TTK Prestige

TTK Prestige reported a strong Q4 FY26, with domestic market growth reaching 14.4% and overall company-level growth at 12.5%. This performance was attributed to leveraging specific opportunities, particularly in cooktops, and the positive impact of structural changes implemented over previous quarters. Operating EBITDA for the quarter saw a significant increase of 43.8% to INR 81.7 crores, while Profit Before Tax grew by 35.9% to INR 71.9 crores. For the full fiscal year 2026, the domestic business grew 9.8%, aligning with the company's overall growth of 9.6%. Full-year Operating EBITDA grew 12%, and Profit After Tax increased by 14% to INR 185 crores.

The domestic market demonstrated robust demand, with both appliance and kitchenware businesses growing at 10%. The appliance segment was particularly boosted by opportunities around cooktops, driven by consumers replacing existing items with induction cooktops. Management noted that this tactical short-term growth opportunity contributed to the strong Q4. Within cookware, new material categories such as stainless steel, triply, and cast iron, along with ceramics, are growing at over 20%, indicating a strong trajectory for these segments. The company's entire product portfolio is now induction-based, and the shift towards stainless steel cookers (50-55% of the category) from aluminum (45%) has already occurred industry-wide.

Despite input cost inflation, which averaged around 10% with some areas seeing 15% increases due to post-war scenarios, TTK Prestige managed to expand its gross margins. This was achieved through a combination of internal inventory management, a favorable product mix shift towards higher-margin categories like appliances, and various cost reduction initiatives on the manufacturing and sourcing sides. Management indicated that price hikes are inevitable to mitigate rising raw material costs, and their impact will be progressively reflected in the coming quarters. The company aims to restore its EBITDA margin to the 13-14% range after the current investment phase, which is expected to last for approximately two more years.

TTK Prestige is undertaking significant strategic investments, with a plan to spend approximately INR 200 crores over a three-year period, which commenced in Q4 FY25. These investments are directed towards enhancing capabilities in R&D, product design, and overall infrastructure, including a new innovation center for design and appliances. The company has also invested in its triply manufacturing facility in Karjan. These efforts are aimed at strengthening the product portfolio in terms of both depth and width, driving innovation, and improving overall operational efficiency. Management emphasized that these investments are crucial for long-term growth and competitive differentiation.

The company maintains an omnichannel focus, performing well across e-commerce, quick commerce, large format stores, and general trade. The Prestige exclusive channel, considered a competitive differentiator, contributes 12-15% of the business and is growing in double digits. The company has expanded its exclusive store network to over 700 stores and continues to add more in different geographies, opening around 100 new stores recently. This expansion is part of an all-India play, targeting towns and potential localities. Kitchenware facilities are operating at over 85% utilization, and appliance facilities at 75-80%, with continuous capex expansions planned over the next two years to support volume projections.

While Q4 FY26 was strong, management acknowledged an 'overhang' of challenges for the next few quarters, including geopolitical tensions, supply chain disruptions, and rising raw material prices. Exports faced a setback due to these issues. Despite increasing competition, particularly from new players focusing on pricing, management believes the category is robust enough to absorb it, and their focus remains on consumer needs and product portfolio. The company is confident that its ongoing transformational changes and strategic investments will continue to yield positive results, positioning it for sustained growth.