DOMS Industries (DOMS IN) – Q3FY26 Result Update – Growth button gets reset – BUY
Published on 03 Feb 2026
We cut our EPS estimates by 6%/3% for FY27E/FY28E amid delays in commercialization of the new plant at Umbergaon. DOMS IN reported an in-line performance with revenues of Rs5,922mn (PLe Rs5,918mn) and EBITDA margin of 17.5% (PLe 17.4%) aided by strong performance in the hygiene business. While stationary business also reported a decent performance, additional growth fillip is expected to materialize after the new plant at Umbergaon commences operations from 2QFY27E. Aided by capacity expansion in core stationery business, widening product basket (SKU count is up by ~250 in last 1 year), and strengthening distribution network we expect sales/PAT CAGR of 22%/23% over FY25-FY28E. We maintain BUY on the stock with a TP of Rs3,084 (50x FY28E EPS). We cut our target multiple to 50x (earlier 60x) as growth moderation is evident amid delays in expansion plan.
