Flair Writing Industries (FLAIR) Q2 25/26 earnings summary

Executive summary

• Achieved record Q2 FY26 revenue of INR 320.9 crore, up 18.8% year-on-year, with profit after tax rising 30.4% year-on-year to INR 42.7 crore.

• Creative and steel bottles/houseware segments drove growth, with creative up 70% and steel bottles/houseware up 121% year-on-year in Q2.

• Export sales rebounded, growing 41% year-on-year, led by strong OEM export growth and expansion in Latin America and the Middle East.

• Total own brand sales grew 20% year-on-year, with strong domestic traction and healthy volume-led growth in both own brand and OEM.

• New Valsad facility nearing completion, set to be operational in Q4 to augment production capacity.

Financial highlights

• Q2 FY26 revenue: INR 320.9 crore (+18.8% YoY); gross profit: INR 166.6 crore (+16.7% YoY); gross margin: 51.9%.

• EBITDA: INR 60.3 crore (+19.2% YoY); EBITDA margin: 18.8% (up 7 bps YoY); PAT: INR 42.7 crore (+30.4% YoY); PAT margin: 13.3% (up 118 bps YoY).

• H1 FY26 revenue: INR 609.5 crore (+17.8% YoY); operating cash generation of INR 51 crore in H1 FY26 vs INR 6 crore in H1 FY25.

• EPS for Q2 FY26 was INR 4.04, up from INR 3.12 in Q2 FY25.

• As of September 30, 2025, consolidated total assets stood at INR 1,31,027.48 lakh, with equity attributable to equity holders at INR 1,07,849.07 lakh.

Outlook and guidance

• Revenue growth in H1 FY26 ahead of 15% CAGR medium-term guidance; management aims to sustain momentum above initial guidance.

• High single-digit growth expected in pens for FY26; creative and steel bottles/houseware segments to continue outpacing overall growth.

• Planned capex of INR 80-90 crore for FY26 to set up new Valsad unit and fund subsidiary growth.

• Working capital cycle targeted to improve by 10 days by year-end.

• Focus on utilizing IPO proceeds for expansion, capex, and working capital, with a significant portion already deployed.