1. At a Glance
Flair’s Q1 FY26 results are like a pen that starts bold and ends faint. Revenue rose 16.8% YoY to ₹288.5 Cr, but PAT slipped to ₹27.1 Cr – down a steep 23% QoQ. Margins stayed at 16%, capex of ₹80–90 Cr is in the works, and promoters still clutch 78.6% of the inkpot.
2. Introduction
Imagine buying a “premium” gel pen only to find it leaks ink on your shirt. That’s Flair’s Q1: top-line growth is clean, bottom-line messy. With a new plant on the horizon and stretched working capital cycles, this quarter feels less “Pilot G2” and more “cheap exam pen.”
3. Business Model (WTF Do They Even Do?)
Flair makes pens (the bread, butter, and refill), creative products (thanks to Disney and MAPED tie-ups), and steel bottles (because hydration is trending). Pens contribute the bulk of revenue; creative and houseware lines are scaling but still pocket-sized.
4. Financials Overview
Q1 FY26 Numbers:
- Revenue: ₹288.5 Cr (+16.8% YoY, from ₹247 Cr)
- Operating Profit: ₹38 Cr (OPM 16%)
- PAT: ₹27.1 Cr (+5.7% YoY, -23% QoQ from ₹35 Cr)
- EPS: ₹2.57 (down from ₹3.03 in Sep-24)
Verdict: Topline jogs forward, bottom line trips.
5. Valuation – What’s This Stock Worth?
Using P/E 28–32 on FY26E EPS ~₹11, fair value range is ₹310–₹350. DCF cries ₹300, EV/EBITDA whispers ₹340. The stock at ₹318 is priced like a pen that’s neither Parker nor Cello – just… there.
6. What-If Scenarios
- If new plant delivers: Margins climb to 18–19%, EPS gets re-inked, stock >₹350.
- If capex drags: Margins bleed, WC cycles choke, stock <₹280.
- If exports boom: Revenue >₹1,100 Cr FY26, premium mix shines.
- If raw material spikes: Profits smudge further.
7. What’s Cooking (SWOT Analysis)
Strengths: Market leader, export king, debt-lite.
Weaknesses: Thin margins, no dividend, WC stretch (214 days).
Opportunities: Capex leverage, creative SKU growth.
Threats: Digital shift, input volatility, execution risk.
8. Balance Sheet 💰
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Assets | 634 | 1,073 | 1,156 |
| Net Worth | 426 | 889 | 1,002 |
| Debt | 99 | 56 | 39 |
| Liabilities | 109 | 128 | 116 |
Comment: Debt is as small as your leftover ink.
9. Cash Flow (FY23–FY25)
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Ops | 79 | 24 | 58 |
| Investing | -46 | -246 | -29 |
| Financing | -32 | 274 | -28 |
| Net Cash | 0 | 51 | 2 |
Snark: Cash flow is that freelancer friend – works hard, rarely has cash.
10. Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE (%) | 17 | 12 | 11.9 |
| ROCE (%) | 34 | 23 | 15.6 |
| PAT Margin (%) | 12 | 12 | 11.8 |
| D/E | 0.11 | 0.06 | 0.04 |
ROCE has fallen harder than your pen during exams.
11. P&L Breakdown – Show Me the Money
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue | 903 | 919 | 949 |
| EBITDA | 171 | 176 | 152 |
| PAT | 112 | 118 | 112 |
Topline’s stable, bottom line gasping.
12. Peer Comparison
| Company | P/E | ROE % | OPM % | PAT Qtr Cr |
|---|---|---|---|---|
| Doms Industries | 69.5 | 22.3 | 18.2 | 51.3 |
| Flair Writing | 29.5 | 11.9 | 16.0 | 27.1 |
| Kokuyo Camlin | 189.4 | 1.9 | 4.4 | 4.4 |
| Linc Pens | 20.9 | 17.7 | 11.9 | 12.7 |
Flair is the least drunk at a wedding of overvalued pens.
13. EduInvesting Verdict™
Flair’s Q1 is a mixed page: revenue writes a strong line, profits fade. Capex could ink a growth story if executed right; otherwise, margins keep crying. Not a disaster, not a multibagger – just a decent pen with potential smudges.
A steady pit stop, but not a Parker just yet.
Written by EduInvesting Team | 28 July 2025
Tags: Flair Writing Industries, Q1 FY26, ₹288 Cr Revenue, ₹27 Cr PAT, Capex ₹90 Cr, EduInvesting Premium
