Flair Writing Industries Limited – Investor Presentation Summary

Key Operational Highlights

  • Revenue grew 6.5% QoQ in Q2 FY27 to ₹340.1 crore from ₹319.2 crore in Q1 FY27
  • Domestic sales increased 5.5% QoQ to ₹292 crore in Q2 FY27 from ₹276 crore in Q1 FY27
  • H1 FY27 domestic sales grew 10.8% YoY to ₹568 crore from ₹513 crore in H1 FY26
  • Export sales declined 5% in H1 FY27 to ₹92 crore from ₹97 crore in H1 FY26
  • Commercial operations for new fourth line for Steel Bottles expected to begin in Q4 FY27
  • Manufacturing disruptions occurred due to floods in Daman and Valsad facilities

Key drivers of operational performance: Sustained growth across key business segments in domestic market, despite temporary manufacturing disruptions from floods and global export market challenges.

Segment Performance

  • Pen sales sustained growth momentum despite global disruption affecting exports
  • Steel bottles and houseware segment expected sequential growth of 10% but was impacted by flood disruptions in Valsad facility
  • Creative segment showed strong performance with the brand delivering ~10x revenue growth in five years since inception

Explanation of significant changes in segment performance: Reduction in steel bottles and houseware sales primarily due to temporary manufacturing disruptions caused by floods in Valsad facility, which has been brought to normalcy. Export performance affected by West Asian crisis.

Financial Highlights

Revenue: ₹340.1 crore (Q2 FY27), ₹659.4 crore (H1 FY27)

EBITDA: ₹50.6 crore (Q2 FY27), ₹103.9 crore (H1 FY27)

PAT: ₹37.1 crore (Q2 FY27), ₹60.8 crore (H1 FY27)

EPS: Not Specified

Margins: EBITDA Margin 14.9% (Q2 FY27), 15.8% (H1 FY27); PAT Margin 9.3% (Q2 FY27), 9.2% (H1 FY27)

YoY/QoQ comparison: Revenue grew 6.0% YoY in Q2 FY27 and 8.2% YoY in H1 FY27; PAT declined 25.8% YoY in Q2 FY27 and 15.2% YoY in H1 FY27

Drivers of financial performance: Higher revenue growth offset by increased cost of materials consumed and other expenses

Comparison to market estimates: Not Specified

Key Risks: Raw material price fluctuations, global market disruptions, manufacturing disruptions due to natural events

Geographical Revenue Split

Domestic vs Export/Regional Revenue:

Domestic: ₹568 crore (H1 FY27), 86.1% of Total

Export: ₹92 crore (H1 FY27), 13.9% of Total

Regional Breakdown: Not Specified

Balance Sheet Snapshot

Net Debt/Equity: Not Specified

Reserves: Not Specified

Current Assets/Liabilities: Current Assets ₹885.4 crore, Current Liabilities ₹215.8 crore (Sep-26)

Working Capital/Leverage Metrics: Not Specified

Financial Health Insights: Strong equity base of ₹1,198.1 crore with manageable borrowings of ₹57.1 crore total

Capex & Cash Flow Health

Capital Expenditure: Total capital expenditure of ₹43.42 crore for new facilities, including ₹33.25 crore capitalized towards factory building in Valsad

Free Cash Flow: Not Specified

Operating Cash Flow: Net cash from operating activities ₹32.2 crore (H1 FY27)

Net Debt Movement: Not Specified

Investment Rationale: Focus on capacity expansion with new Valsad unit and Surat facility expansion, increasing installed capacity for Writing Instruments & Stationery

Strategic & R&D Initiatives

Investments in Innovation: New product launches across pens, creative products, and steel bottles; state-of-the-art machineries for tip making facilities; 1.85 MW rooftop solar project

Expected impact on growth: Premiumisation strategy with two-thirds of new pens launched in FY25 targeting mid-premium and premium segments

Strategic Rationale: Expanding into high-growth creative segment, leveraging distribution network, increasing in-house manufacturing capabilities

Industry Trends & Business Environment

Macro/Industry Trends: Global disruption affecting exports, West Asian crisis impacting certain segments, raw material price fluctuations

Impact on Company: Export sales affected by global conditions, manufacturing disruptions from natural events impacted quarterly performance

Management Commentary & Growth Outlook

Strategic Outlook: Focus on premiumisation with increasing share of premium products in new launches; leveraging deepest distribution network in the industry

FY Guidance: Not Specified

Market Share Targets: Targeting to become dominant player in larger stationery world through creative segment expansion

Risks and Opportunities: Manufacturing disruptions from natural events, global market conditions affecting exports, raw material cost pressures

ESG Updates

  • Women empowerment initiative with majority female workforce across facilities
  • Green initiatives with 1.85 MW rooftop solar project at Valsad & Daman units delivering cost savings
  • CSR initiatives spanning education, healthcare, and community support including distribution of sewing machines, laptops to students, and medical equipment donations

Corporate Structure

Board of Directors: Mr. Khubilal Jugraj Rathod (Chairman), Mr. Vimalchand Jugraj Rathod (Managing Director), Mr. Rajesh Khubilal Rathod (Whole-time Director), Mr. Mohit Khubilal Rathod (Whole-time Director), Mr. Sumit Vimalchand Rathod (Whole-time Director)

Manufacturing Facilities: Integrated facilities with total installed capacity of 2.4 Billion pieces per annum across Valsad (Gujarat), Dehradun (Uttarakhand), Naigaon (Maharashtra), Daman, and Surat (Flomaxe Stationery)

In-House Production Capabilities: 100% Pens, 80%+ Tips, 75%+ Creatives, 100% Steel Bottles & Houseware