Linc Ltd Management Discussions

Global writing instruments industry overview

The global writing instrument market size was valued at USD 47.64 billion in 2025 and is expected to grow from USD 50.1 billion in 2026 to USD 77.97 billion by 2034, exhibiting at a CAGR of 5.69% during the estimated period. Asia Pacific dominated the writing instrument market with a market share of 39.77% in 2024.

The writing instrument market is being shaped by rising demand for eco-friendly products, steady expansion in the global education sector, and the rapid growth of e commerce channels. Heightened environmental awareness is encouraging manufacturers to develop sustainable alternatives made from recycled or biodegradable materials. At the same time, growing literacy rates, expanding student enrollment, and institutional procurement continue to support consistent demand for pens, pencils, and markers, particularly across emerging markets. However, the proliferation of smartphones, tablets, styluses, and smart learning technologies is gradually reducing reliance on traditional writing tools, while online platforms are unlocking new growth opportunities through wider reach, product customisation and premium gifting demand.

(Source: Fortune Business Insights)

Indian writing instruments industry overview

The Indian writing instruments market was valued at USD 858.03 million in 2025 and is expected to reach USD

1,070.50 million by 2034, growing at a CAGR of 2.4% during 2026-2034.

Pens dominate the market, accounting for approximately 65% of total demand in 2025, driven by their widespread use across educational institutions, offices and households. Indias large student population, rising school enrolment and sustained demand for affordable writing solutions support consistent consumption of pens for note-taking, examinations, assignments and everyday documentation.

Key insights

? India contributed 5.98% to the global writing instruments market in 2025, indicating its growing relevance within the international landscape. ? By 2034, the United States is expected to retain its position as the largest global market, supported by high per capita spending and a well-established distribution ecosystem.

? Within Asia Pacific, China is expected to command the largest market share by 2033, underpinned by scale manufacturing and strong domestic consumption.

? Among Asia Pacific economies, Taiwan is anticipated to register the fastest growth, with market size expected to reach USD 419.66 million by 2033, driven by innovation focused exports and niche premium demand.

(Source: IMARC Group, Deep Market Insight)

Global stationery market overview

The global stationery products market was valued at USD 165.87 billion in 2025 and is expected to increase from USD 173.93 billion in 2026 to USD 268.08 billion by 2034, reflecting a CAGR of 5.56% during the forecast period of 2025 to 2032. Asia Pacific accounted for the largest share at 43.17% in 2025, underscoring its structural dominance in both production and consumption.

Stationery products comprise a broad portfolio of items used for writing, drawing, and organising, including pens, paper, pencils, calligraphy pens, markers, and allied supplies. These products remain integral across educational institutions, universities, and corporate offices, forming a fundamental component of academic and professional ecosystems.

Demand continues to be supported by the growing popularity of DIY activities and creative hobbies such as art and craft, sketching, and personalised projects, which are expanding the consumer base beyond traditional academic use. The market has demonstrated consistent upward momentum, driven by rising global literacy rates, increasing enrollment in higher education, and the expansion of the professional workforce.

Macroeconomic factors such as globalisation and industrialisation have further reinforced demand, highlighting the essential role of stationery in both personal productivity and business operations. However, accelerated digitisation presents a structural challenge, with initiatives such as green schooling and digital learning platforms reducing reliance on conventional paper-based materials. Despite this shift, the enduring preference for pen and paper learning, supported by the cognitive and tactile benefits of handwriting, is expected to sustain baseline demand and underpin long term market stability.

Regional insights

North America: Expected to register a strong CAGR over the forecast period, growth is supported by sustained demand for stationery and art and craft supplies across schools, institutions, and hobby segments. Policy support for small scale manufacturers and creative enterprises further strengthens the ecosystem. The United States market is expected to reach USD 31.69 billion by 2026.

Europe: Steady expansion is driven by rising student enrolments and increasing investment in education infrastructure. Growing interest in art forms for decor and interior applications is supporting product demand. The United Kingdom market is expected to reach USD 4.65 billion by 2026, while Germany is expected to reach USD 7.69 billion by 2026.

Asia Pacific: Dominating the global landscape, growth is underpinned by expanding student populations and broader access to education across China, India, Bangladesh, and Vietnam. In India, higher education enrolment rose from 3.85 crores in FY2019-20 to 4.14 crores in FY2020-21, with womens enrolment increasing from 45% in 2014-15 to approximately 49% in FY2020-21. By 2026, China is expected to reach USD 25.26 billion, India USD 18.08 billion, and Japan USD 6.33 billion.

Rest of World: Advancing steadily, growth is supported by rising education expenditure and student enrolments, particularly in South America. In Brazil, education spending reached approximately USD 25 billion in 2021, with 46.7 million students enrolled in basic education. Ongoing expansion of educational institutions continues to support product demand.

(Source: Fortune Business Insights)

Growth drivers

Rising population: Indias population is estimated at 1.47 billion as of July 2026, with a significant proportion in the 5-24-year age group. This large and expanding young population forms the core consumer base for writing instruments, as students represent the largest end-user segment. The growing school- and college-going population, coupled with sustained educational participation, ensures steady and recurring demand for pens, pencils and other writing instruments, making favourable demographics a key long-term growth driver for the industry.

Education spending: The Union Budget FY2026-27 has allocated H139,289.48 crore to the Ministry of Education, representing an 8.27% increase over the budget estimate for FY2025-26. Higher public investment in education is expected to strengthen school and higher education infrastructure, improve access to learning, and support rising student enrolment, thereby driving sustained demand for writing instruments.

Urbanisation:

Approximately 37.6% of Indias population resides in urban areas, with the urban share expected to reach 40% by 2030. Rising urbanisation is driving higher disposable incomes, greater brand consciousness and increased preference for premium and aesthetically designed writing instruments, supporting growth in the organised and value-added segments of the market.

Premiumisation: Rising consumer preference for premium, luxury and branded stationery is driving value growth in the writing instruments industry. Reflecting this trend, the luxury writing instruments and stationery market is expected to reach USD 5.43 billion by 2030, expanding at a CAGR of 4.6%, as consumers increasingly seek products that combine superior quality, aesthetics and brand appeal.

Demographic dividend: Indias demographic dividend, with over 65% of its population below the age of 35, provides a strong long-term growth driver for the writing instruments industry. A large and youthful population supports sustained demand for writing products across schools, colleges, universities and early-career professionals, creating a broad and expanding consumer base.

Joint ventures and strategic collaborations: Partnerships between Indian and international companies are accelerating innovation in the writing instruments industry through the introduction of advanced technologies, new product categories and global manufacturing expertise. These collaborations are enhancing product quality, expanding consumer choice and driving the industrys long-term growth.

Rising literacy: Indias literacy rate has increased from 74.0% in 2011 to 80.9% in FY2023-24, reflecting steady progress in educational access and learning outcomes.

Higher literacy levels are expanding the number of individuals engaged in formal education and professional activities, thereby driving demand for writing instruments across schools, colleges, workplaces and households.

(Sources: PIB, Research and Market, Wolrdometer, IBEF )

Financial review, FY2025-26 and outlook

Revenues for the year increased to H532crore compared to H531 crore in the previous financial year. PAT for the year was H36.61 crore compared

to H38.66 crore in the previous financial year. The Company is expected to generate profitable and sustainable growth in the foreseeable future.

Key financial ratios for the Company

Particulars	FY26	FY25
Operating profit margin (%)	9.7	10.1
Net profit margin (%)	6.9	7.3
Debtors turnover (days)	35	35
Inventory turnover (days)	64	62
Current ratio	2.8	2.6
Debt/equity ratio	-	-
Return on net worth (%)	14.8	17.7
Interest coverage ratio	24.5	30.8

Change in operating profit / Net profit margin and return on net worth as compared to the preceding year was due to higher earnings from operations and reduction in finance cost.

Change in debtors and inventory turnover as compared to the preceding year was due to an increase in revenue. Change in interest coverage ratio as compared to the preceding year was due to higher earnings from operations and reduction in finance cost.

Internal control systems and adequacy

The Companys internal control and risk management framework is designed in line with the principles set out in its corporate governance code. Embedded within the overall organisational structure, the system operates through coordinated efforts across multiple functions, each discharging clearly defined responsibilities. The Board of Directors provides strategic oversight and direction to the Executive

Directors, management, and various monitoring and support committees. In addition, the control and risk committee, along with the head of the audit function, operates under the supervision of the Statutory Auditors appointed by the Board, ensuring robust oversight and compliance.

Human resources

At Linc, our people form the foundation of our sustained competitive advantage. We recognise and value the diverse industry experience, technical capabilities, and domain expertise that our employees bring, as these varied perspectives fuel innovation and long-term growth. Our human resources philosophy encourages progressive thinking and nurtures a performance driven, dynamic workplace. By aligning organisational objectives with individual aspirations, we strive to create an environment that supports both professional achievement and personal well-being. As of 31 March, 2026, the Company employed 1078 individuals.

Cautionary statement

This statement made in this section describes the Companys objectives, projections, expectation and estimations which may be ‘forward looking statements within the meaning of applicable securities

laws and regulations.

Forward- looking

statements are based on

certain assumptions and

expectations of future

events. The Company

cannot guarantee that

these assumptions and

expectations are accurate

or will be realised by the

Company. Actual result

could differ materially

from those expressed in the statement or implied due to the influence of external factors which are beyond the control of the Company. The Company assumes no responsibility to publicly amend, modify or revise any forward-looking statements on the basis of any subsequent developments.