Revenue more than doubled, but Flair’s operating margin narrowed
Costs grew faster than revenue, while other income contributed 10.95% of pre-tax profit in the consolidated Q2FY27 results.
Filed 02 Nov 2026, 21:18 IST · after market close · Flair Writing Industries Ltd (FLAIR)
Key takeaways
- Consolidated net profit rose +109.08% sequentially, but operating margin narrowed 0.95 percentage points to 15.76%.
- Expenses grew +108.90% sequentially against revenue growth of +106.54%, while other income contributed 10.95% of pre-tax profit.
- Operating margin was 3.64 percentage points above the 12.12% median of 41 FMCG peers that had reported.
Price around the results
Q2FY27 growth came with a modest margin trade-off
Flair Writing Industries reported consolidated revenue of Rs 659.37 cr in Q2FY27, up +106.54% sequentially, while net profit rose +109.08% to Rs 60.8 cr. Operating profit increased +94.79%, slower than revenue, which explains the margin narrowing to 15.76% from 16.71% in Q1FY27. EPS rose to Rs 5.68 from Rs 2.71.
Higher costs and interest weighed on operating leverage
Expenses grew +108.90% sequentially, outpacing revenue growth of +106.54%, and reduced operating margin by 0.95 percentage points. Interest expense increased +103.15%, while the tax rate fell 0.22 percentage points to 25.14%. Other income accounted for 10.95% of pre-tax profit, so reported profit also received a meaningful contribution outside operations.
Margin remained above the reported FMCG peer median
Flair’s 15.76% operating margin was 3.64 percentage points above the 12.12% median for 41 FMCG peers that had reported the same quarter. Management said domestic sales increased +5.5% sequentially to Rs 292 cr in Q2FY27. With only Q1FY27 available in the reported trend, the quarter shows a sequential margin decline rather than a multi-quarter pattern.
Capacity additions and new distribution partnerships are in progress
Management said commercial operations for the fourth steel-bottle line are expected to begin in Q4 FY27. The company also said it is expanding capacity at the Flomaxe Surat facility and expects installed writing-instrument and stationery capacity to increase with partial commencement of the new Valsad and Surat facilities. Management said its Maped France partnership will distribute products in India and expand the Creative segment; the company also has a Disney licensing agreement covering stationery, art products and kits.
Results were filed after market close
The company filed the consolidated Q2FY27 results after market close on 2 Nov 2026 at 21:18 IST. The first trading-session response will provide the market context for this quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹659 cr | ₹319 cr | +106.54% |
| Other income | ₹9 cr | ₹1 cr | +616.94% |
| Expenses | ₹555 cr | ₹266 cr | +108.90% |
| Operating profit | ₹104 cr | ₹53 cr | +94.79% |
| Operating margin (%) | 15.76% | 16.71% | — |
| Interest | ₹3 cr | ₹1 cr | +103.15% |
| Depreciation | ₹29 cr | ₹14 cr | +102.02% |
| Profit before tax | ₹81 cr | ₹39 cr | +108.42% |
| Tax | ₹20 cr | ₹10 cr | +106.68% |
| Net profit | ₹61 cr | ₹29 cr | +109.08% |
| EPS (₹) | ₹5.68 | ₹2.71 | +109.59% |
Operating margin of 15.76% compares with a Fast Moving Consumer Goods sector median of 12.12% across 41 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Domestic sales increased 5.5% quarter on quarter to ₹292 crore in Q2 FY27.
Guidance & outlook
- Commercial operations for the new fourth steel-bottle line are expected to begin in Q4 FY27.
Expansion
- The company is expanding current capacity at its Flomaxe Surat facility.
- Installed writing-instrument and stationery capacity is expected to increase with partial commencement of the new Valsad and Surat facilities.
New initiatives
- The company has partnered with Maped France to distribute its products in India and expand its Creative segment.
- The company has had a Disney licensing agreement since March 2024 covering stationery, art products and kits.
What to watch
- Whether operating margin holds above 15.76% after the 0.95 percentage-point sequential decline.
- Whether domestic sales build on Rs 292 cr and the +5.5% sequential increase reported for Q2FY27.
- Whether the fourth steel-bottle line begins commercial operations in Q4 FY27, as management said.