DOMS Industries reported a 19.2% increase in operating revenues to INR670 crore for the first quarter of FY27. The company provided updates on its significant capacity expansion at the 50-plus acre greenfield project and the ongoing integration of the recently acquired Reynolds brand, anticipating its contribution to overall revenues by FY29.
DOMS Industries Reports Strong Q1 FY27 Performance
DOMS Industries Limited announced its financial results for the first quarter ended June 30, 2026, showcasing a robust growth trajectory. The company’s operating revenues surged by 19.2% year-on-year to reach INR670 crore, aligning with its annual guidance. This growth was primarily driven by strong domestic demand, a successful back-to-school season, and new product launches.
Financial Highlights and Margin Commentary
Despite the revenue growth, EBITDA for Q1 FY27 saw a decrease of 16.4% to INR82.6 crore, with the EBITDA margin contracting to 12.3% from 17.6% in Q1 FY26. This was attributed to a sharp increase in raw material prices, particularly linked to the West Asia crisis, and higher employee benefit expenses. Profit After Tax (PAT) stood at INR45.3 crore, a decrease from INR59.1 crore in the prior year, impacted by increased depreciation from capacity expansion.
Management noted that the margin moderation is viewed as a temporary blip, with a continued focus on volume-led growth and market share expansion over short-term margin considerations. The company has implemented price increases averaging 4% to 5% to partially offset raw material cost volatility.
Capacity Expansion and Reynolds Integration Progress
Significant progress is being made on the 50-plus acre greenfield project, with an expected commissioning of approximately 300,000 square feet of operational area by the end of Q2 FY27. The company has already invested close to INR100 crore in capital investments during Q1 FY27. The integration of the Reynolds brand and assets is progressing as planned, with the full sales potential expected to be unlocked as manufacturing commences under the Reynolds brand in alignment with the greenfield project’s first phase targeted for end of Q2 FY27. Reynolds is projected to contribute approximately 10% of the company’s overall revenues by FY29.
Outlook and Strategic Focus
Looking ahead, DOMS Industries reaffirms its guidance for 18% to 20% consolidated sales growth for the full year, supported by positive domestic demand. Visibility on margin guidance remains limited due to raw material price fluctuations. The company’s strategic focus remains on volume-led growth, market share expansion, and consumer-centric innovation.
Source: BSE
