DOMS Industries (DOMS IN) – Q4FY26 Result Update – Near term margin headwinds on the cards – BUY
Published on 19 May 2026
DOMS IN reported an in-line performance with revenues of Rs6,040mn (PLe Rs5,951mn) and EBITDA margin of 16.7% (PLe 16.3%) aided by healthy performance in the stationary division. Led by new launches in categories like pencils, pens, erasers, and bags, the stationary division reported a 19.0% YoY growth in top line with EBITDA margin of 18.5%. Aided by capacity expansion in core stationery business (production at Umbergaon is expected to commence from 2QFY27E) and widening product basket (SKU count is up by ~400 in last 1 year) we expect sales/PAT CAGR of 20%/23% over FY26-FY28E. However, given increasing volatility in RM prices, we expect EBITDA margins to dip 50bps YoY to 16.8% in FY27E. Nonetheless, calibrated price revision and stabilization in RM prices should result in a recovery in EBITDA margin to 17.7% in FY28E. DOMS IN trades at 53x/39x our FY27E/FY28E EPS. We broadly retain our estimates and maintain BUY with a TP of Rs2,883 (50x FY28E EPS; no change in target multiple).
