DOMS Industries Limited , a leading player in the Indian stationery and art materials sector, has reported a robust 24.1% year-on-year growth in consolidated revenue for the second quarter of fiscal year 2026, reaching INR 567.90 crores. This growth comes despite temporary disruptions caused by the implementation of GST 2.0 reforms in September.

Key Financial Highlights

• Revenue Growth: Consolidated revenue increased by 24.1% year-on-year to INR 567.90 crores in Q2 FY26.
• EBITDA Performance: The company maintained its EBITDA margin at 17.5%, demonstrating operational efficiency.
• Market Performance: Strong performance in the domestic market and volume growth across office supplies were key drivers of revenue growth.

Segment-wise Performance

The company witnessed varied performance across its product segments:

GST 2.0 Impact and Company Response

The implementation of GST 2.0 reforms in September led to temporary disruptions, including inventory clearance and order postponements by trade partners. However, DOMS Industries demonstrated resilience by achieving positive sales growth despite these challenges. The company has adjusted its pricing strategy in response to the GST changes:

• Reduced MRPs on products now under 0% GST rate
• Maintained pricing for kits and combination packs, which continue to attract 18% GST

Expansion and Future Outlook

DOMS Industries is progressing with its 44-acre expansion project, albeit with slight construction delays due to prolonged monsoon conditions. The company expects:

• First building possession in Q4 FY26
• Commercial production to commence from Q1 FY27

This expansion is part of DOMS' strategy to support growth objectives in its core stationery and art material segments.

Management Commentary

Rahul Shah, Chief Financial Officer of DOMS Industries, stated, "Despite the impact of GST 2.0 transition, we continued our growth momentum in Q2 FY '26 with an increase in sales of over 24%, marking yet another milestone in our journey, showcasing the resilience of our business model and reflecting the strength in demand of our products."

Shah added that the company believes the GST reforms, coupled with recent income tax reductions, will have a long-term positive impact by increasing disposable income and uplifting consumer sentiment.

Conclusion

DOMS Industries has demonstrated strong performance and adaptability in the face of regulatory changes. With its ongoing expansion plans and strategic market positioning, the company appears well-positioned to capitalize on future growth opportunities in the Indian stationery and art materials market.

Investors and market watchers will likely keep a close eye on how DOMS navigates the evolving regulatory landscape and leverages its expansion plans to drive future growth.

DOMS Industries Limited , a prominent player in the stationery sector, has released its monitoring agency report for the quarter ended September 30, 2025, detailing the utilization of proceeds from its Initial Public Offering (IPO) conducted in December 2023.

IPO Proceeds Utilization

The company raised net proceeds of Rs 3,327.24 crore from its IPO. As of September 30, 2025, DOMS Industries has efficiently deployed a significant portion of these funds:

During the quarter, the company utilized Rs 500.34 crore for the proposed project and Rs 11.50 crore for general corporate purposes, specifically for working capital requirements including raw material purchases.

Investment of Unutilized Funds

The remaining unutilized proceeds of Rs 885.05 crore (including interest earned) have been prudently deployed in fixed deposits with various banks, earning returns ranging from 4.75% to 7.75%. This strategy ensures that the funds continue to generate returns while awaiting deployment for their intended purposes.

Project Implementation

CRISIL Ratings, the appointed monitoring agency, has reported no deviations from the disclosed objects of the IPO. All utilizations align with the requirements outlined in the offer document, indicating that the company is adhering to its commitments to shareholders.

Investor Relations

In a separate announcement, DOMS Industries held an Investor/Analyst Conference Call on November 11, 2025, to discuss the unaudited financial results for Q2 FY2026. The audio recording of this call has been made available on the company's website, demonstrating DOMS' commitment to transparency and open communication with its investors and analysts.

As DOMS Industries continues to implement its expansion plans and utilize the IPO proceeds, investors and market watchers will likely keep a close eye on the company's progress and financial performance in the coming quarters.