Education – Apr-Jun’26 Earnings Preview – RM inflation to weigh on margins
Published on 08 Jul 2026
While education companies under our coverage are expected to report 15.9% YoY growth in topline, persistent raw material inflation is likely to weigh on profitability across the sector. DOMS IN is likely to report 18.5% YoY growth in topline led by the core stationery business. However, FLAIR IN is likely to report modest growth of 10.8% YoY amid export headwinds arising from the geopolitical tensions in West Asia.
Margin pressure is expected to persist given elevated crude-linked input costs, with DOMS IN's EBITDA margin likely to contract 430bps YoY to 13.3% while FLAIR IN's EBITDA margin is likely to decline 220bps YoY to 15.0%. We believe margin headwinds are transitory as raw material prices have started softening and mid-single digit price hike has been taken by both the players. Retain ‘BUY’ on DOMS IN with TP of INR2,850 and FLAIR IN with TP of INR406.
