Experienced management and a long track record of operation
The promoters, Mr. Jagadish Agarwal and Mr. Vishesh Agarwal, have more than two decades of experience in the pen manufacturing industry. The long track record of operations has helped the company build long-term relationships with customers as well as with suppliers, resulting in growth in operations.

Moderation in operating performance
OPL’s operating revenue declined to Rs.152.74 crore in FY2025 from Rs.168.46 crore in FY2024, primarily due to weak market conditions, which also led to a moderate drop in capacity utilization. Despite the revenue moderation, profitability improved with EBITDA margin increasing to 8.69 per cent in FY2025 from 8.31 per cent in FY2024, driven by backward integration through in-house product assembly, reducing costs and import duties. PAT margin, however, moderated to 3.74 per cent from 3.94 per cent in FY2024 owing to higher interest costs. For H1FY2026, the company reported revenue of Rs.65 crore and expects to close the year at levels similar to FY2025. Acuite believes, the operating performance of the company would remain moderate over the medium term due to challenging industry conditions.

Moderate financial risk profile
The company’s financial risk profile remains moderate, supported by an improvement in net worth, comfortable gearing, and adequate debt protection metrics. Net worth increased to Rs.36.47 crore as on March 31, 2025 as compared to Rs.30.77 crore as on March 31, 2024, primarily driven by profit accretion to reserves. Gearing (debt to equity ratio) remained comfortable at 1.29 times in FY2025 compared to 1.37 times in FY2024. Debt protection indicators, however, witnessed moderation, with interest coverage ratio (ICR) stood at 4.07 times in FY2025 as compared to 5.30 times in FY2024, and debt service coverage ratio (DSCR) to 1.89 times as compared to 2.74 times in FY2024. This moderation was largely on account of higher debt levels on the back of capacity expansion from 20 lakh units per day to 25 lakh units per day, resulting in increased interest costs. The TOL/TNW ratio improved to 1.88 times in FY2025 from 2.11 times in FY2024, while Debt-to EBITDA stood at 3.47 times in FY2025 against 2.82 times in FY2024. Acuite believes, the financial risk profile of the company would remain moderate on account of modest net worth base.

Moderately intensive working capital operations
The company’s operations remained moderately intensive, with gross current asset (GCA) at 150 days in FY2025 compared to 134 days in FY2024. OPL maintains an order backlog of 4–5 months, with each order typically taking around three months to fulfill and export. Payments are generally received within 30–45 days post-billing, with most orders being prepaid. Debtor days stood at 36 days in FY2025 against 33 days in FY2024, while inventory days increased to 102 days from 85 days during the same period. Creditor days remained stable at 42 days in FY2025 compared to 44 days in FY2024. Working capital requirements are funded through bank lines, with average utilization at a moderate level of 83.84 per cent for the seven months ended October 2025. Acuite believes that the operations of the company would remain moderately working capital intensive on the back of higher inventory levels.

Exposure to volatility in raw material prices and intense competition
The company operates in a highly fragmented Indian stationery industry, which is characterized by intense competition, limited pricing power, and the presence of numerous unorganised players in the given segment in both domestic and international markets. As a result of stiff competition from other players in the market, the pricing power of entities remains limited. Raw material costs form a significant part of production, making margins vulnerable to price volatility in key inputs like tips, polymers, and ink.