Flair Writing Industries (FLAIR IN) – Q1FY27 Result Update – Good margin show in an inflationary environment – BUY
Published on 12 Aug 2026
In an inflationary environment, FLAIR IN reported steady margin performance with GM at 49.7% (PLe 47.8%) and EBITDA margin at 16.7% (PLe 15.0%). However, top-line growth of 10.6% was a bit modest as export revenue remained flat amid West Asia conflict. Led by operationalization of Valsad plant in 2HFY27E, healthy traction in pens portfolio (growth at a 6-quarter high); and capacity expansion in the steel bottle segment (4th line expected to be commissioned in 4QFY27E), we expect revenue CAGR of 15% over FY26-FY28E. Further, calibrated measures like rationalization of schemes/discounts and selective price hikes is set to cushion margins from inflationary pressure. Thus, we expect EBITDA margin of 16.5%/18.3% in FY27E/FY28E respectively. The stock trades at an attractive valuation of 19x/14x over our FY27E/FY28E EPS estimates (DOMS IN trades at 64x/41x over our FY27E/FY28E EPS estimates) and we believe the recent correction offers a good entry point from a long-term perspective. Maintain BUY with a TP of INR409 (23x FY28E EPS; no change in target multiple).
