Doms draws a neat line as Q3 growth sharpens margins and momentum

MUMBAI: Pencils were sharp and notebooks full as Doms Industries Limited sketched out another solid quarter. The stationery and creative products maker reported a robust performance in the third quarter of FY26, powered by steady demand across scholastic, office and hobby categories, even as margins stayed largely in line with recent quarters.

Revenue from operations in Q3FY26 climbed 18.2 per cent year-on-year to Rs 592.2 crore, and rose 4.3 per cent sequentially from Q2FY26, underlining a sustained growth run. EBITDA for the quarter increased 17.7 per cent year-on-year to Rs 103.4 crore, with margins holding steady at 17.5 per cent, unchanged from both the year-ago and previous quarters.

Net profit told a similar story. Profit after tax rose 13.1 per cent year-on-year to Rs 61.4 crore, though margins eased slightly to 10.4 per cent, compared with 10.8 per cent in Q3FY25 and 10.7 per cent in Q2FY26.

For the nine months ended FY26, DOMS’ topline expanded at a faster clip. Revenue from operations grew 22.7 per cent year-on-year to Rs 1,722.4 crore. EBITDA for the period rose 15.9 per cent to Rs 301.7 crore, with margins at 17.5 per cent versus 18.5 per cent last year. PAT for the nine-month period increased 11.8 per cent to Rs 181.4 crore, while margins softened to 10.5 per cent from 11.6 per cent in the corresponding period.

The growth was led by consistent performance in core categories such as Scholastic Art Materials, Office Supplies, Kits and Combos, and the Hobby and Craft segment. The baby hygiene business also clocked healthy growth, aided by winter demand for diapers and higher capacity compared with last year.

Geographically, domestic demand remained strong across product lines. Exports showed modest growth despite challenges in the US market following higher tariffs, supported by rising demand for Doms-branded products and the positive impact of the FILA distribution agreement.

Margins over the nine-month period were marginally lower, reflecting the full consolidation of Uniclan Healthcare and reduced other income as cash was deployed towards capital expenditure. Even so, profitability stayed within the company’s guided range, with core businesses delivering stable margins and healthy volumes.

Looking ahead, Doms is gearing up for its next phase of expansion. The company’s 44-acre project, delayed slightly by unseasonal rains last year, is now expected to see completion of initial buildings in Q1FY27, with commercial production likely to begin in Q2FY27. Additional investments in capacity expansion and process modernisation are also on the cards.

In short, Doms continues to colour within the lines growing steadily, managing costs with discipline, and preparing the canvas for its next growth chapter.