Flair Writing Industries Ltd

GST demand update

• Regulatory action: Show Cause Notice under CGST/SGST/IGST for FY2022-23.
• Tax demand: Rs 3,107,836.98; no penalties, interest or fees levied.
• Date of receipt: 29 September 2026.
• Company to file reply; final impact depends on assessment.
• No current material impact on financials; contingent liability to extent of final tax.

Flair Writing Industries Limited trading window closed from Oct 01, 2026 until 48 hours after the unaudited financial results for the quarter and six months ending Sep 30, 2026 are declared.

Meeting Details

• Tuesday, September 22, 2026, 10:00 AM to 3:00 PM IST
• In-person, one-to-one and group meetings with investors
• Anand Rathi Annual Flagship Conference – G-200 Summit 2026
• Company Secretary and Compliance Officer
• Purpose: investor/analyst interaction based on publicly available information

CGST Show Cause Notice

• Show Cause Notice under Section 73 CGST Act 2017 received Aug 31, 2026.
• Earlier audit flagged Rs 78,80,221 for FY2022-23.
• Current SCN quantifies liability at Rs 26,27,665: tax Rs 14,89,386; interest Rs 9,89,341; penalty Rs 1,48,938.
• The company will submit its reply and pursue merits; no material impact on financials or operations.
• Possible liability to be determined upon adjudication; impact depends on final liability.
• Disclosure made under SEBI LODR Regulation 30; pertains to regulatory proceeding.

AGM Details

• Date: August 27, 2026; Time: 3:00 PM IST; Mode: VC/OAVM.
• Voting cut-off, i.e., record date: August 19, 2026.
• Attendees: 63 members; 2 voted at AGM; remote voting Aug 24–26, 2026.

Resolutions and outcomes

• Resolution 1: Adopt financial statements; ordinary; passed 99.9999% in favour.
• Resolution 2: Dividend Rs 0.50 per share; ordinary; passed 99.9999% in favour.
• Resolution 3: Re-appoint Vimalchand Jugraj Rathod on rotation; ordinary; passed.
• Resolution 4: Re-appoint Mohit Khubilal Rathod on rotation and as Whole-time Director; ordinary; passed.
• Resolution 5: Appoint Statutory Auditor for five years from FY 2026-27; ordinary; passed.
• Resolution 6: Re-appoint Mohit Khubilal Rathod as Whole-time Director for five years; ordinary; passed.
• Resolution 7: Re-appoint Sumit Vimalchand Rathod as Whole-time Director for five years; ordinary; passed.
• All resolutions passed with requisite majority.

Director changes

• Vimalchand Jugraj Rathod: Re-appointed on rotation.
• Mohit Khubilal Rathod: Re-appointed on rotation and as Whole-time Director for five years.
• Sumit Vimalchand Rathod: Re-appointed as Whole-time Director for five years.

Auditor appointment

• Statutory Auditor appointed for five-year term from FY 2026-27.

Dividend

• Dividend: Rs 0.50 per equity share approved.

Re-appointment of Whole-time Directors

• Mohit Khubilal Rathod re-appointed as Whole-time Director for five years, 01-Apr-2027 to 31-Mar-2032.
• Reason: shareholders approved the term at the EGM held on 25 Mar 2022.
• Mohit Rathod is Executive Director; 26 years in marketing and business administration.
• Relationship: Son of promoter Chairman Khubilal Rathod; brother of Rajesh Rathod.
• Sumit Vimalchand Rathod re-appointed as Whole-time Director for five years, 01-Apr-2027 to 31-Mar-2032.
• Sumit Rathod is Executive Director; 18 years in production and manufacturing.
• Relationship: Son of promoter Vimalchand Rathod; nephew of Khubilal Rathod.
• Not debarred by SEBI or other authorities.

Auditor appointment

• Shareholders approved the appointment at the 10th AGM held August 27, 2026.
• Statutory Auditors appointed for five years from Apr 01, 2026 to Mar 31, 2031.

AGM Details

• AGM held on 27 August 2026, 03:00–03:55 IST; VC/OAVM mode.
• No physical attendance; quorum met; meeting webcast via InstaMeet.
• E-voting available post-AGM; results to be declared within 2 working days.

Key Resolutions

• Resolution 1 (Ordinary): Adopt Audited Financial Statements (Standalone & Consolidated) for FY ended March 31, 2026.
• Resolution 2 (Ordinary): Declare dividend of Rs 0.50 per equity share (face value Rs 5).
• Resolution 3 (Ordinary): Re-appoint Vimalchand Jugraj Rathod as Director.
• Resolution 4 (Ordinary): Re-appoint Mohit Khubilal Rathod as Director.
• Resolution 5 (Ordinary): Appoint Price Waterhouse Chartered Accountants LLP as Statutory Auditor for five years from FY 2026-27.
• Resolution 6 (Ordinary): Re-appoint Mohit Khubilal Rathod as Whole-time Director for five years.
• Resolution 7 (Ordinary): Re-appoint Sumit Vimalchand Rathod as Whole-time Director for five years.

Dividend

• Dividend of Rs 0.50 per equity share approved (face value Rs 5).

Director Changes

• Re-appoint Vimalchand Jugraj Rathod as Director (retiring by rotation).
• Re-appoint Mohit Khubilal Rathod as Director (retiring by rotation).

Auditors

• Price Waterhouse Chartered Accountants LLP appointed as Statutory Auditor for five years from FY 2026-27.

Voting Status

• Results of remote e-voting and AGM vote to be declared within 2 working days.

Financial Performance

• Revenue from operations: INR 319.2 crores; up 10.6% YoY.
• EBITDA: INR 53.3 crores; up 7.7% YoY; EBITDA margin 16.7%.
• PAT: INR 29.1 crores; PAT margin 9.1%.
• Gross margin: 49.7% in Q1 FY27; about 1.5 percentage points lower YoY.
• Pen segment revenue: INR 220 crores; up 9% YoY.
• Creative segment: INR 80 crores; up 23% YoY; 10 new products.
• Steel Bottles & Houseware: INR 19 crores; up 54.3% YoY.

Segment Trends

• Domestic sales: INR 277 crores; Exports: INR 43 crores; exports broadly flat.
• Combined Creative and Steel Bottles & Houseware share ~31% of FY26 revenue; target 35–38% in FY27.
• Cyrosil fourth line: commissioning by Q4 FY27; capacity +30–35%.
• Valsad capacity: capex ~INR 15 crores; potential revenue ~INR 30–35 crores.

Capex and Projects

• Q1 capex: INR 43.42 crores; Valsad capex: INR 33.25 crores.
• Surat facility capex: INR 0.387 crores for molds.
• Valsad capex-to-revenue ~3x; growth horizon ~1.5 years.
• ERP implementation underway; benefits start in 2–3 months; inventory optimization.

Guidance and Outlook

• FY27 revenue growth guidance reiterated at 15% YoY.
• Three-year CAGR guidance: 15% easily achievable.
• EBITDA margin target: 17.5%–18% (MD); 17% cited in Q&A.
• Exports to remain important; West Asia disruptions push geographic diversification.

Q&A Highlights

• Q1 gross margin declined; expect stabilization over next three quarters.
• Pricing actions: 10–15% raw-material price hikes; margins partially protected.
• Pens growth: 9% YoY; domestic and export volumes-driven; market-share focus.
• Capex expansion: steel-bottle utilization ~65%; add 35% capacity; new line.
• OEM: domestic OEM fully phased out; export OEM affected by West Asia.
• Pens market share ~18% per CRISIL; Reynolds takeover acknowledged.

Meeting Details

• Date: August 12, 2026
• Type/Mode: earnings conference call; virtual audio
• Organizer: Flair Writing Industries Limited

Participants

• Participants: no management names disclosed

Purpose

• Purpose: discuss quarterly results for quarter ended June 30, 2026

Additional Notes

• Audio recording available; accessible on the company site