DOMS Industries Limited reported a 17.6% year-on-year revenue growth to ₹667.8 crore for the second quarter of FY27. The company navigated raw material price volatility and a challenging external environment, including floods in Gujarat. Growth was driven by strong volume expansion across domestic and export markets, capacity additions, and new product launches. Despite margin pressures due to raw material inflation and manpower costs, DOMS remains focused on volume-based market share growth and disciplined cost management.
Q2 FY27 Financial Performance
DOMS Industries Limited announced its financial results for the second quarter and first half of FY27. The company reported an operating revenue of ₹667.8 crore for Q2 FY27, marking a 17.6% increase compared to the previous year. For the first half of FY27, revenue grew by 18.4%. This growth was achieved despite facing an exceptional challenge from heavy rainfall and flooding in Gujarat, which impacted inventory and logistics, estimated to have affected sales growth by 300 to 350 basis points.
EBITDA and Profitability
EBITDA for Q2 FY27 stood at ₹82.8 crore, with margins at 12.4%. For H1 FY27, EBITDA was ₹165.3 crore, also at 12.4% margin. The company managed to maintain EBITDA margins sequentially despite continued raw material price volatility. However, profitability was impacted by higher manpower costs following the integration of Reynolds sales and support teams. Profit After Tax (PAT) for Q2 FY27 was ₹38.3 crore (5.7% margin), and for H1 FY27, it was ₹83.6 crore (6.2% margin). The Q2 PAT includes an exceptional loss of ₹10.4 crore due to rainfall and flooding damage.
Growth Drivers and Strategic Focus
Growth was broad-based across key categories, including Scholastic Stationery, art material, and office supplies. Capacity additions and positive market response to new products were key drivers. The company’s focus remains on strengthening market position, driving sustainable long-term growth, and maintaining disciplined cost management. Despite challenging market conditions, working capital cycles were kept within the guided range of 55 to 60 days.
Capacity Expansion and Investments
DOMS has commissioned the first building at its new 50-acre manufacturing facility, dedicated to office supplies and pen manufacturing under the Reynolds brand, expected to contribute from Q3 FY27. The company invested over INR200 crore in capital expenditure in H1 FY27 and plans to invest a further INR100 crore to INR125 crore in the remainder of the year. The overall sales growth guidance for the year remains at 18% to 20%.
Reynolds Acquisition and Integration
The integration of the Reynolds brand is progressing, with manufacturing of key products like Brite and 045 pens already started. The entire sales and support team of Reynolds was integrated with DOMS from July 1, 2027. The company anticipates revenue from manufactured Reynolds products starting in Q3 FY27 and gaining momentum in Q4 FY27. The acquisition was strategic to establish a strong second brand in the mid-to-early premium writing instrument segment.
Outlook and Market Dynamics
DOMS is cautiously optimistic about the ongoing demand environment. The company continues to monitor raw material price movements and maintains a balanced approach to growth, focusing on market share through higher volumes. While facing short-term margin pressures, DOMS aims to return to its targeted EBITDA margin range of 16% to 17% over the next few quarters by implementing strategic pricing and operational measures.
Source: BSE
