Education – Jan-Mar’26 Earnings Preview – RM cost inflation is rearing its head
Published on 08 Apr 2026
Education companies under our coverage are expected to report a modest 14.6% YoY growth in topline amid rising export headwinds given the ongoing geo-political tensions in West Asia. DOMS IN is likely to report a 17.0% YoY growth in topline led by stationary business. On the other hand, FLAIR IN is expected to report topline growth of 10.6% YoY (lowest in last 5 quarters) led by weak exports. Initial signs of margin pressure is also evident amid rising crude prices as DOMS IN is expected to report an EBITDA margin of 16.3% (down 100bps YoY). Though FLAIR IN’s EBITDA margin is expected to increase 140bps YoY; the base was low amid inferior product mix and on sequential basis EBITDA margin is likely to contract 80bps YoY to 17.1%. Given rising RM prices we have cut our EPS estimates for DOMS IN and FLAIR IN by ~6-8% and ~6-10% respectively over the next 2 years.
