Linc reports steady Q2 revenue despite joint venture losses

Linc Limited announced 1.3% year-over-year revenue growth for Q2 FY '26, reaching an operating income of INR13,907 lakhs. Despite this growth, net profit saw a 3.7% dip, largely attributed to losses of INR168 lakhs from early-stage joint ventures. Operating EBITDA for the quarter stood at INR1,567 lakhs, with a margin of 11.3%, impacted by higher employee costs due to scheduled annual increments. The company aims for double-digit growth by the end of the year, focusing on improving performance in the second half.

The company highlighted strategic partnerships, with Mitsubishi Pencil Company Japan commencing operations in October 2025 and the upcoming Bengal manufacturing facility for Morris on track for commissioning in Q4 FY '26. Efforts are also underway to streamline the Turkish joint venture and improve traction in the Kenya subsidiary. Inventory days have improved, reaching 62 days from previous levels of 90-100 days, and are expected to remain within the 60-65 day range.

New product launches, including the Swype marker range and Pentonic mechanical pencils, are expected to be key growth drivers, with plans for pan-India rollout by the end of the financial year. Exports are gaining momentum, particularly in the Middle East and Latin American markets. Stationery products currently represent an insignificant portion of overall revenue, around 10-12%.