Flair Writing Q2 profit drops 26% despite revenue growth

Flair Writing Industries Limited reported consolidated profit after tax of Rs 31.72 crore for the quarter ended September 30, 2026, down 26% from Rs 42.73 crore a year earlier, although revenue from operations rose 6% to Rs 340.12 crore. Total expenses increased to Rs 305.52 crore from Rs 275.19 crore.

How did Flair Writing perform in the September 2026 quarter?

Flair Writing recorded higher quarterly revenue but lower profit in the quarter ended September 30, 2026. Revenue from operations increased by Rs 19.21 crore year on year to Rs 340.12 crore, while profit before tax fell by Rs 12.00 crore to Rs 42.25 crore and profit after tax declined by Rs 11.01 crore to Rs 31.72 crore.

Total income, including other income, rose to Rs 347.78 crore in the September 2026 quarter from Rs 329.44 crore in the corresponding quarter a year earlier. Other income was Rs 7.65 crore, below Rs 8.53 crore a year earlier but above Rs 1.24 crore in the quarter ended June 30, 2026.

Sequentially, Flair Writing’s revenue increased from Rs 319.25 crore in the June 2026 quarter to Rs 340.12 crore in the September quarter. Profit after tax also rose from Rs 29.08 crore in June 2026, while profit before tax increased from Rs 38.97 crore to Rs 42.25 crore.

Why did Flair Writing’s profit decline despite higher sales?

Flair Writing’s profit declined because its total expenses rose by Rs 30.33 crore year on year, exceeding the Rs 18.34 crore increase in total income. Total expenses reached Rs 305.52 crore in the September 2026 quarter, compared with Rs 275.19 crore in the quarter ended September 30, 2025.

Material consumption increased to Rs 190.99 crore from Rs 179.20 crore, employee-benefit expense rose to Rs 59.48 crore from Rs 56.29 crore, and other expenses increased to Rs 55.65 crore from Rs 49.92 crore. Purchase of stock-in-trade was Rs 7.67 crore, against Rs 5.56 crore a year earlier, while depreciation and amortisation rose to Rs 14.64 crore from Rs 13.16 crore.

Inventory changes provided a Rs 24.22 crore reduction in expenses in the September 2026 quarter, compared with a Rs 29.68 crore reduction a year earlier. Finance costs were Rs 1.31 crore, compared with Rs 1.48 crore in the year-earlier quarter, but the wider change in operating cost lines coincided with profit before tax falling to Rs 42.25 crore.

Flair Writing reported total comprehensive income of Rs 31.95 crore for the September 2026 quarter, compared with Rs 42.38 crore a year earlier. The latest-quarter result included Rs 0.23 crore of other comprehensive income, compared with an other comprehensive loss of Rs 0.35 crore in the September 2025 quarter.

What do Flair Writing’s first-half results show?

Flair Writing’s consolidated profit after tax for the half year ended September 30, 2026 fell to Rs 60.80 crore from Rs 71.68 crore, while revenue from operations grew to Rs 659.37 crore from Rs 609.46 crore. The six-month revenue increase was Rs 49.91 crore, whereas profit after tax was lower by Rs 10.88 crore.

Total income for the April-to-September period was Rs 668.26 crore, compared with Rs 621.26 crore in the corresponding prior-year period. Total expenses increased by Rs 58.85 crore to Rs 587.04 crore, and profit before tax declined to Rs 81.22 crore from Rs 93.07 crore.

The half-year comparison followed the quarterly pattern of revenue growth alongside lower earnings. Total comprehensive income was Rs 60.83 crore for the half year ended September 30, 2026, against Rs 71.00 crore a year earlier, after other comprehensive income of Rs 0.02 crore in the latest period.

Flair Writing has one reportable segment, Writing Instruments & other allied(s), under Indian Accounting Standard 108, or Ind AS 108. The consolidated results include the holding company and four subsidiaries; the four subsidiaries reported combined revenue of Rs 102.77 crore and profit after tax of Rs 2.87 crore for the September 2026 quarter.

What changed in Flair Writing’s balance sheet and cash flow?

Flair Writing reported total assets of Rs 1,475.61 crore at September 30, 2026, compared with Rs 1,369.78 crore at March 31, 2026. Total equity increased to Rs 1,198.10 crore from Rs 1,142.55 crore over the same period, while property, plant and equipment increased to Rs 479.54 crore from Rs 454.26 crore.

Capital work in progress declined to Rs 34.44 crore at September 30, 2026 from Rs 60.00 crore at March 31, 2026. Inventories increased to Rs 393.33 crore from Rs 353.96 crore, and trade receivables rose to Rs 331.47 crore from Rs 273.37 crore.

Net cash generated from operating activities was Rs 32.23 crore for the half year ended September 30, 2026, down from Rs 55.83 crore in the corresponding prior-year period. The cash-flow statement showed a Rs 52.30 crore increase in trade receivables and a Rs 39.37 crore increase in inventories during the latest half year.

Flair Writing used Rs 20.41 crore in investing activities during the six months ended September 30, 2026, compared with Rs 55.47 crore used a year earlier. Financing activities used Rs 17.02 crore, and cash and cash equivalents closed at Rs 1.32 crore after a Rs 4.79 crore adjustment on initial application of an Ind AS 109 amendment on April 1, 2026.

Conclusion

Flair Writing’s September-quarter results show that the Rs 19.21 crore year-on-year increase in revenue did not translate into higher earnings, as total expenses increased by Rs 30.33 crore and profit after tax declined by Rs 11.01 crore. The same pattern appeared in the first half, when revenue rose to Rs 659.37 crore but profit after tax fell to Rs 60.80 crore.

The disclosed item to watch next is the interim dividend of Rs 0.50 per equity share declared by Flair Writing’s board on November 2, 2026. Future results will also show whether receivables, inventories and operating cash flow, which was Rs 32.23 crore in the first half, change alongside revenue and expense movements.