Linc Limited — PPTs, 13-08-2025: Investor Presentation

**1. Financial Highlights:**

Linc Ltd. reported Q1 FY26 revenue of ₹136.98 Cr (+5.3% YoY) with net profit at ₹7.05 Cr (-16.4% YoY). Operating EBITDA margin was 9.6% and PAT margin 5.1%. Management attributes the profit decline to temporary operational factors. The company maintains a strong net cash position of ₹21.21 Cr and robust net cash from operations of ₹22.11 Cr. Pentonic brand now contributes 37.4% of revenue.

**2. Strategic Initiatives & Growth Drivers:**

New products like SWYPE markers and Pentonic mechanical pencils are showing positive consumer response, with full rollout expected to boost sales. The company plans to increase brand spending to ~3% of revenue and is expanding its footprint in West and South India. A strong focus remains on premiumization with higher-margin products like Pentonic (44% GPM).

**3. Business Developments:**

Joint ventures are progressing: Mitsubishi Pencil Co. JV is set to commence operations by Oct 2025. The Morris (Korea) JV is tied to the new Bengal manufacturing facility, on track for Q4 FY26. Efforts continue with the Turkish partner JV and the developing Kenya subsidiary.

**4. Market Position & Competitive Advantage:**

Linc stands among the top 3 writing instrument brands in India, leveraging over four decades in the affordable segment and an extensive national and international network. It is increasing average selling prices by focusing on higher-priced products.

**5. Investor Implications:**

Despite Q1 challenges, management signals these are transient, anticipating better performance ahead. The strong balance sheet, coupled with strategic investments in product innovation, capacity expansion, and international growth, points to a positive growth potential for long-term value creation.