Linc Limited Q3 FY25 earnings: Profit growth strengthens despite revenue decline

Linc Limited, formerly known as Linc Pen & Plastics Limited, has reported strong profit growth in its Q3 FY25 results, even as revenue saw a minor decline. The company’s profit after tax (PAT) increased by 15.3% year-on-year (YoY) to ₹872 lakh, underscoring strong operational efficiencies and cost management strategies.

Despite facing a 0.9% decline in total income, which stood at ₹12,355 lakh for the quarter, Linc Limited earnings reflected the company’s ability to maintain strong profit margins. A 2.9% increase in gross profit and a higher EBITDA margin of 12.9% helped offset revenue softness. Growth in export sales and digital commerce played a key role in stabilizing profitability amid shifts in consumer demand and market conditions.

What Drove Linc Limited’s Profit Growth in Q3 FY25?

The stationery market growth remains competitive, with shifts in consumer purchasing behaviour impacting revenue streams. While traditional domestic sales experienced a slowdown, Linc Limited successfully diversified its revenue mix. Exports contributed 22% of the company’s total revenue, a significant driver of profitability.

According to Deepak Jalan, Managing Director of Linc Limited, the company leveraged multiple sales channels to maintain earnings strength despite revenue fluctuations.

“While the domestic market faced some headwinds, we saw strong performance in exports, modern trade, and e-commerce. These areas helped mitigate the revenue softness from traditional trade,” said Jalan.

The company’s writing instruments segment faced a 3.4% YoY revenue decline, primarily due to the natural phase-out of legacy products. However, Linc Limited is actively expanding its product portfolio with premium and innovative offerings, aiming to capture higher-margin sales and strengthen its competitive position.

How Did Linc Limited Maintain Strong Profit Margins?

Linc Limited’s profitability remained robust despite challenges in domestic sales channels. The company achieved a gross profit of ₹4,017 lakh, up 2.9% YoY, with a gross profit margin of 32.9%, up from 31.5% last year.

A strategic focus on premiumization and cost efficiencies enabled the company to sustain earnings growth. Linc Limited’s EBITDA reached ₹1,599 lakh, marking a 9.2% YoY increase, while the EBITDA margin expanded to 12.9%. The company’s PAT margin also improved to 7.1%, reflecting its ability to control costs and optimize operational efficiencies.

What Is Linc Limited’s Strategy for Market Expansion?

The Indian stationery market is valued at ₹38,500 crore, with the writing instruments segment contributing approximately ₹9,000 crore. Linc Limited earnings indicate a clear strategy for growth, with the company broadening its product range to increase its total addressable market (TAM) from ₹14,000–₹15,000 crore.

The company’s long-term vision includes expanding beyond writing instruments, diversifying into adjacent stationery categories while maintaining its strong brand equity and distribution network.

“We see significant opportunities in the premium writing instruments segment and adjacent stationery categories,” Jalan added. “By leveraging our innovation capabilities, we aim to strengthen our position in the growing market.”

To accelerate growth, Linc Limited is enhancing its digital presence, expanding its reach in e-commerce and modern retail channels. As consumer preferences shift toward online shopping and premium products, the company is aligning its brand strategy to meet emerging demand trends.

What Are the Key Financial Highlights of Q3 FY25?

Linc Limited’s Q3 FY25 earnings report highlights its strong financial position, demonstrating its ability to sustain profitability despite market challenges. The company also reported an improvement in its net debt position, with net debt standing at ₹(2,149) lakh, significantly lower than ₹(765) lakh in the previous fiscal year.

The company’s earnings per share (EPS) stood at ₹1.47, up from ₹1.27 in Q3 FY24, reflecting enhanced shareholder value.

What Lies Ahead for Linc Limited?

Looking forward, Linc Limited remains optimistic about its growth trajectory. The company is investing in innovation, expanding into premium categories, and strengthening its market positioning to capitalize on stationery market growth opportunities.

The writing instruments segment remains a key focus, with product differentiation and brand-led expansion driving future gains. Linc Limited’s strategic emphasis on exports, e-commerce, and modern trade will continue to shape its revenue diversification strategy.

With a clear execution plan and a strong foundation, Linc Limited earnings are poised for continued profitability and long-term value creation.