Education – Jul-Sep’26 Earnings Preview – RM inflation continues to weigh on margins
Published on 07 Oct 2026
While education companies under our coverage are expected to report 12.2% YoY growth in topline, continued raw material inflation is likely to put pressure on margins. DOMS IN is likely to report 16.5% YoY growth in topline driven by the core stationery business. However, FLAIR IN is likely to report a growth of 4.5% YoY impacted by export headwinds linked to geopolitical tensions in West Asia and production loss arising from excessive rains in Gujarat. Margin pressure is expected to persist given elevated crude-linked input costs, with DOMS IN's EBITDA margin likely to contract 567bps YoY to 11.9% while FLAIR IN's EBITDA margin is likely to decline 296bps YoY to 15.8%. Retain ‘BUY’ on DOMS IN with TP of INR2,783 and FLAIR IN with TP of INR397.
