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Industry Outlook

The presentation provides a detailed global stationery industry outlook:

  • The Stationery and Supplies market is expected to grow from USD 152.43 billion in 2025 to USD 160.22 billion in 2026, reaching USD 205.64 billion by 2031 at a 5.11% CAGR.
  • The Global Ball Point Pens market was valued at USD 12.9 billion in 2025 and is projected to reach USD 21.5 billion by 2035, growing at a 5.2% CAGR during 2026-2035.
  • The Global Luxury Pens Market was valued at around USD 3.8 billion in 2025 and is projected to reach USD 6.4 billion by 2034, growing at approximately 6.0% CAGR.
  • The global writing instruments market is valued at USD 25.3 billion in 2025 and is projected to reach USD 33.6 billion by 2032, growing at a 4.1% CAGR.

Indian Market Opportunity

Key growth drivers in the Indian market include:

  • India's ~371 million youth (~27% of population) and ~68% working age population
  • India's school system serves 24.7 crore students across 14.7 lakh schools
  • Literacy rate has risen from 74% in 2011 to 80.9% in 2023-24
  • Educational spending initiatives like Delhi's ₹900+ crore smart classroom expansion
  • NEP 2020 aims to achieve 100% GER by 2030
  • Union Budget 2025-26 allocated ₹1,28,650 crore to the Ministry of Education, a 6.5% increase

Company Overview

Linc Ltd. is one of India's largest & oldest writing instrument companies with national and international presence across SE Asia, Middle East, USA, UK, Europe, South America, and Africa.

Strategic Initiatives

The company's strategy focuses on six key areas:

1. Focus on premiumization - steadily increasing share of high-margin products

2. Inroads into adjacent categories by entering high-value stationery segment

3. Strong Balance Sheet with negative Net Debt

4. Expanding horizons through strategic joint ventures and capacity expansions

5. Making more homogenous presence across India

6. Commitment to strong corporate governance

Premiumization Strategy

The Pentonic brand was introduced in FY19 as a minimalistic yet contemporary pen. The company is increasing Pentonic's share in overall revenue.

Stationery Expansion Strategy

  • The Indian stationery and art materials market is growing at 13% CAGR, set to reach ₹72,000 crores by FY'28
  • New launches in markers, calculators, and other stationery products
  • Long-term aspiration to tap into the full ₹38,500 crore Indian stationery market
  • Leveraging brand equity, distribution and innovation capabilities

Shareholder Value Creation

  • Strong Net Cash generated from Operating Activities (NCOA) in FY26
  • Consistent Dividend Pay-out track record (except COVID years)
  • Steady decrease in Net Debt to ₹(686) lakhs as on Mar'26
  • Net Debt/Operating EBITDA reduced from 2.44 in FY19 to (0.12) in FY26
  • Capex funded largely through internal cash generation

International Initiatives

The company has 5 strategic JVs and subsidiaries driving growth across markets.

Geographic Penetration

  • India has over 10 million non-stationery outlets
  • Increasing footprint in West and South India from 27% to 37% between FY19 to FY26
  • Moving towards more homogenous presence across India

Sustainability Initiatives

  • Pentonic's individual plastic wrapper packaging substituted with paper box packaging
  • Pentonic 75 made from 75% recycled plastic
  • Employs ~1,000 female employees
  • Employs specially-abled workforce with training
  • Partner of "Friends of Tribal Society" for education support

Financial Performance - FY26 Consolidated

Profit & Loss Summary (₹ lakhs):

  • Operating Income: 54,301
  • Operating EBITDA: 5,949
  • Operating EBITDA (%): 11.0%
  • Share of Profit/(Loss) of JV: (376)
  • PAT (attributable to owners): 3,274
  • PAT Margin (%): 5.9%
  • Non-Controlling Interest: 17
  • EPS: ₹5.50

Balance Sheet Summary (₹ lakhs):

  • Gross Debt: 643
  • Cash & Cash Equivalent: 1,329
  • Net Debt: (686)
  • Capital Employed: 29,295
  • Net Fixed Assets (incl CWIP): 14,078
  • Net Current Assets: 9,877
  • Total Assets: 35,932

Key Ratios:

  • Net Debt/Equity: (0.03)
  • Net Debt/Op EBITDA: (0.12)
  • EBIT/Interest: 16.59
  • Current Ratio: 2.50
  • Fixed Asset Turnover: 4.04
  • Total Asset Turnover: 1.55
  • Inventory Days: 67
  • Debtor Days: 35
  • Payable Days: 38
  • Cash Conversion Cycle: 64
  • ROE: 13.3%
  • ROCE: 18.7%

Operational Highlights - Product Segmentation (₹ lakhs)

Writing Instruments:

  • Own Brands Premium: 25,708 (FY26) vs 25,790 (FY25) - (0.32% growth)
  • Own Brands Mass: 10,822 (FY26) vs 12,504 (FY25) - (13.45% growth)
  • Licensed Brands: 8,986 (FY26) vs 8,297 (FY25) - 8.3% growth

Other Products:

  • Own Brands: 4,920 (FY26) vs 4,413 (FY25) - 11.5% growth
  • Licensed Brands: 2,177 (FY26) vs 3,100 (FY25) - (29.8% growth)

Leadership Team

The presentation introduces the leadership team:

  • Mr. Deepak Jalan, Managing Director - 39 years experience, international operations
  • Mr. Aloke Jalan, Whole Time Director - 34 years experience, marketing operations
  • Mr. Rohit Deepak Jalan, Whole Time Director - Heads International Business & Marketing
  • Mr. N.K. Dujari, Director Finance & CFO - Chartered Accountant, Company Secretary
  • Dr. (H.C.) CS Adv Mamta Binani, Independent Director - India's first insolvency professional
  • Mr. Rajnish Rikhy, Independent Director - 30+ years experience across multiple sectors
  • Mr. Sanjay Jhunjhunwalla, Independent Director - 38+ years experience, retail growth specialist
  • Mr. Mohit Kampani, Independent Director - 31 years experience, Founder & CEO of Sumosave Retail