Linc Limited Reports Mixed Q2 Results: Revenue Growth Amid Margin Pressure

Linc Limited , one of India's leading writing instrument manufacturers, has released its financial results for the second quarter, revealing a mixed performance with modest revenue growth and some pressure on margins.

Revenue Growth and Market Presence

Linc Limited reported a 1.3% year-on-year increase in revenue for Q2, reaching ₹13,907.00 lacs. The company's flagship brand, Pentonic, continued to show strong performance, contributing 35.6% to the total revenue. Exports played a significant role, accounting for 21.2% of the total revenue, indicating the company's growing international presence.

Financial Performance Highlights

Here's a breakdown of Linc Limited's key financial metrics for Q2:

Metric	Q2 Value	YoY Change
Revenue	₹13,907.00 lacs	+1.3%
Operating EBITDA Margin	11.3%	-3.8%
Profit After Tax (PAT)	₹846.00 lacs	-3.7%
PAT Margin	6.0%	-0.4%

The company's operating EBITDA margin saw a decline of 3.8% compared to the same quarter last year, primarily due to higher employee costs arising from scheduled annual increments. Net profit experienced a 3.7% decrease, largely attributed to losses of ₹167.75 lacs from joint ventures, which the company views as transitional losses from early-stage investments.

Strategic Initiatives and Product Launches

Linc Limited has been actively expanding its product portfolio and market reach:

New Product Launches: The company introduced the SWYPE marker range and Pentonic mechanical pencils, which have received positive initial consumer response.
Joint Venture Operations: A partnership with Mitsubishi Pencil Co. commenced in October, launching a new ₹20.00 ball pen for Indian and ASEAN markets.
Manufacturing Expansion: The Bengal manufacturing facility is on track to begin operations in Q4, which is expected to enhance production capabilities.

Financial Position

As of September 30, Linc Limited maintains a strong financial position:

Metric	Value
Net Cash from Operating Activities	₹2,625.00 lacs
Net Debt to Equity	(0.23)
Return on Capital Employed (Annualized)	18.2%
Return on Equity (Annualized)	13.0%

The negative net debt to equity ratio indicates that the company has more cash than debt, reflecting a healthy balance sheet.

Management Outlook

Deepak Jalan, Managing Director of Linc Limited, expressed confidence in the company's strategic direction despite the current challenges. He stated, "While the pace of growth has not met our own expectations, we remain confident that the groundwork we have laid will begin to show results in the coming quarters."

The management believes that recent product launches and strategic initiatives, including international partnerships and joint ventures, will drive growth in the coming quarters. They acknowledge that the journey has taken longer than anticipated but remain optimistic about the company's long-term prospects.

Conclusion

Linc Limited's Q2 results reflect a company in transition, balancing short-term challenges with long-term strategic investments. While revenue growth has been modest and margins have faced some pressure, the company's focus on product innovation, brand building, and international expansion suggests a clear strategy for future growth. Investors and market watchers will likely keep a close eye on how these initiatives translate into financial performance in the coming quarters.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
+2.94%	-1.19%	-8.59%	-18.40%	-26.08%	+153.68%

Linc Limited , a prominent player in the writing instruments and stationery segment, has reported a significant increase in profit for the quarter ended September 30, 2025. The company's financial performance shows robust growth in profitability despite modest revenue gains.

Key Financial Highlights

Profit After Tax: Rose to Rs 1,016.39 lakhs, up 38.7% from Rs 732.75 lakhs in the previous quarter.
Revenue from Operations: Increased marginally to Rs 13,563.05 lakhs from Rs 13,430.40 lakhs in the previous quarter.
Half-Year Performance: Profit reached Rs 1,749.14 lakhs, compared to Rs 1,714.75 lakhs in the corresponding period.
Earnings Per Share: Basic EPS stood at Rs 6.81 for the quarter.

Financial Performance Breakdown

The company's financial results for Q2 and H1 FY2026 are summarized in the following table:

Particulars (Rs. in Lakhs)	Q2 FY2026	Q1 FY2026	Q2 FY2025	H1 FY2026	H1 FY2025
Revenue from Operations	13,563.05	13,430.40	13,464.37	26,993.45	26,239.67
Total Income	13,799.91	13,557.07	13,466.82	27,356.98	26,380.31
Total Expenses	12,450.57	12,572.43	12,285.97	25,023.00	24,073.95
Profit Before Tax	1,349.34	984.64	1,180.85	2,333.98	2,306.36
Profit After Tax	1,016.39	732.75	877.81	1,749.14	1,714.75

Operational Insights

Linc Limited has demonstrated strong cost management, with total expenses decreasing quarter-on-quarter despite a slight increase in revenue. This efficient cost control has contributed significantly to the profit surge.

The company's performance in the writing instruments and stationery segment remains robust, maintaining its position in the market. The marginal increase in revenue suggests steady demand for Linc's products.

Board Approval and Regulatory Compliance

The Board of Directors approved these unaudited financial results at their meeting held on November 8, 2025. The results have been subject to limited review by the statutory auditors as required under SEBI regulations.

Market Position and Future Outlook

Linc Limited continues to operate in a single reportable segment of writing instruments and stationery. The company's strong profit growth despite modest revenue increase indicates improved operational efficiency and potentially favorable market conditions.

As the company moves forward, its focus on maintaining profitability while seeking growth opportunities may be key to its future performance in the competitive stationery market.

Investors and market observers will likely keep a close watch on Linc Limited's performance in the coming quarters, particularly its ability to sustain this profit growth and potentially accelerate revenue expansion.