Flair Writing Industries (FLAIR) Q3 24/25 earnings summary

Executive summary

• Achieved strong year-on-year growth across all business segments, with notable expansion in both domestic and export markets, and robust own brand sales growth.

• Strategic partnerships with Maped and Disney to distribute premium stationery and creative products in India, and expansion in the pencil segment with new product launches.

• Launched mechanical and woodless pencils, expanded creative and steel bottle portfolios, and introduced Disney-branded products, supporting premiumization and innovation strategies.

• Recognized as top exporter by PLEXCONCIL and as one of the best brands of 2024 by ET Edge, with multiple export awards.

• Unaudited consolidated and standalone financial results for Q3 and 9M FY25 were reviewed and approved, with clean limited review reports from auditors.

Financial highlights

• Q3 FY25 consolidated revenue from operations at ₹26,454.77 lakhs (INR 265 crores), up 17.6% year-on-year; nine-month revenue at ₹78,181.52 lakhs (INR 782 crores), up 7.3%.

• Q3 FY25 profit after tax at ₹2,926.88 lakhs (INR 29 crores), up 54% year-on-year; nine-month PAT at ₹8,824.49 lakhs (INR 88 crores), up 4.7%.

• Q3 EBITDA at INR 45 crores, up 31.1% year-on-year; EBITDA margin at 17.1%, expanding 176 bps.

• Gross profit margin stable at ~52% in Q3 FY25 and 51.5% in 9M FY25.

• Basic and diluted consolidated EPS for Q3 FY25 was ₹2.78, up from ₹1.96 in Q3 FY24.

Outlook and guidance

• Confident of achieving double-digit growth for the full year, with Q4 expected to be the strongest quarter due to exam season and export push.

• Ongoing capex program of ~₹230 crores over FY24–FY26 to increase in-house manufacturing and expand capacity by 10% to 2.4 billion pens annually by FY26.

• Creative segment guidance revised to 20% growth for FY2025, down from earlier 28-30%.

• Margins expected to improve to 19-19.5% over the next 2-3 quarters as investments in teams and distribution yield results.

• Steel bottle segment maintains guidance of INR 120 crores revenue by FY2027.