Linc Limited's Q2 FY26 results show steady revenue growth despite some challenges.

1. **Business Performance:** Revenue for Q2 FY26 grew 1.3% year-on-year to ₹139.07 Cr.

Operating EBITDA margin saw a 3.8% decline, mainly due to higher employee costs.

Net profit dipped 3.7% to ₹8.46 Cr, impacted by ₹1.68 Cr in losses from early-stage joint ventures.

Pentonic continues to drive growth, with its revenue share increasing.

Strong channel performance was seen in Modern Trade (+120.1%), E-Commerce (+50.0%), and Exports (+27.4%). 2. **Growth Drivers or Strategy:** The company is focusing on new product innovation, with positive early responses to the SWYPE marker range and Pentonic mechanical pencil.

Strategic efforts include increasing market footprint in West and South India, boosting brand spending to ~3% of revenue, and concentrating on higher-margin products like Pentonic (GPM ~44%). 3. **Recent Developments:** The JV with Mitsubishi Pencil Co. (Japan) began operations in October 2025, launching a new ₹20 ball pen for India and ASEAN markets.

The Bengal manufacturing facility for the Morris (Korea) JV is on track for Q4 FY26. 4. **Key Financial Metrics:** * Operating Income: ₹139.07 Cr (+1.3% YoY) * Operating EBITDA: ₹15.67 Cr (-3.8% YoY), Margin 11.3% * Profit After Tax: ₹8.46 Cr (-3.7% YoY), Margin 6.0% * EPS: ₹1.42 (-3.7% YoY) * Net Free Cash: ₹13.04 Cr as of Sep'25 * Net Debt/Equity: (0.23) (indicating a net cash position) * Return on Capital Employed: 18.2% (annualized) * Return on Equity: 13.0% (annualized) 5. **Management Commentary / Outlook:** Management acknowledges moderate topline growth but remains confident that current groundwork, innovation, category expansion, and global partnerships will drive tangible growth and stronger performance in upcoming periods, emphasizing a long-term strategic view.