MUMBAI: Shares of induction cooktop makers jumped after a blockade of the Strait of Hormuz amid the West Asia conflict disrupted liquefied petroleum gas (LPG), or cooking gas, supplies, pushing households towards electric alternatives. But the surge may do little to move the needle for the companies behind these appliances.
Since 28 February when the US and Israel struck Iran, shares of TTK Prestige and Butterfly rose about 15% through 12 March, while Stovekraft climbed 9% through 11 March, compared with a 6% fall in the benchmark Nifty 50.
For listed consumer appliance companies such as TTK Prestige, Stovekraft Ltd, and Butterfly Gandhimathi Appliances Ltd, induction cooktops account for a small share of revenue, limiting the earnings impact even if demand spikes.
“Even if the induction cooktop segment grows by about 50% in the next financial year for the three companies, the overall company revenue would increase by only around 5-6%. So it is not very material,” said Aakash Fadia, consumer durables lead analyst at Yes Securities.
Induction cooktops, which use electricity instead of an open flame, have become one of the most sought-after products amid tightening LPG supplies.
However, analysts say the shift is likely to be temporary. LPG remains the dominant fuel in Indian kitchens due to its familiarity and suitability for traditional cooking methods.
Limited earnings impact
For TTK Prestige, induction cooktops made up 11% of its total operating revenue in FY25, according to its annual report. For Stovekraft, the number was about 12%. For Butterfly, induction cooktops did not even make it as a separate category, it was included in ‘others’ which contributed 7% to revenue from operations.
The induction cooktop market in India is estimated at around ₹1,200 crore, with Stovekraft and TTK Prestige together accounting for about 36% as of FY25, according to Fadia.
“Whatever channel inventory was already available has largely been sold out, and companies would not be in a position to quickly refill the channel as they would not have planned for such a sudden surge in demand,” said Fadia. “They will need time to order components and align the supply chain, which could take at least 20–30 days."
Most consumer appliance companies source components from China and assemble them locally, while some traders and distributors directly import finished goods from China and Vietnam, limiting the benefit for domestic manufacturers, said Fadia.
A major share of induction stoves sold in India are sourced from China, with companies procuring components or finished units and assembling them domestically before selling under local brands, said Trviesh D, chief operating officer at Tradejini, a stock broking company.
And even if companies ramp up supply, the demand may fade once LPG availability improves.
“While the disruption may lead some households to try induction cooking, we expect demand to normalize once LPG supply improves, limiting the likelihood of a sustained structural shift in the category,” said Manish Valecha, research analyst, Anand Rathi Institutional Equities.
Investor enthusiasm has already cooled. Having risen in the immediate aftermath of the war, shares of these companies fell 9-13% between 12 March and 16 March.
Structural headwinds
The recent stock movement may also obscure deeper challenges in the consumer appliances sector.
Competition has intensified as more branded players enter the category, including companies from adjacent segments such as wires maker Polycab, adding to a market already crowded with local brands.
As competition has increased, profit margins for listed players have come under pressure.
For TTK Prestige, net profit margin declined from 8.2% in Q3FY23 to 3.8% in Q3FY26. For Stovekraft, margins fell from 2.4% in Q3FY23 to 1.1% in Q3FY26. For Butterfly, margins slipped from 4.6% to 4.4% during the same period.
“Despite increasing sales, profits have not grown at the same pace because margins have shrunk due to rising competition,” said Sunny Agarwal, head of fundamental research at SBI Securities.
Agrawal added that the rise of e-commerce and quick commerce has made consumers more willing to switch brands based on price and perceived value.
“The brand affinity has reduced not just in consumer appliances but across categories such as beauty products, consumer staples, and others,” Agrawal said.
Growth expectations also remain modest.
Stovekraft is expected to post revenue growth of 8.5% through FY28, according to a report by Yes Securities. TTK Prestige is projected to report revenue and net profit CAGR of 8.8% and 6.2%, respectively, over FY25–28E, according to an ICICI Securities report dated January 30.
Some companies are trying to diversify.
At Stovekraft, exports accounted for about 20% of revenue in Q1FY26, the latest data available. For TTK Prestige, exports contributed only 2.6% of total revenues in Q3FY26.
But exports face near-term challenges due to tariff-related uncertainties.
TTK Prestige’s management said in its December 2025 quarter commentary: “The US export market remains challenging due to global uncertainties while India-EU FTAs could provide medium-term export opportunities.”
Against this backdrop, analysts say investors looking for exposure to the sector may prefer more diversified consumer electrical companies.
“We prefer diversified consumer electrical companies with multiple growth drivers, such as Havells India, Crompton Greaves Consumer Electricals and V-Guard Industries, which offer a stronger long-term growth profile,” said Valecha of Anand Rathi.