DOMS

Builds Scale Through Capacity Expansion

continues to consolidate its leadership in India’s organised stationery market, supported by diversified product offerings, integrated manufacturing, and steady innovation. While recent growth has been strong, the next phase hinges on scaling manufacturing capacity and expanding into adjacent categories. The upcoming Umbergaon facility and new product initiatives are expected to provide the platform for sustained growth. Financial Performance (Q3FY26) - Consolidated revenue: ₹592 crore (+18% YoY). - EBITDA: ₹103 crore (+17.7% YoY); margin steady at 17.5%. - PAT: ₹61 crore (+13% YoY); margin at 10.4%. - Net profit growth slower due to reduced other income, as IPO proceeds are now deployed for capex. Category Growth & Innovation - Strong traction across writing instruments, office supplies, kits/combos, and art materials. - Pen segment performed well, with high-volume price points (₹5–₹10 pens) dominating. - Innovation pipeline: acrylic markers, mechanical pencils, new sketch pen variants. - Expansion into school bags, toys, and baby hygiene broadens portfolio. - Baby hygiene segment contributed incremental revenue, expected to scale with distribution expansion. Capacity Expansion - Capacity up 33% YoY to 6,464 beds (Q3FY26). - Greenfield Umbergaon facility (44 acres) under development; first building expected operational by Q2FY27. - Phased multi-building campus to align capacity with demand growth. - Brownfield expansions ongoing to meet near-term demand. - FY26 capex guidance: ₹225–250 crore, largely for Umbergaon and existing plant expansions. Strategic Partnerships - 50:50 JV with Seven SpA (FILA Group) to manufacture premium backpacks, bags, and pencil cases for global markets. - JV expected to be formalised by Q1FY27, combining FILA’s design/distribution with DOMS’s manufacturing expertise. Valuation & Outlook - Stock trades at ~37x FY28E EPS, near 52-week low. - Management guides 18–20% revenue growth in near term.