Ashish Kacholia Portfolio Stock Targets 2x Production as Iran War Spurs Induction Demand

Synopsis: A small-cap kitchen appliances maker backed by ace investor Ashish Kacholia has slashed debt, is doubling induction output, and is seeing demand spike from an unexpected geopolitical trigger.

When geopolitical shocks start showing up in quarterly earnings calls, it signals something unusual is happening. For one Ashish Kacholia-backed smallcap, the Iran conflict has translated into a surge in induction cooktop demand – and management is now racing to double production capacity to keep pace with an order book that is outrunning supply.

Stove Kraft has been on a strong run in 2026, with its shares gaining 34.5% in a year and 28.1% over the past six months. The steady rise reflects growing investor confidence in the company’s business outlook, driven by its expanding product portfolio, growth strategy, and expectations of stronger earnings in the coming quarters.

Ashish Kacholia’s Bet on Electric Cooking

Stovekraft Limited, the Bengaluru-based kitchen appliances company behind the Pigeon brand, counts ace investor Ashish Kacholia among its shareholders with 1.74% stake in the company. The company’s Q4 FY26 concall offered a striking data point: management directly attributed part of the induction cooktop demand surge to geopolitical disruption, noting that the Iran war resulted in a spike in demand for induction cooktops as households sought reliable electric cooking alternatives. Management went a step further, framing the shift as structural – electric cooking is moving “from option to necessity.”

The numbers back the narrative. Induction cooktops posted 89.4% value growth and 67.3% volume growth year-on-year in Q4 FY26, contributing 15.5% of quarterly revenue. Combined with small appliances, the electric cooking segment accounted for 56% of total Q4 revenue. Demand, management admitted, is currently “higher than our capability to produce.”

Doubling Production and Cutting Debt

To close the supply gap, Stovekraft is aggressively scaling induction capacity. The company produced approximately two million induction units in FY26 and has guided a run-rate of four to five million units going forward, with additional assembly lines being commissioned at its Baddi plant alongside its existing Bengaluru facility. Crucially, management noted that induction capacity expansion requires only minor assembly and testing lines – meaning the ramp does not demand heavy capital expenditure.

On the balance sheet, the company has been tightening working capital discipline. Management targets working capital below 30 days – citing 24-30 days as sustainable – supported by channel financing that brings receivables in within 15 days and platform financing arrangements that extend payable days while vendors are paid promptly. FY27 capex guidance stands at approximately INR 40 crore, including retail, a relatively modest outlay given the revenue ambitions in play.

IKEA Deal and Export Recovery Add to the Case

Beyond domestic demand, two additional growth levers are coming online simultaneously. The IKEA manufacturing program – for which dedicated plant capex was fully capitalized as of March 31, 2026 – begins billing in Q1 FY27. Three product lines will be activated progressively through the year, with management guiding FY27 IKEA revenues of INR 40–50 crore and a steady-state annual run-rate of INR 200-250 crore at full utilization.

On exports, OEM revenue jumped to 8.7% of Q4 revenue from 3.8% in Q3 FY26. A reduction in US tariffs on Indian goods to approximately 18% improved competitiveness, and export customers have accepted price increases effective June 2026. Management expects the export mix to return to and exceed its prior -12% share of revenue over the course of FY27.

Financials: Growth Accelerating Into Q4

For FY26, Stovekraft reported consolidated revenue of INR 1,607.4 crore, up 10.9% year-on-year, with gross margins improving 164 basis points to 38.7% and PAT rising 9.1% to INR 42.0 crore. The quarter told a sharper story – Q4 FY26 revenue grew 32.4% YoY to INR 414.5 crore, while PAT jumped 317.8% to INR 6.1 crore. Management has guided 15%-plus revenue growth for FY27, with EBITDA margins targeted at 11% and above, and a gross margin roadmap pointing to 42% within two to three years.

Stovekraft Limited is a Bengaluru-based kitchen appliances manufacturer operating the Pigeon and Gilma brands. Its product range spans induction cooktops, pressure cookers, cookware, and small kitchen appliances, sold across e-commerce, general trade, modern retail, and its own exclusive brand outlet network. The company manufactures largely in-house at facilities in Bengaluru and Baddi.

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