Doms Industries

Doms Industries reported consolidated operating revenues of ₹562.3 crores in Q1 FY26, marking a robust 26.4% year-on-year growth. This increase was predominantly driven by volume expansion, with a marginal contribution from higher average selling prices due to product mix changes. Sequentially, revenues grew by 10.5% from ₹508.7 crores in Q4 FY25. The company achieved an EBITDA of ₹98.7 crores, a 14.3% increase from Q1 FY25, maintaining a healthy EBITDA margin of 17.6%, which is within the guided range of 16.5%-17.5%.

The company is actively investing in capacity expansion, with a CAPEX of ₹70 crores in Q1 FY26 and a full-year projection of ₹210-225 crores. These investments are allocated to acquiring additional land, constructing the 44-acre project, and purchasing plant and machinery. The 44-acre project is on track, with the first buildings expected to be delivered by Q3 FY26, enabling commercial production approximately 90 days thereafter. This expansion is crucial for capitalizing on latent demand and sustaining future growth.

Doms continued to expand its product portfolio across all segments, including Scholastic Stationery, Art Materials, Kits & Combo Packs, Paper Stationery, and Office Supplies. The Office Supplies segment demonstrated exceptional performance, growing 77% year-on-year, primarily driven by pens and highlighters. While Scholastic Stationery and Art Materials showed modest individual growth, the combined Scholastic categories, including Kits & Combo Packs, grew by 6.4% year-on-year.

The Uniclan business contributed ₹36.1 crores in Q1 FY26, showing approximately 40% growth compared to Q1 FY25 (when it was not consolidated). Management aims for an 8-9% EBITDA margin for Uniclan for the full year, focusing on sales and distribution ramp-up. The successful acquisition of Super Treads Private Limited (STPL) further strengthens delivery capabilities in the Eastern region and enhances paper stationery production capacity. Exports of DOMS-branded products are also gaining traction, supported by the partnership with F.I.L.A. for international distribution.

Management remains optimistic about domestic demand and international market opportunities for DOMS products. The primary risk identified is the company's ability to timely increase capacity to meet this strong demand. Doms is confident in achieving its FY26 sales growth guidance of 18%-20% and maintaining EBITDA margins between 16.5%-17.5% and PAT margins between 10%-10.5%. The company expects the new 44-acre plant to significantly increase its workforce, potentially doubling it to 12,000-13,000 people gradually.