Archive · 11 Nov 2025
JM Financial Sees 13% Upside in DOMS Industries Post Strong Q2 Earnings
DOMS Industries, a company that makes pencils and other school supplies, had a great three months, doing better than people expected.
Their sales went up by over 24% compared to last year.
Even though they had to spend more on their employees and other things, their profit still grew by more than 13%.
Some of their older products were a bit slow, but they sold a lot more of newer items like kits and office supplies.
Their hygiene business and sales to other countries also grew a lot.
A financial company called JM Financial thinks DOMS will keep doing well and has set a new higher price target for its stock.
DOMS Industries reported consolidated revenue growth of 24.1% YoY to Rs 570 crore in Q2 FY26.
Profit After Tax (PAT) increased by 13.5% YoY to Rs 58.3 crore, exceeding estimates.
EBITDA grew 15.8% YoY to Rs 99.5 crore, indicating operating strength.
Strong growth was observed in kits & combos (+41% YoY) and office supplies (+84% YoY), with exports rising 18% YoY.
JM Financial maintained an ‘Add’ rating on the stock with a revised target price of Rs 2,875, suggesting a 13.4% upside potential.
- Who
- DOMS Industries and brokerage firm JM Financial
- What
- DOMS Industries reported strong Q2 FY26 earnings with revenue up 24.1% and PAT up 13.5% YoY. JM Financial reiterated an ‘Add’ rating with a target price of Rs 2,875.
- When
- Q2 FY26 (July-September 2025)
- Where
- India
- Why
- Strong revenue growth driven by strong performance in kits & combos, office supplies, exports, and the Uniclan business, despite some muted traditional categories and increased operational costs.
Challenges and Cost Increases
Growth Drivers and Strengths
Margin Performance
Challenges and Cost Increases
While gross margins expanded, consolidated EBITDA margins contracted by 125 bps YoY to 17.5% due to elevated staff costs (+32.6% YoY) and other expenses (+32% YoY).
Growth Drivers and Strengths
Gross margins improved by 39 bps YoY to 43.8%. The core stationery segment maintained a strong EBITDA margin of 19.6%.
Category Performance
Challenges and Cost Increases
Traditional categories like scholastic stationery and art materials were somewhat muted, partly due to capacity constraints.
Growth Drivers and Strengths
Kits & Combos sales surged by 41% YoY, Office Supplies by 84% YoY, and Hobby & Craft grew 3.8x YoY. The newly acquired hygiene business, Uniclan, saw a 3.3x YoY surge in sales, and exports rose 18% YoY.
- Company
- DOMS Industries
- Reporting Period
- Q2 FY26 (July-September 2025)
- Consolidated Revenue (YoY)
- +24.1%
- Profit After Tax (YoY)
- +13.5%
- EBITDA (YoY)
- +15.8%
- Gross Margin Expansion
- +39 bps
- Consolidated EBITDA Margin
- 17.5%
- Core Stationery EBITDA Margin
- 19.6%
