Flair Writing Q2 FY27 Results (NSE: FLAIR)
Signal: Margin pressure
The read
The trajectory has shifted from double-digit growth to 6.0% YoY revenue growth in Q2FY27, while EBITDA margin fell 390bps YoY to 14.9% and PAT declined 25.8% to ₹31.7 Cr; the key inflection is margin deterioration despite continued sequential growth, with Creative Products still providing the clearest diversification momentum at 24% H1 growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹340.1 Cr | 6.0% | 6.5% |
| Net profit | ₹31.7 Cr | -25.8% | |
| EBIT margin | 14.9% |
P&L walk
Revenue grew 6.0% YoY and 6.5% QoQ to ₹340.1 Cr, but gross profit fell 0.5% YoY and EBITDA declined 16.2% to ₹50.6 Cr as gross margin contracted to 48.7% and EBITDA margin to 14.9%; PAT fell 25.8% YoY to ₹31.7 Cr despite rising 9.1% QoQ.
Key positives
- Revenue increased 6.0% YoY to ₹340.1 Cr and 6.5% QoQ, supported by domestic sales of ₹292 Cr, up 5.5% QoQ.
- Exports rose 13.0% QoQ to ₹49 Cr, outpacing domestic growth in Q2FY27.
- Creative Products grew 24% on an H1 basis despite an average 15-day manufacturing disruption at the Valsad and Daman facilities.
- The new Creative manufacturing line at Valsad is expected to be partially operational in Q3FY27, while the fourth steel-bottle line is targeted for Q4FY27.
Key concerns
- Gross margin compressed 320bps YoY to 48.7% as gross profit declined 0.5% to ₹165.7 Cr despite 6.0% revenue growth; the filing does not disclose the cause.
- EBITDA margin fell 390bps YoY to 14.9%, with EBITDA down 16.2% YoY to ₹50.6 Cr, indicating negative margin flow-through on revenue growth.
- PAT declined 25.8% YoY to ₹31.7 Cr, materially lagging the 6.0% revenue increase.
- Q2FY27 revenue growth of 6.0% is below the 10.4% YoY growth reported in Q1FY27 and the 20.0% growth in Q3FY26, showing continued growth deceleration.
Research and educational content only. Not investment advice.