Flair Writing Industries Receives Partial Relief in CGST Appeal for FY 2020-21

Flair Writing Industries Limited has received a modified order from the Appellate Authority under Section 73 of the CGST Act, 2017, providing significant relief in tax proceedings for FY 2020-21. The company disclosed this development through a regulatory filing dated February 06, 2026, pursuant to Regulation 30 of SEBI listing regulations.

Previous Tax Relief for FY 2017-18

The company had earlier received complete relief for FY 2017-18, where proceedings under Section 74 of the CGST Act were entirely dropped by the Office of the Additional Commissioner of CGST & C. Ex., Mumbai East Commissionerate. This had eliminated a total liability of Rs. 29,30,542/-, comprising IGST demand of Rs. 14,65,271/- and an equivalent penalty.

FY 2017-18 Relief:	Amount (Rs.)
IGST Demand Dropped:	14,65,271/-
Penalty Waived:	14,65,271/-
Total Relief:	29,30,542/-

Latest Appellate Order for FY 2020-21

The recent development pertains to a separate case for FY 2020-21, where the company had initially received an Order-in-Original dated January 30, 2025. The original order had disallowed Input Tax Credit (ITC) aggregating to Rs. 49,32,741/- and imposed a penalty of Rs. 4,93,274/-.

Following the company's reply and submissions before the appropriate authority, the Appellate Authority has modified the original order, providing substantial relief to the company.

Original vs Modified Order:	Original Amount (Rs.)	Modified Amount (Rs.)	Relief (Rs.)
ITC Disallowance:	49,32,741/-	6,68,664/-	42,64,077/-
Penalty:	4,93,274/-	66,886/-	4,26,388/-
Total Reduction:	54,26,015/-	7,35,550/-	46,90,465/-

Authority Details and Timeline

The modified order was received from the Office of the Additional Commissioner of CGST & C. Ex., Mumbai East Commissionerate on February 05, 2026. The appellate proceedings were conducted under Section 73 of the CGST Act, 2017, which deals with determination of tax not paid or short paid or erroneously refunded.

Case Parameters:	Details
Authority:	Office of the Additional Commissioner of CGST & C. Ex., Mumbai East Commissionerate
Order Type:	Appellate Authority under Section 73 of CGST Act, 2017
Financial Year:	2020-21
Order Receipt Date:	February 05, 2026
Original Order Date:	January 30, 2025

Company's Response and Future Course

The company has indicated that it will file an appeal challenging the modified order based on strong merits by submitting its reply and submissions before the relevant authorities. This suggests that Flair Writing Industries believes it has grounds to contest even the reduced liability.

The company has stated that there is no material impact on its financials, operations, or other activities due to this development. The impact will be limited to the extent of final tax liability as may be determined, along with any applicable interest and penalty.

Business Impact Assessment

With the substantial reduction in tax liability from Rs. 54.26 lakh to Rs. 7.36 lakh, representing an 86.45% decrease, the company has achieved significant financial relief. This positive development, combined with the complete relief received for FY 2017-18, demonstrates the company's effective approach to handling tax disputes and its commitment to maintaining compliance while protecting shareholder interests.

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-0.68%	-7.73%	-7.95%	-4.25%	+25.87%	-37.09%

Flair Writing Industries Limited has announced its unaudited financial results for the quarter and nine months ended December 31, 2025, showcasing robust performance across key financial metrics. The Board of Directors, in their meeting held on January 29, 2026, approved the quarterly results and declared an interim dividend for shareholders. Following the results announcement, the company conducted an investor call on January 30, 2026, providing detailed insights into its performance and strategic initiatives.

Consolidated Financial Performance

The company delivered strong consolidated financial results for Q3FY26, demonstrating significant year-over-year growth across revenue and profitability metrics.

Metric	Q3FY26	Q3FY25	Nine Months FY26	Nine Months FY25
Revenue from Operations	₹31,769.85 lakhs	₹26,454.77 lakhs	₹92,715.63 lakhs	₹78,181.52 lakhs
Total Income	₹32,081.90 lakhs	₹27,107.19 lakhs	₹94,208.16 lakhs	₹79,838.61 lakhs
Net Profit After Tax	₹3,314.04 lakhs	₹2,926.88 lakhs	₹10,482.16 lakhs	₹8,824.49 lakhs
Basic EPS	₹3.11	₹2.78	₹9.87	₹8.42

The consolidated revenue from operations increased substantially to ₹31,769.85 lakhs in Q3FY26 from ₹26,454.77 lakhs in the corresponding quarter of the previous year. For the nine-month period, consolidated revenue reached ₹92,715.63 lakhs compared to ₹78,181.52 lakhs in the previous year, reflecting strong business momentum.

Management Commentary on Performance

During the investor call, Managing Director Vimalchand Rathod highlighted the company's exceptional performance, stating that Q3FY26 was marked by robust 20.1% year-on-year revenue growth, 25.7% increase in EBITDA, and 13.2% increase in PAT. The management emphasized that their revenue growth has consistently surpassed the stated guidance of delivering a 15% CAGR, reflecting sustained momentum across business segments.

Performance Metrics	Q3FY26 Details
Revenue Growth	20.1% year-on-year
EBITDA Growth	25.7% year-on-year
EBITDA Margin	17.9% (up 80 bps)
PAT Growth	13.2% year-on-year
PAT Margin	10.4%

CFO Alpesh Porwal noted that EBITDA for the quarter was ₹56.9 crores, with margins improving due to operating leverage benefits from various business transformation initiatives, including increased automation and deeper distribution relationships.

Segment-wise Business Performance

The company's diversified portfolio showed strong performance across all segments, with Creative and Steel Bottle segments leading growth.

Pens Segment

Parameter	Q3FY26	Nine Months FY26
Revenue Growth	7.3% year-on-year	4.7% year-on-year
Volume Growth	6%	3%
Own Brand Volume Growth	18%	11%
Average Realization	₹5.40 per piece	Stable

Creative Segment

Metrics	Q3FY26	Nine Months FY26
Primary Sales	₹77.00 crores	₹211.00 crores
Growth Rate	68.7% year-on-year	71.8% year-on-year
Product Portfolio	240 offerings	18 categories
New Products Launched	28 in Q3	Ongoing expansion

Steel Bottles & Houseware

Details	Q3FY26	Nine Months FY26
Primary Sales	₹25.00 crores	₹64.00 crores
Growth Rate	116.2% year-on-year	102.2% year-on-year
Product Range	50+ SKUs	Continuous expansion

Interim Dividend Declaration

The Board of Directors declared an interim dividend of ₹0.50 per equity share of face value ₹5 each for the financial year 2025-26, representing 10% of the face value.

Dividend Details	Specification
Interim Dividend	₹0.50 per share
Face Value	₹5 per share
Record Date	February 4, 2026
Percentage of Face Value	10%

Strategic Initiatives and Expansion Plans

During the investor call, management outlined several strategic initiatives driving growth. The company's in-house manufacturing share has risen to 75%, enhancing operating efficiency and quality control. The new Valsad facility is slated to become partially operational in Q4, further strengthening manufacturing capacity.

Expansion Details	Status
Valsad Unit	Partial operations in Q4
Flomaxe CAPEX	₹9.60 crores invested
New Building Construction	₹8.28 crores, completion in Q1 FY27
In-house Manufacturing	75% current, targeting 80%+

The company also highlighted strategic partnerships, including licensing agreements with Disney for character-based products and distribution alliance with Maped France for premium Creative products.

Export Performance and Market Recognition

The company demonstrated strong export performance with overall export growth of 26.5% in Q3FY26. Export own brand sales grew by 29.9%, while OEM exports increased by 22.4%. The company was honored with the "Export Excellence Award '23-'25" at the PLEXCONCIL Platinum Jubilee Celebration, reinforcing its leadership as a key exporter of writing instruments and stationery from India.

Export Metrics	Performance
Overall Export Growth	26.5% in Q3FY26
Export Own Brand Growth	29.9% in Q3FY26
Nine Months Export Sales	₹155.75 crores (26.1% growth)
Key Markets	US, UAE, Switzerland, Japan, South America

Future Outlook

Management expressed confidence in surpassing their 15% CAGR guidance for FY26 and maintaining higher growth trajectory over the next two years. The company expects to benefit from new facility commissioning, expanded product portfolio, and strategic partnerships. With high growth visibility and strong fundamentals across diversified segments, Flair Writing Industries is well-positioned to deliver sustained long-term growth and maintain industry leadership.