Doms Industries is Expanding Through Acquisitions: Which New Businesses Are Actually Delivering Growth?
Stationery is one of those habit purchases every Indian family makes, year after year, usually right before school reopens. It's cheap, repeated and very predictable. That's exactly why smart makers try to sell more things to the same household, since kids grow up and needs keep changing. It sounds simple on paper, but building new businesses takes time and a fair bit of money too, especially when costs are jumping around.
DOMS Industries shares closed at ₹2,107.50, up 0.36% from the previous close. The company has a market cap of ₹12,790.07 crore, and the stock has traded between ₹2,006.85 and ₹2,704.00 over the last 52 weeks. Its consolidated P/E is 56.66.
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Sales Are Racing, Profits Aren't
DOMS Industries reported consolidated revenue of ₹670.5 crore for the April to June 2026 quarter, up 19.2% from last year. Profit didn't follow though. EBITDA, which is operating profit before interest, tax and depreciation, fell 16.4% to ₹82.6 crore, and margin slid to 12.3% from 17.6%. PAT came in at ₹45.3 crore, down 23.4%.
Gross margin dropped to 38.2% from 42.1%, mainly because raw material prices jumped on the West Asia tension while the company raised its own prices only a little. Employee costs rose to ₹94.3 crore from ₹76.4 crore, and depreciation went up to ₹23.4 crore from ₹20.4 crore as new capacity came in.
Baby Care And Office Supplies Show The Shift
Look at the category split and the shift shows up. Baby hygiene made up 7% of gross product sales in the quarter, same as last year, which works out to roughly ₹48 crore on ₹693.2 crore of gross sales. That looks flat, but the first quarter is the slow season for diapers, and for FY26 as a whole the share rose to 9% from 6%. The Wowper diaper brand alone went to 6.7% of sales from 5.3%.
Office supplies moved up to 16% from 14%, roughly ₹111 crore, and kits and combos held at 10%. Scholastic stationery, the old core, is still the biggest at 31%, but it was 34% a year ago.
Small Deals, Big Factory Bills
The deals behind these lines were small. The Skido bags stake began with an initial ₹0.51 crore, and the notebook maker Super Treads was approved for a maximum of ₹6.12 crore. Compare that with ₹292.8 crore of capex in FY26 and you see where the real money goes.
Factories still being built, called capital work in progress, jumped to ₹162.1 crore from ₹60.3 crore. Around 300,000 square feet at the new 50-plus acre plant is targeted for end of Q2 FY27, which is September. Debt is barely a worry, with net debt to equity at just 0.02 times.
Reynolds And The Toy Bet
Reynolds did about ₹130 crore to ₹140 crore of sales last year, and the company wants it near 10% of total revenue by FY29. It comes without a factory though, so Reynolds pens will share capacity with existing products, and that won't add much revenue this year.
Toys are the odd one out. The company owns 30% of Clapjoy, so it counts as an associate, meaning only a slice of its profit gets counted. There's no toy category in the sales split and no Clapjoy revenue is disclosed anywhere, so for now toys are more of a hint than a number.
Bottom Line
The company still guides for 18% to 20% revenue growth in FY27, and wants margins back at about 16% to 17%. It calls the current dip temporary, and says another price hike of 4% to 5% may be needed if raw material stays at current levels. Honestly, the new businesses are still small next to core stationery, so this is a reach story more than an earnings story right now. Q2 numbers will show whether the bottom is in, and whether baby care can grow beyond its seasonal dips.
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About the Company
DOMS Industries makes school and office stationery, art material, paper products, bags and baby hygiene products across nine categories. It runs 18 facilities across five locations, sells 4,800-plus products and ships to 55-plus countries, with over 145,000 retail outlets at home. Exports were 12% of sales in the quarter. It's part of the RR-FILA group, and its brands include DOMS, Amariz, FixyFix, Wowper, C3 and Reynolds.