Doms Industries reports a 19.2% rise in first-quarter revenue driven by domestic demand and buoyant back-to-school sales, while profits dip due to rising costs. The company completes the Reynolds brand acquisition to expand its stationery portfolio, with growth targets unchanged amid upcoming capacity expansions.
DOMS Industries said first-quarter revenue rose sharply, helped by steady domestic demand and the annual back-to-school buying cycle, but profit came under pressure as costs climbed. The company reported consolidated revenue of ₹670.5 crore for the quarter, up 19.2% from a year earlier, while net profit fell 23.4% to ₹45.3 crore.
The softer bottom line reflected a 525 basis-point drop in EBITDA margin to 12.31%. DOMS said higher raw material costs, employee stock-option expenses and one-off operating costs weighed on profitability, even as sales momentum remained healthy.
The company also completed its purchase of Reynolds brand assets for ₹3,500 lakh, a move aimed at widening its reach in the office and writing instruments market. Market reports earlier said the deal, valued at about $3.7 million or roughly ₹31 crore, covers intellectual property, contracts, supply arrangements and other related assets tied to the Reynolds business. Shares rose after the announcement, with investors viewing the transaction as a way for DOMS to deepen its stationery portfolio.
Looking ahead, management kept its full-year revenue growth target at 18% to 20%, pointing to additional capacity from a greenfield project of more than 50 acres. The company expects commercial operations at the site to begin by the end of Q2 FY27, which it said should support growth in the months ahead.
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