DOMS Industries defies GST changes, posts strong Q2 revenue and profit growth

DOMS Industries Limited reported a 24.1% increase in consolidated operating revenues to INR567.9 crores for Q2 FY'26, driven by volume growth in domestic markets. This growth occurred despite temporary disruptions in September due to GST 2.0 reforms, which reduced rates across 45-50% of their product portfolio, including baby hygiene products. The company estimates sales could have been 3-4% higher without this transition impact.

Consolidated EBITDA for Q2 FY'26 grew by 15.8% to INR99.5 crores, maintaining an EBITDA margin of 17.5%. Profit after tax for the quarter increased by 13.4% to INR60.9 crores. The company is on track for its guided full-year capital expenditure of INR210-INR225 crores, with INR150 crores invested in the first six months, including advances for its 44-acre expansion project, expected to begin commercial production in Q1 FY'27.

The company's expansion initiatives include significant capacity additions for ballpoint pens, now at 3 million to 3.25 million pens per day, and upcoming pencil capacity from the new 44-acre plant. Despite increased employee costs due to workforce expansion and anticipated volume growth, the company expects to maintain its EBITDA margin guidance of 16.5% to 17.5%.