DOMS Industries delivered strong double-digit growth in the latest quarter, supported by robust demand across stationery, office supplies and baby hygiene products, even as rising raw material costs and higher spending weighed on profitability.
Revenue rose 18.7% year-on-year, driven largely by higher volumes across scholastic stationery, art materials, office supplies, paper stationery, and hobby and craft products. The company said increased manufacturing capacity and new product launches helped sustain momentum, while continued investments in ballpoint pens and highlighters boosted growth in office supplies.
Its backpack brand, SKIDO, recorded around 60% revenue growth following new product launches. Meanwhile, hygiene subsidiary Uniclan Healthcare reported quarterly revenue of Rs55.9 crore, although margins softened due to seasonal factors and higher online sales-related expenses.
DOMS said profitability was affected by inflation in raw material prices, which rose about 17% amid geopolitical tensions. Around 40% of the company’s input costs are directly linked to crude oil prices, with another 30% indirectly exposed. In response, the company implemented calibrated price increases of 4-5% while attempting to protect market share and maintain retail shelf space.
The company remains in an aggressive investment phase. Capital expenditure for FY26 stood at Rs293 crore, mainly towards land development, facility expansion and machinery procurement. A new manufacturing building is expected to begin production of writing instruments in the second quarter of FY27.
Management plans further capex of Rs250-275 crore in FY27 and expects to invest roughly Rs500 crore over the next two years to expand facilities and moulding capacity.
Despite near-term pressure on margins, DOMS said it expects to maintain its current growth trajectory, guiding for 17-20% revenue growth in the coming financial year. The company also expects stronger growth from the baby hygiene business and aims for long-term margin improvement as new capacities scale up.
