengthen our performance in the subsequent quarters. We also rolled-out our balancing gender rose at-home camping under the pigeon Appliances Banner made-for every hand at-home. This initiative spotlights how our electric pressure cookers, air fries, OTG and vacuum cleaners enable partners to share cooking and cleaning from quick weeknight means to routine chores effortlessly and fairly. We have received early traction for the campaign on social and in-store platforms, underscoring its resonance, strengthening our brand’s emotional connect and commitment to modern equitable homes. With the upcoming season and revival of rural demand due to healthy monsoon this year, we are optimistic about delivering stronger performance in coming quarters. We are witnessing positive momentum in our margins compared to the previous year, accompanied by an improvement in PAT resulting in improvement on ROC, ROE. Now I will discuss the Q1Q FY ’26 financial and operational performance. Revenue for quarter was INR340.1 crore, registering a growth of 8.2% Y-o-Y and 8.7% Q-o-Q, growing at 7.3% CAGR for the last four years. Growth for the quarter is mainly from e-com, retail, modern retail and export channels. Gross margins have improved by 13 basis-points compared to the same-period last year. Gross margin also registered a growth of 8.5% Y-o-Y and 7.9% Q-o-Q, reflecting strength of our manufacturing capability. In last four years, our gross margin has significantly improved by 12.9% CAGR. EBITDA has improved by-40 basis-points compared to the same-period last year and 106 basis-points compared to the last quarter. EBITDA stands at 10.5% in-quarter one FY ’26, reducing a growth of 12.5% Y-o-Y and 20.9% Q-o-Q. PAT has improved by 46 basis-points compared to the same-period last year and 260 basis-points compared to the last quarter. PAT stands at 3.1% in-quarter one FY ’26, registering a growth of 27.2% Y-o-Y and 620.5% Q-o-Q, withstanding our self-sufficiency strategy to overcome supply disruption due to global disruption will help us to improve returns. In the current quarter, we saw a strong positive momentum driven by export growth of 14% compared to-Q1 FY ’25. Our exports now reaching 20% of the total revenue for the quarter. So in-quarter one FY ’26, we have opened 19 new stores in 18 new cities. Currently, we are operating in 19 states and 110 cities, which has helped us drive diversification, ensure sustainable growth and enhance branch presence across key markets. We are actively working to reduce risk concentration by opening most of the new stores in North and West India. Now I would request the moderator to open the floor for question-and-answers. Thank you. Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press and one on your touchstone telephone.
Questions and Answers:
Rajendra Gandhi
If you wish to remove yourself from the question queue, you may press R&2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles the first question is from the line of Shreyansh Jain from Swan Investments. Please proceed.
Shreyansh Jain
Hello. Am I audible? Yes, sir. Hi, good evening, sir, and congratulations for a good set. So I’m just trying to understand the kind of traction that we’ve seen in Q1. Do we intend to increase our growth guidance and how is the market looking for you, say pre-festive for Q2 and Q3, sir. So generally as you’ll all be aware that our business. Hello, hello. Yeah, you can hear me, sir.
Rajendra Gandhi
Yes, sir. Yeah. As you are — as you are aware, the first-quarter for us and the last quarter are softer quarters compared to the second and 3rd-quarter. The second and 3rd-quarter involved lot of festivals and various season sales. Obviously, these two quarters are the major quarters that contribute to our revenues. And to answer your question, yes, we are seeing improved growth in the beginning of this quarter. So we hope that we’ll be able to deliver higher-growth.
Shreyansh Jain
Okay. And sir, second question is when we are moving up the value chain, say from you moving to cast iron cocoa and cocoa, so what kind of gross margin improvement is there in the product category, say, when you move from a PTFC coated cookwear to a ceramic or a dry ply or a cast iron sir.
Rajendra Gandhi
Definitely, they are positive to our margins compared to the existing cookwear. Definitely the cast iron offers a better opportunity because we are fully-integrated plant manufacturing this and automated line. Definitely, we stand to gain on that capability and the product definitely can command a better price in the market. So with this, definitely there is a — that’s where it gives us our confidence on improving on our gross margins for the company as a whole. Some of the confidence is also coming from these categories.
Shreyansh Jain
Okay. So if we can quantify, say, over the next two years because of this product mix change, what kind of gross margin improvement can we anticipate? In the last four years, we have moved from going down to 32.5% to — we are now at around 38%. We believe that the steady-state will be able to get to 40%.
Rajendra Gandhi
Okay. Okay, okay.
Shreyansh Jain
And sir, if I look at your presentation, there is one-line on Slide number nine. Depreciation is rationalized due to change in estimates. Can you explain this? What does — what does this mean and will the current depreciation for this quarter now continue for the whole year or can you explain, please?
Unidentified Speaker
Yeah. And, I explained we have retail stores channel where we have — we enter into these arrangements with landlords. So that life of the lease term is reestimated as per India 116. And then currently, it was nine years. So we have brought down to three years based on the estimate. And yes, the second question is whether this will continue. Yes, this will continue for the — throughout the year. And sir, any reason for this change in estimates from bringing it down to three years from nine years.
Rajendra Gandhi
Yeah, our tie-up with the landlords is actually we have a three-year auto renewal agreement with the landlords and based on the guidance of our auditors because we don’t have a lock-in period with our landlords. We are — we can actually — it’s a locked-in for the landlord, but no lock-in for the company. We are — we are free-to vacate any store three months notice. So with that guidance and with the requirement of the, we are now de-estimated that. And going-forward, as said, the — both the interest and depreciation that accounts for the lease of lease accounting of the stores will remain at the level that we are.
Shreyansh Jain
Okay. And sir, just wanted to understand where our retail stores we have opened, we have opened in the last three years, how has the performance been for our channel in a similar market? What is the kind of de-growths that they would have seen and any cannibalization that we would have seen because most of the stores operate in a similar market, right? So if we are opening our own-retail stores, we will tend to actually cannibalize the GT and obviously the channel would see some degrowth there, right? So what is — can you give us some sense there?
Rajendra Gandhi
I think it does really impact like that. In fact, the presence of our stores gives an opportunity for us to actually show our customers the entire range of products that we offer. Generally, whether it is the modern trade or the general trade GTE channel, none of the stores will be able to display these products. We have wherever we have seen the maturity stage of these stores, we have seen that our business when you sum-up both the general trade and the retail stores has almost doubled. So it’s not that it has cannibalized anyway.
Definitely, we are seeing not high-growth in general trade. This is a — I think this is industry phenomenon because also we are present in all the channels. We have eventually everywhere from the GT. Initially when I mean before the advent of all these channels, there is only one channel called the GT for us. So to answer your question, it is not cannibalizing, it is helping us, but definitely there is not high-growth in the GT channel.
Shreyansh Jain
Okay. Sir, one Question on exports. So now from 7th August, this 25% tariff gets implemented for exports to the US, right? So what’s our understanding with our customers now who bears that additional tariffs and what is — what is the understanding with our clients, sir?
Rajendra Gandhi
All our exports are on FOB basis, including freight or tariff is borne by our customers. But I want to tell you, one of our largest customers, they are very committed to import — I mean build their imports from India from a current base to three times of the current number. So that commitment continues. That’s what we have had discussions with them post this news on the tariff. They are committed to build the business from India and definitely, of course, that continues the same for. So this is from one of our largest customers. But to answer your question, all tariffs or any custom duties are paid by the customer and not by us.
We are not a brand. These are OEM goods. We manufactured it. These are white-label for us. It is based on the price that is agreed-upon and all our exports are FOB.
Shreyansh Jain
Okay. Okay. All right. So the kind of guidance that we’ve given on exports in the previous two quarters is maintained, right? We believe exports can grow at 20% 25%. No, we believe our exports will grow higher of that percentage.
Rajendra Gandhi
Last year, we were approximately around INR160 crores. We — for the whole year, we believe we’ll be still able to grow at 50%.
Shreyansh Jain
Okay, that’s great. Sir, just last question on the key okay. I’ll get back-in the queue. Thanks.
Operator
Thank you. The next question is from the line of from Equitree Capital. Please proceed.
Unidentified Participant
Yes, sir. A couple of questions from my side. Sir, could you give us a — like there hasn’t been any volume growth in some of your products, especially the smaller plant, which has been one of the fastest-growing category. So where-is the company lacking? Is this because of the competition or any other reason? And how do you see the overall volume growth for the full-year? And in addition to that, also reliance on also getting into the smaller plans by acquiring. So how do you see that competitive environment?
Rajendra Gandhi
Some of the low-value products that we classify as appliances versus what we are able to say, I mean grow in our large-value appliances is what is giving you that number degrowth in volume, but in actual terms, in value, we are continuing to grow highest on our appliances category. That is because of any price hike or just addition of new products? Some new products not majority from hike. It is a product category which is a high ASP, which is growing faster. And there are one of the category where we classify as appliances chopper, which is a low-value product in the range of INR100, INR150. There we are seeing a little de-growth over the more, what we call electric choppers and such things. So that’s why that number looks little skewed on the volume. Otherwise, value growth continues to be there and we are seeing good growth on our appliances. And what kind of volume growth do you envisage for the full-year the revenue. If you go by the categories that we are growing, we — in our opinion, we are in the range of 12% to 13% growth on the volume.
So this does not give you the right picture for one or two items that are of low-value and our focus is to build higher ASP products. That is why because the way we account it by number of units and that’s where I think it is giving a little skewed the picture. And for the full-year, you maintain your EBITDA margin guidance of 11% or this can further yeah, in the appliances, we believe we’ll be able to grow between that 11%, 12%. Oh no, on the margin front, EBITDA margins, full-year guidance, oh, sorry. Yeah, we will improve by 1% at least over the last year, for the whole year.
Unidentified Participant
Okay. And can you repeat the breakup of the revenue channel-wise? I missed all that
Rajendra Gandhi
Hello, yeah, yeah, just let’s just be. I think was growth you. GP is 26%, e-com 32%, modern retail is 12%, corporate sales is 3%, retail is 7% and OEM exports is 20%.
Unidentified Participant
Okay. Thank you.
Operator
Thank you. The next question is from the line of Natik from NB Alpha. Please proceed.
Natik
Hi, sir. Thanks for taking my questions. Sir, my first question is, when I look at our numbers for the last two years, we have seen a growth rate of only 6% and we have seen similar or lesser growth of the competition also. So I just wanted to understand what exactly has been playing out in the last two years. I mean, is this because of increase in competition? Is the demand slowed down or what exactly is sort of going on in the past two years? What has went wrong in past two years?
Rajendra Gandhi
In the case of, it could be multiple things, of course, it’s also including some challenges that we had with other brands, see, we were importing the complete range of black and products. We were also in the LED lighting business. These two taken a little — we have offset the revenues growth from there. LED continues to — on the ASP value is continuing to go down. So even our volumes grow, our revenues are not growing. So we have a capped growth on our LED business. On, we are importing 100% of this. There has been a disruption in the overall completely built units import, BAS has brought that restriction, but it has given advantage to the overall company’s strategy of building manufacturing in the — within our facilities.
Having said that, there was a high-growth during the COVID times and I think the base, I mean, we are comparing if it’s a larger base. And I think that period of our correcting is over, we will — you will probably see — start seeing higher-growth going-forward. The last two years have taken care of all, I mean setting the base right, I can say. Going-forward, you’ll see similar growth that we were experienced in the past. And particularly during COVID in the business that we are, the cooking took synthesis and this — there was very-high growth. So I can say that now you will see — if you rationalize the growth for the last five years, we’ll get back to that 12%, 15% growth. Right.
Natik
Got it, sir. Sir, second question is on GT as a channel, we have seen decline consistently and now we are standing at 26%, which used to be 30% plus, you know a couple of years ago. So just wanted to understand where does this, you know GT as a channel settle and you know, or do we expect it to continuously decline more?
Rajendra Gandhi
No, as a channel, we will continue to be at the same level or improve a little bit, but our growth in other channels are relatively very-high. Example, we are seeing very-high growth in the three major channels for us, e-commerce, our own-retail and exports. The growth is far higher than the company’s growth rate. So obviously, because of the contribution from these three channels being very-high, you are seeing the contribution from — because it is muted there in GT, you see that it is very low. Otherwise, it is actually that other channels are growing very fast. We believe, of course, this will continue to be in the near-term grow faster than the company’s growth rate. All these three channels, our own-retail is growing upwards of 50%. We believe export also will grow at the trade for the near-term and then e-commerce is growing at a much faster rate than the other channels.
Natik
Right. Sir, my next question is on exports. Now do we — do we expect exports to keep on growing even on a quarter-on-quarter basis because last two years what we have seen is 1Q and 2Q usually do better and then the exports sort of do not hold-up to the 1Q number. So is there any seasonality in that or and do we expect 2Q?
Rajendra Gandhi
Now with our addition of new products and new customers, I think going-forward, that’s what is getting corrected. Apart from the first two quarters, given the third and 4th-quarter, this year you will see that export will more or less be at the same level quarter-on-quarter.
Natik
Okay. And sir, last question is if you could give the number of the nice EBITDA that we take during the quarter. Can you please repeat pre EBITDA for the quarter? This is base EBITDA in that segment. Can you repeat once I can say?
Unidentified Speaker
So the pre-IndAS EBITDA number, so EBITDA post India number. So FX is about INR8 crores. So additional impact of
Unidentified Speaker
The IndAS effect is INR1 crore, but that is also will not have any effect in EBITDA, that is below EBITDA.
Rajendra Gandhi
Yeah, there is below EBITDA now.
Natik
What is the rental cost if I can replace the question, rental cost for the quarter, the actual rent.
Rajendra Gandhi
Okay, we’ll give you this number exactly. We’ll — before this call, we’ll give you the rental cost
Natik
. Sure. Sure. That’s it from my side, sir. Thank you.
Operator
Thank you. The next question is from the line of Anand from. Please proceed.
Unidentified Participant
Yeah. Sir, good evening. Congratulations on good results. Sir, the growth guidance for export is 40% to 50%, if I understand it correctly. We have grown by 20% in the first-quarter. Which quarter you think the growth will catch-up in second-quarter or later how good evening, actually that is what I was trying to explain
Rajendra Gandhi
. This generally our first and second-quarter would be larger and then followed by 3rd-quarter being a little softer. You will continue to see similar kind of numbers for all the four quarters. And to give you a guidance on our export, the last quarter will give you the run-rate for the future — future quarters. So currently we are at about INR60 crores per quarter. It is because the mix of additional products and new customers more put together. So this over the year, you will see a continuous contribution coming from exports every quarter.
Unidentified Participant
Okay. Just to clarify, last year, we did INR160 crores, sir. Yeah, around that INR160 crores. Okay. And first-quarter we have done INR60 crores. You’re right, sir. And now we will do INR60 crores per quarter is the run-rate which we are doing the range of INR60 crores in the range of INR60 crores every quarter. Okay. And the first-quarter export growth is 20%.
Rajendra Gandhi
Yeah, the first-quarter export growth is around 20%, yes. Okay. We had a good base for the same quarter last year.
Unidentified Participant
Okay, understood. So base would be lower in either second, third or 4th-quarter as the case
Rajendra Gandhi
May be to A, yes.
Unidentified Participant
Okay. Sir, second question was your IKEA order was supposed to crystallize from December of this year October. So logically the coming quarter export number should be in-line with that, sir.
Rajendra Gandhi
The plant is getting ready happen ready and all those process and procedures that IKEA would want to do. We are in-line with the plan that we set-out with. And with that, we should be able to start dispatching goods from December, yes.
Unidentified Participant
So in that case, sir, the INR60 crore number can be higher for the 4th-quarter or it would be INR60 crores.
Rajendra Gandhi
I can say that this year we will grow by 50% and then we are in that range. We are very confident. Of course, all the growth is also coming because of addition of new customers and new products. That of course includes IKEA. And it’s a beginning of that business with them. IKEA once established then grows at a very clearly pace. It is already normal.
Unidentified Participant
Okay. So sir, the benefit of eye care will come largely in FY ’27.
Rajendra Gandhi
Yeah, more or less is where you will see a very big jump from — because we have set-up a large facility, it is in anticipation and understanding of the large business.
Unidentified Participant
26 ’27,
Rajendra Gandhi
When we are now in FY ’26 already. FY ’24 next year the beginning will be the next year FY ’27 and ’28 is where you see the full-blown business of IKEA
Unidentified Participant
. Okay. And sir, one last question — one question related to IKA, sir. What can be the estimated number for FY ’27 or,
Rajendra Gandhi
I’ll tell you that there is a very good opportunity with IKEA. This is a global retail network and it is not impacted by any one country geopolitical situation and that is the advantage. And how works is they take a lot of time in establishing the relationship process, compliances and quality requirements. But once they are set, then the relationship lasts for very long. And for them, it is in their interest that they build the business with their — this relationship that build because they also invest a lot of time and effort and money to build this relationship, to make the business multifold of what they begin with. I can give you that much of guidance. The opportunity is huge. We let us travel that period to get there.
Unidentified Participant
Sure, sir. Sir, another question is, our export — our capex guidance is not big for this year and
Rajendra Gandhi
We have almost completed all the capex requirement. All the concluding capex is happening, but it’s not very large. And with this, we are — we have completed all the planned capex for the last four years. There could be maintenance capex going-forward, but otherwise, we don’t have any new capex plans at the moment. They are concluding things that are happening now.
Unidentified Participant
Okay. So sir, the cash-flow generation for this financial year would be upwards of INR120 crores INR130 crores. So do you think we’ll be able to do — become debt-free by the end of this year, sir?
Rajendra Gandhi
If not that way, all this cash-flow will be plugged back to our working capital and obviously that will bring our debt levels to that much less. It will be very close to that. It may not be absolutely that it could also be if we are able to do better than what we anticipate to do. At the moment, things — I mean business seems to be very robust and is promising for higher-growth. Okay. And what is the net-debt sir currently on the balance sheet as on June transaction about net-debt is totally right. No, just no interest impact. Here at the moment, Anand, I’ll give you that number.
Unidentified Participant
One last question. As you guided that long-term in next one or two years, you would be for 40% gross margin. Is that assessment correct, sir?
Rajendra Gandhi
You are right. In the next three years, that’s where we want to get there. We are definitely going to increase our last year’s 38% in this year. We believe we’ll be able to improve by at least 1%. The net-debt is around INR220 crores, sir.
Unidentified Participant
Okay, it was INR140 crore in the month of March quarter.
Unidentified Speaker
No, not there for 19
Unidentified Participant
, it would be — I don’t know, INR195 crore.
Rajendra Gandhi
It was INR195 has gone up to INR226 in the first-quarter 20, you will see an improvement in the so INR195 INR25 crores has gone up. That could also be because we don’t borrow for any of our capex.
Unidentified Participant
Understood. The maintenance capex has already been not only maintenance capex. We are at the concluding end of our capex. There’ll be several payments that will be not necessarily in after the installation and such things. So you will see now continuously start seeing an improvement in our debt that is reducing in our net-debt. Okay. But sir, one last question is with your permission, sir. So since 40% gross margin you are saying, we may see upwards of 12% EBITDA for next year, sir. Sir, we are in-full control of our costs
Rajendra Gandhi
. Definitely the opportunity is succeed now. So any improvement on our gross margins will have a better positive impact on EBITDA. Definitely an improvement of 1% on our gross margins will improve our EBITDA by a little more than 1%.
Unidentified Participant
Okay. Understood, sir. Thank you, sir. Thanks a lot.
Operator
Thank you. The next question is from the line of Ashwin Agarwal from Advisors LLP. Please proceed.
Ashwin Agarwal
Good afternoon,. Congratulations, very good numbers. Just digging a little bit deeper on exports. What I’m hearing from some of the other people in the exports business. They are also saying that where our goods are on an FOB basis, we are not seeing any impact because of either the shipping rates or because of duties, but clients are coming back and saying, please give us some discount and we will compensate you with higher volumes. Are those conversations happening at your end or your concept is completely cost-plus and none — there is no negotiation taking place?
Rajendra Gandhi
Honestly, of course, there’s a lot of — it will not be very palatable to you. Our exports are very competitive and it is not that — and with the — over the years, we have, I mean a better degree of manufacturing, which has given us the cost advantages and which we have passed on to the consumer — to the customers. Even if there is some price impact because of duty, it is not that we have room for reducing your cost, not that the customer — see, the customers are liberty to buy from anywhere.
We will have no reason to pay you more. But it is not that the products that we are currently already having an arrangement for supply, they are at a very huge advantage to the customer. This is what we believe and this is what the fact remains. So even if no customer will not want to have a discount, but we don’t have such conversations. We don’t entertain such conversations.
Ashwin Agarwal
Okay. And sir, the big increase that we are seeing in the value versus volume in non-stick cookware on Page 7, that’s entirely because of your new plant for Caspan or is there something else to add?
Rajendra Gandhi
Primarily — Primarily it is all because of the 7 and we are moving to ceramic. There are two, particularly the and has a huge — both on margin is a positive. And by ASP is — I mean, much more than the basic. So obviously because that you will see a little drop-in numbers, but by value there will be growth and we are also getting into the apart from the. All these three are relatively highest ASP products compared to the basic nons footwear. Y
Ashwin Agarwal
Eah. And sir, you know in our conversations earlier you had mentioned that last couple of years are very difficult for domestic retail for a variety of reasons, including you know, lower support, cash support from government in various schemes and so on and so forth. And if I look at your 12% to 13% revenue growth and if I back-out the export growth from there, then the domestic growth, even this year you are forecasting it to be somewhere in the region of 4% to 5%. So the domestic demand in your estimate continues to be sluggish. Is that fair
Rajendra Gandhi
No, I think the domestic business growth in the range of 10% and our export growth could be higher than that. So in overall, we’ll grow higher than this double-digit. But the domestic growth, we believe can grow at the current level that it is, there is no depth of demand. We are seeing good demand in the market in all our channels. I again explained to you on the GT. GT is not growing at the pace that the other businesses are growing, but there are other channels which are growing very fast. There are some new channels which are growing at a very fairy pace. The commerce channel which used to be almost very, very small is growing at a very-high pace. So with all that, we believe the domestic business can grow higher of 10% and the export — export business will grow at — currently with the base that we have, it will grow at 40% to 50%. So Bentra overall revenue growth would be in high-teens, about 15% to 18% somewhere there. The — that’s our belief that we should be able to be in-between the 10% to 15% as a company.
Ashwin Agarwal
Thank you, sir, and all the best.
Rajendra Gandhi
Thank you, sir.
Operator
Thank you. The next question is from the line of Mehta from Green Edge Wealth. Please proceed.
Unidentified Participant
Yeah, good evening. Thank you. So the first question is on the manufacturing side. So can you talk about our current capacity utilizations? And since we’ve done a lot of capex here and almost 95% is now manufactured in-house. So — but at the same time, have we managed to reduce our raw-material imports from China? I believe that number used to be around, 40% 45%. So if you could just update on that?
Rajendra Gandhi
Yeah. There are a lot of components that we still source from China, but all the products are manufactured maybe — I can say upwards the 25% of the revenue that we today generate from this company is all manufactured within the facilities of the company. But our reliance on many of those components, particularly electronics and there are several components that China specializes in, we continue to import them. And whenever there is a possibility to indigenize, we are doing that. But still there is a large number of our products that we import, they should be upwards of 30%. 30% of our input is still import. Okay. So that number has reduced from 40% 45% to 30% in the last two-odd years. Right.
Unidentified Participant
Yeah, indefinitely yes. And for example, I will tell you, we were making — we were importing 100% of our glass lids. We made them ourselves. These — some of them. So PCBs in the part, we were importing the PCBs. We now import only the components of these electronic parts. So there are several such initiatives that help us to bring down our — by value terms, but there are still several components that we import. Right. And what would be our capacity utilization?
Rajendra Gandhi
So the current install — I mean facilities that we install can take us to a revenue of at least 1.6 to 1.6 of the current number. Okay. And why did we get into personal sale category like fans and hair dryers and are these all outsourced? What is the kind of capital investment that we’ve done here, if any category we want to try, initially we only trade-in them. Most of the products under the personal care category are in the Phase-1, that is in the trading — it is in the base of trading. We are seeing high volumes in some of the SKUs, which have gone to manufacturing. When I say manufacturing, it is more of important assembly. Definitely as this builds, we are seeing very good demand from the channels that we have intended to get-in. We are only selling in these products through e-commerce, our own-retail and the quick commerce is also getting into this.
Apart from this, we are now getting into modern trade. With all these four channels, we see, I mean, some of the products have already gotten to that volume where we can manufacture them. And in the in the future, we will be completely manufacturing them, that is backward integrate each of the component. So — but majority of the revenue now that we have started these are very new category. We are still in Phase-1 because the revenue is coming from trading.
But what do you think is a right to win your these three strengths of the company. It is capability to manufacture. There is definitely going to be a difference in this — currently, these products are all imported and sold. Very soon, there will be a lot of difference with the introduction of BIS in this category. So these three capabilities of the company, capability to produce these products, capability to have the distribution channel and the brand that is backing this. All these three capabilities, we believe will give us — we are seeing that. We are seeing that at the very beginning of our journey in this category, we are seeing very good what we call acceptance from the market
Unidentified Participant
And what was the capex done for the Kar and what is the revenue potential or that you would have in capex is in different forms is in the toolings exclusively for them, machines, not necessarily exclusive, but then these are general for for them. Then it is the land building, the power. So the capex is in different forms, many of them is already and facilities are already there in the company. We have a large warehouse and all things. But exclusively for IPR, we would have invested about close to INR30 crores. And what kind of revenue potential or let’s say, order book for the first 12 months, first 12 months may not be very large. In the next two, three years,
Rajendra Gandhi
We see this getting to between INR200 crore and INR300 crores.
Unidentified Participant
Okay. And what is the CapEx guidance for the current financial year, FY ’25 ’26, INR50 crores. Around approximately INR50 crores. And lastly, while you’ve touched upon it in some shape and form, but there is a huge gap between value and volume growth. You did touch upon it, I think for small appliances and non-stick cookwear. But if you could also comment on industrial cook tops, there is almost an 8 percentage point gap between value and volume growth. So is that just due to the product mix or have you taken any pricing actions to there?
Rajendra Gandhi
Yeah. So across the category we have certainly you see the margin improvement can come by either increased price realization or cost-reduction. So definitely because of the nature of the way we are, we are backward integrated, highly manufactured, we are already there. So the incremental gross margins can only come by increase increasing our recognition — I mean same value realization. So obviously, in all of these categories without the stability in all the channels, we are trying to improve our realization. So obviously that will lead to higher-value growth than volume growth.
Unidentified Participant
So basically premiumization of products in all these categories like small appliances, non-stick cooker and cook top, which has led to value growth kind of outpacing the volume growth. Is that fair to say?
Rajendra Gandhi
Yes. No, absolutely your understanding that.
Unidentified Participant
But then how about gas cooktops? So that has degrown both in terms of volumes and value. So what would be the reason for that?
Rajendra Gandhi
No, this is 1/4 — see, we have a large channel of the LPG, we sell a large number in our e-commerce channels and the larger revenues for e-commerce channels happen between these two, 3/4, second and 3rd-quarter. And that’s why you have seen in the first-quarter a little lower number on that. The buying has started now. So actually on the gas cook top, you will see a considerable growth certainly in the second and 3rd-quarter, both in value and volume.
Unidentified Participant
But no, my comparison is Y-o-Y. You’re right, because the season — the season for last year for the buying season
Rajendra Gandhi
Has moved by one month this year.
Unidentified Participant
Because of the early festive?
Rajendra Gandhi
Yes, early. This year is a little early.
Unidentified Participant
And cookers, again there volume growth has outpaced value growth unlike the other categories. So here, aren’t we seeing any kind of premiumization trend kind of playing out?
Rajendra Gandhi
No, actually it is. Is also moving a lot moving from aluminum to. We are aggressively priced in the premium end and we are also witnessing that our growth from the higher-value is more than is growing faster than our basic products like the aluminum.
Unidentified Participant
So then ideally the value growth should have outpaced the volume growth, right?
Rajendra Gandhi
I don’t say that the existing aluminum bookers are not growing. They are growing, but the growth of our bookers is little higher than the aluminum bookers.
Unidentified Participant
Okay. And just the last one if I can ma’am.
Operator
May we request you to join the queue
Unidentified Participant
As there are last one is the data question if that’s okay.
Operator
Yes, ma’am, please continue the question. Yeah, thank you. So we had some IT notices in the past. So what is the aggregate tax demand and have we recognized this in our book? I think we have disclosed this.
Rajendra Gandhi
There is no material impact from the ITE on the company and whatever was to be the anomalies that are accounting anomalies are there, we already paid that and adjusted for the years that we had assessed already.
Unidentified Participant
Got it. Thank you and all the best.
Operator
Thank you. The next question is from the line of Thomas Shah from Paris Investment. Please proceed..
Unidentified Participant
Yes, sir. Good afternoon. Sir, if you see last three, four years, our EBITDA has increased from INR96 crores in FY ’22 to INR151 crore in FY ’25, but the same is not seen in bottom-line. In fact, our bottom-line has grown. I mean, it’s mainly due to increase in interest cost and depreciation. So wanted to know, even though as per our guidance, our EBITDA margins what we are guiding for this year is 11%, how much of that will be reflected in from
Rajendra Gandhi
So our belief is now going-forward that the operational leverage is settled and your improvement in EBITDA only improve the PAT percentage higher than the improvement in the percentage of EBITDA. So can you expect PAT in excess of INR50 crores this year? I kindly watch us for one or two quarters, I’m sure you will get a better number.
Unidentified Participant
Okay, okay. And sir, this year, we are guiding for 12% to 15% revenue growth. And with the new IKEA setup which we are coming up, what can we expect in FY ’27 in terms of revenue?
Rajendra Gandhi
So we believe that we are back to the 15% — upwards of 15% growth and that two periods after COVID has normalized and some rationalization in the business various businesses. So with all that, we believe that the company is well set for a 15% annualized growth rate. Okay. And sir, you mentioned to the previous participant that ICA business will start from the 3rd-quarter this year, 4th-quarter. It will start in — yeah, business will start billing, it does not give meaningful revenue, but we’ll start seeing revenue from the last quarter of our financial year. And the business will be normal for the coming year and you’ll see higher contribution coming from FY ’28 onwards. So FY ’27, we’ll have — we’ll have meaningful business from IKEA, but the real business will be from ’28. It takes time for all this business to settle down, but you will start seeing some business from the 4th-quarter.
Unidentified Participant
Okay. And my final question, sir, this quarter, our depreciation has come down and from March quarter, it was INR21 crore, now it is around INR17 crore. So can we expect the similar numbers throughout the year?
Rajendra Gandhi
Yeah, both on interest and depreciation combined, you will be at the similar run-rate so-far. Okay. So there will not be material impact from new IKEA capex and that is already done soon. Those are already done.
Unidentified Participant
Okay, okay. So that should meaningfully add to the bottom-line, right, interest and depreciation.
Rajendra Gandhi
Yeah, that’s what I meant by that improvement in EBITDA, you’ll see percentage contribution to our PAT will be higher than the current percentage.
Unidentified Participant
Okay. Okay, fine, sir. Thank you and all the best.
Operator
Thank you, sir. Thank you. The next question is from the line of Rajna from Simp. Please proceed.
Unidentified Participant
Hello. Hello. I just wanted to know what has been the contribution from new product launches to overall revenue? And if you could quantify for this quarter and last year and how has the offtake been as the pace of innovation in kitchen appliances industry is fast and competitive? So if you could comment on your new product launches and how they have performed over these years? Sir, my second question.
Rajendra Gandhi
We don’t have a number to give right away, but the majority of our developments have happened in the appliances and you’ve been seeing continuously in the last four, six quarters a higher-growth rate coming from our appliances. In the cookwear category, of course, the is what I mentioned about INR137 million coming is a completely new category for us. Apart from this, we are building the ceramic cookwear and the footwear. But otherwise, majority of the small appliances are new and the higher-growth rate reflects on the contribution coming from new products. I do not have off and a number to give you on the contribution only from our new introductions, but we can share it with you.
Unidentified Participant
Okay, okay. And second question would be, what is the criteria used to determine on these new product launches for online versus offline channels? And are there any specific product categories or SPOs which perform online better? And if yes, do they incrementally contribute to margins or profit margins from new products? And these — these margins from new products, do they stay same across channels, both offline or online or is there some difference in profit margins?
Rajendra Gandhi
Yeah. Apart from our exports, all our margins we are agnostic and margins this channel or product. Of course, we go through three phases of new product introduction. We initially trade and manufacture and then completely backward integrate. So at this stage, the margins are the same, that is when we get into manufacturing, but they are little lower in these first two stages that is when we trade or we are only manufacturing. On choosing on wings on which channel, generally all the categories of products, we want to ideally be in every channel, but of course, there has been an exception. In the case of personal care products, generally, the market itself for percent products, 70% comes from online business for across the category. So we chose to do it only through the online channels and there are some interest owned by our modern trade accounts. And so we have also introduced this through our modern trade.
And because all our retail stores will sell and display the entire range, this is also available through our retail stores. We are not very sure whether we will get into the general trade-in the personal care products. But otherwise for us, any category that we generally get into is designed to get into all the channels.
Unidentified Participant
Okay. Thank you,
Operator
Thank you. The next question is from the line of Nikit Nikat from Dolat Capital. Please proceed.
Unidentified Participant
Hi, thanks for the opportunity. I had one question regarding the cookwear, which is 24% of the total revenue in-quarter one. So how much of that is basic non-stick cookwear and how much — what’s the percentage of ceramic, Kasta and in that?
Rajendra Gandhi
Yeah. I think again we will have to break that and give you. I can tell you INR177 million is what was purely from our in the first-quarter, some revenue of — no, we’ll have to break it up. We don’t have an exact number. Of course, the number from and the ceramic is much larger now. So I know sometime we will give you this number.
Unidentified Participant
Okay, sir. And my second question is regarding the store addition. So we added 19 stores in this quarter. So our guidance for addition of 90 to 100 stores in this year remains same.
Rajendra Gandhi
Yeah, we are in the same run-rate this of ’19. So if you go by this run-rate, we may end-up at 80, but they may not necessarily be there. So we believe that we will be in the.
Unidentified Participant
Okay. Thank you and all the best.
Rajendra Gandhi
Thank you.
Operator
Thank you. The next question is from the line of Nikit from NB Alpha Fund. Please proceed.
Natik
Hi, sir. Thanks for having a follow-up. Sir, my question is, if you could give the rent cost for this quarter and what is it expected to be this year and next year,
Rajendra Gandhi
The quarter. INR7 crores is the total rent for the quarter
Natik
. That’s more than that. And sir, what do we expect it to be for the full-year this year and next year? Do you expect it to increase from between 2021, right. Sorry, I did not get the number.
Rajendra Gandhi
INR28 crore and INR29 crores, 28.9 crores.
Natik
Okay, got it. Sir, if you could give us sort of number of Coco and Coco stores out-of-the total stores that hear you. In all,
Rajendra Gandhi
We are now having 281 stores. 44, we have 22 stores, 45 or 4 stores, 38 are ready for handover to show the existing Coco are moving to Coco and we have 176 coco stores so 176 are Sco 4, 22 48 are in the stages of handover, 45 are 4 and 22 are 4, 4.
Natik
Got it, got it, sir. Sir, and just one clarification, the rent cost, how much of it is attributable to the facility that we have, how much to the retail stores?
Unidentified Speaker
And rent cost. We have other than our corporate office, everything is based. So this is one — all this went is towards the retail stores
Unidentified Participant
. Okay, sir. Okay, got it. That’s it from my side. Thank you.
Operator
Thank you. Due to time constraints, that was the last question. I now hand the conference over to Mr Rajanda Gandhi, Managing Director, for closing comments. Over to you, sir. T
Rajendra Gandhi
Hank you. Thank you all of you for your patience and for listening. I hope I have addressed or we have addressed all your questions. But if you have any further inquiries, please feel free-to reach-out to us directly or contact our Investor Relationship partner, in Time India Private Limited. And there are some questions that we would — we have permitted to get back to you. We’ll directly get back to them. Thank you.
Operator
Thank you. On behalf of Craft Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines