DOMS - Doms Industries

📊 NSE: DOMS 🏢 Printing & Stationery 📅 Last Updated: 12/13/2025 21:39

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue grew 24.4% YoY to INR 1,912.63 Cr in FY25. In Q2 FY26, revenue grew 24% YoY, driven primarily by volume growth in office supplies, paper stationery, adhesives, and kits/combination packs.

Geographic Revenue Split

Not disclosed in available documents, though the company emphasizes a strong market position in the domestic Indian market and notes that macroeconomic instability impacts export revenue.

Profitability Margins

FY25 Gross margins are supported by a cost-sheet driven philosophy targeting 15-16% base margins. PAT margin for Q2 FY26 stood at 10.7%, while FY25 PAT margin was 11.16% (INR 213.54 Cr PAT on INR 1,912.63 Cr revenue).

EBITDA Margin

EBITDA margin for Q2 FY26 was 17.5%, maintaining the upper end of the guided 16.5% to 17.5% range. FY25 EBITDA was INR 348.45 Cr, representing an 18.2% margin, up from 17.7% in FY24.

Capital Expenditure

The company is executing a 44-acre flagship expansion project. H1 FY26 capex was INR 150 Cr, with a full-year FY26 guidance of INR 210 Cr to INR 225 Cr. Total planned capex from FY23 to FY27 is INR 454 Cr.

Credit Rating & Borrowing

CRISIL maintains a 'Strong' liquidity rating. Total debt was reduced to INR 49 Cr as of December 31, 2023, from INR 100 Cr in March 2023. Debt/EBITDA declined to 0.42x in FY24.

⚙️ Operational Drivers

Raw Materials

Key raw materials include polymer and graphite, which represent a major portion of the production cost. Adhesives and paper are also significant inputs.

Capacity Expansion

Currently expanding via a 44-acre (also referred to as 45-acre) project to increase capacity for existing product categories. The group operates the largest single-location manufacturing facility in the Indian stationery industry.

Raw Material Costs

Raw material costs are a major production expense; the company manages this through cost-sheet pricing and operational efficiencies, maintaining margins despite price fluctuations in polymer and graphite.

Manufacturing Efficiency

Operational efficiencies have allowed the company to report margins of 16.5% to 17.5%, exceeding the base cost-sheet target of 15-16%.

Logistics & Distribution

The company leverages a strong distribution network to deliver high-quality products; however, rising logistics costs are identified as an economic risk to export growth.

📈 Strategic Growth

Expected Growth Rate

24%

Growth Strategy

Growth is driven by a 44-acre capacity expansion, product diversification (including the acquisition of Uniclan Healthcare for diapers/hygiene), and leveraging GST reforms which shift demand from unorganized to branded players. The company uses a cost-sheet driven model to ensure every new product meets a 15-16% margin floor.

Products & Services

Pencils, pens, adhesives, office supplies, paper stationery, mathematical instrument boxes, art products, kits, combination packs, and hygiene products (diapers).

Brand Portfolio

DOMS, Pioneer (Stationery), Micro Wood, Skido, Uniclan (Healthcare).

New Products/Services

Expansion into the hygiene segment via Uniclan and continuous regular introduction of new stationery products to diversify revenue streams.

Market Expansion

Focus on increasing market penetration in India by capitalizing on the GST rate reduction on core products, which creates a level playing field against unorganized competitors.

Market Share & Ranking

DOMS is one of India's leading stationery and art products companies with a strong market position in the domestic industry.

Strategic Alliances

Partnership with the Sehgal family for expertise in specific product deliveries and the acquisition of a 51% stake in Uniclan Healthcare.

🌍 External Factors

Industry Trends

The Indian stationery industry is highly fragmented but shifting toward organized brands due to GST reforms. Demand is growing for branded, high-quality art and stationery products.

Competitive Landscape

Faces intense competition from established brands and a large number of unorganized players, particularly in the lower-end segments like pens and pencils.

Competitive Moat

Moat is built on brand equity, a massive single-location manufacturing scale (44-acre expansion), and a robust distribution network. These are sustainable due to high capital requirements for similar scale.

Macro Economic Sensitivity

Sensitive to disposable income levels; management believes 2025 budget income tax reductions will uplift consumer sentiment and boost demand for stationery.

Consumer Behavior

Shift toward branded products and 'kits/combination packs' which drove volume growth in Q2 FY26.

Geopolitical Risks

Macroeconomic instability and logistics delays are noted as risks to the export business.

⚖️ Regulatory & Governance

Industry Regulations

GST 2.0 caused short-term order postponement by trade partners in Q2 FY26, but the reduction in GST rates on core products is expected to benefit the company long-term by creating a level playing field.