Domestic stationery grew 26%, but exports fell 9% in Q1
Management said curriculum-change spillover delayed publication growth, while an underused polymer plant and investments weighed on stationery profitability.
Filed 28 Jul 2026, 14:03 IST · NAVNETEDUL (NAVNETEDUL)
Key takeaways
- Domestic stationery revenue grew +26% to Rs 146 cr, while export stationery revenue fell -9% to Rs 234 cr.
- Consolidated operating margin was 25.13%, with management citing an underutilized polymer plant and investment in branding and staff as profitability pressures.
- Management said publication growth was delayed by curriculum-change-related spillover from Q1 to Q2 and expects reasonable growth in the segment.
Domestic stationery offset a weaker export quarter
Navneet Education's consolidated Q1FY27 performance reflected a shift in business mix rather than broad-based growth. Domestic stationery was the fastest-growing vertical, with revenue rising +26% to Rs 146 cr, while export stationery revenue declined -9% to Rs 234 cr from Rs 256 cr. Management said publication growth was not reflected in Q1 because business spilled over into Q2 amid curriculum changes.
Polymer underutilisation and investment weighed on margins
The consolidated operating margin was 25.13%, as the export weakness affected utilisation of the polymer plant that was mainly set up for overseas business. Management also said spending on branding and additional key employees was weighing on non-paper stationery profitability despite higher growth. Other income of Rs 19 cr was not the main earnings driver against profit before tax of Rs 193 cr.
Management sees a mix shift toward publishing and domestic stationery
Management said it expects reasonable growth in the publication segment and will assess the effect of curriculum changes over H1 FY27. It also said branding and non-paper stationery could provide long-term benefits, with investment and additional key hires forming part of that plan. The company described the business as undergoing a structural mix shift toward publishing and domestic stationery while overseas traction temporarily weakens.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹788 cr |
| Other income | ₹19 cr |
| Expenses | ₹590 cr |
| Operating profit | ₹198 cr |
| Operating margin (%) | 25.13% |
| Interest | ₹5 cr |
| Depreciation | ₹19 cr |
| Profit before tax | ₹193 cr |
| Tax | ₹52 cr |
| Net profit | ₹141 cr |
| EPS (₹) | ₹6.41 |
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 stationery was the fastest-growing business, supported by stronger local demand and increased domestic market penetration.
- The business is undergoing a structural mix shift toward publishing and domestic stationery while overseas traction temporarily weakens.
Guidance & outlook
- Management expects reasonable growth in the publication segment and will assess the curriculum change impact over H1 FY27.
- Management expects long-term benefits from branding and growth in non-paper stationery.
New initiatives
- The company plans to invest in branding and appoint additional key employees for non-paper stationery.
Problems & risks
- Publication growth was not reflected in Q1 because business spilled over from Q1 to Q2 amid curriculum changes.
- International headwinds affected the export stationery business, which declined during the quarter.
- The polymer plant was underutilized because it was mainly invested for exports, reducing stationery segment profitability.
- Investments in branding and additional non-paper stationery employees are weighing on segment profitability despite higher growth.
What to watch
- Whether publication growth becomes visible after the Q1-to-Q2 spillover and how it compares with the 25.13% operating margin.
- Whether export stationery recovers from Rs 234 cr after the -9% decline.
- Whether domestic stationery sustains its +26% growth from Rs 116 cr to Rs 146 cr.