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 PAT of INR 42.7 crore, up 30.4% year-on-year, and EBITDA of INR 60.3 crore, up 19.2% year-on-year, driven by strong growth in creative and steel bottles/houseware segments and robust export recovery.

• Creative business grew 70% year-on-year, steel bottles/houseware up 121%, and pens segment up 4% year-on-year; creative and steel bottles/houseware now contribute about 30% of total revenue.

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

• Operational efficiency improved through automation, new product launches, expanded distribution, and digital transformation initiatives.

• New Valsad facility nearing completion, set to be operational in Q4 FY26 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 and up from 17.17% in Q1 FY26).

• PAT: INR 42.7 crore (+30.4% YoY); PAT margin: 13.3% (up 118 bps YoY).

• H1 FY26 revenue up 18% 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 (basic and diluted), up from INR 3.12 in Q2 FY25.

Outlook and guidance

• Revenue growth ahead of 15% CAGR guidance; management expects to sustain current momentum, with creative and steel bottles/houseware segments driving future growth.

• High single-digit growth expected in pens for FY26; creative and steel bottles/houseware to increase revenue share over time.

• Working capital cycle targeted to improve by 10 days by year-end; focus on utilizing IPO proceeds for expansion, capex, and working capital.