DOMS Industries Limited has filed its quarterly monitoring agency report for the quarter ended December 31, 2025, in compliance with SEBI regulations governing IPO proceeds utilization. The comprehensive report, prepared by CRISIL Ratings Limited as the appointed monitoring agency, provides detailed insights into the deployment of funds raised through the company's Initial Public Offer.

IPO Proceeds Utilization Overview

The monitoring report reveals significant progress in fund deployment during the third quarter of fiscal year 2026. The company utilized Rs 579.21 million during the quarter, bringing the total cumulative utilization to Rs 3,073.04 million from net proceeds of Rs 3,327.24 million.

Project Financing Progress

The primary objective of part-financing the proposed project continues to receive substantial allocation. Out of the allocated Rs 2,800.00 million for this purpose, Rs 2,545.79 million has been deployed, leaving Rs 254.20 million pending utilization. This project encompasses building construction, civil work, purchase of plant and machinery, utilities including sub-station installation, and miscellaneous contingencies.

The general corporate purposes allocation of Rs 527.24 million has been fully utilized. This revised amount reflects an increase from the original Rs 515.75 million due to lower actual issue expenses compared to estimates, with the Rs 11.49 million difference adjusted to general corporate purposes.

Investment of Unutilized Funds

The company has deployed the remaining Rs 254.20 million in fixed deposits and monitoring accounts to ensure optimal returns while maintaining liquidity. The investment strategy demonstrates prudent financial management:

The total earnings from these investments during the quarter amounted to Rs 5.03 million, bringing the market value of investments to Rs 259.23 million.

Regulatory Compliance and Monitoring

The report confirms full compliance with SEBI regulations, with no deviations from disclosed objects or material changes in financing means. CRISIL Ratings Limited, as the monitoring agency, has verified that all utilization aligns with the offer document disclosures. The company has obtained necessary certifications from M/s M I Shah & Co., Chartered Accountants, confirming the accuracy of fund deployment.

IPO Background

DOMS Industries conducted its Initial Public Offer from December 13-15, 2023, raising Rs 12,000.00 million in total. The issue comprised fresh issuance of Rs 3,500.00 million (net proceeds of Rs 3,327.24 million) and an offer for sale of Rs 8,500.00 million. The monitoring agency's oversight covers only the net proceeds from the fresh issuance portion.

The systematic deployment of IPO proceeds reflects the company's commitment to executing its expansion plans while maintaining transparency and regulatory compliance. With approximately 92.36% of proceeds already utilized, the company appears on track to complete its stated objectives in the coming quarters.

DOMS Industries Limited has delivered strong financial performance for Q3FY26, demonstrating sustained growth across its diversified product portfolio. The stationery and art products manufacturer reported consolidated revenue growth of 18.2% year-on-year, reflecting robust demand across domestic and international markets.

Financial Performance Overview

The company's Q3FY26 results showcase consistent execution with revenue from operations reaching ₹592.2 crores compared to ₹501.1 crores in Q3FY25. Sequential growth of 4.3% from Q2FY26 further highlights the sustained momentum. The consolidated net profit stood at ₹614.08 crores versus ₹542.80 crores in the corresponding period last year.

Strategic Corporate Developments

The Board of Directors approved several significant strategic initiatives during their meeting held on January 30, 2026. The company announced the formation of a 50:50 Joint Venture with Seven SpA, a F.I.L.A. Group company, focusing on backpacks, pencil cases and bags. The JVC will leverage collective industry capabilities to supply products globally for the F.I.L.A. Group and develop differentiated products for the Indian market.

Corporate Social Responsibility Initiative

The company incorporated DOMS Foundation under Section 8 of The Companies Act, 2013, to enhance the effectiveness and reach of the Group's CSR initiatives. The foundation will promote, undertake, plan, organize, implement and execute various Corporate Social Responsibility initiatives, adopting a focused strategy to meet community needs and tackle societal challenges.

Business Segment Performance

According to Managing Director Santosh Raveshia, the quarterly growth was primarily driven by sustained performance across multiple categories including Scholastic Art Material, Office Supplies, Kits & Combos, Hobby & Craft segment, and Baby hygiene business. The baby hygiene segment showed healthy growth driven by winter demand for diapers and enhanced capacity.

Employee Stock Option Plan

The Board approved the allotment of 525 equity shares of face value ₹10 each pursuant to the exercise of options under DOMS Industries Limited - Employee Stock Option Plan 2023. The exercise price per share was ₹250 with a premium of ₹240 per share. Consequent to this allotment, the paid-up equity share capital increased to ₹60.69 crores comprising 6,06,88,336 equity shares.

Future Outlook and Expansion Plans

The company remains focused on commencing operations from its 44-acre expansion project. While unseasonal rains caused minor construction delays, significant progress has been made with initial building completion expected in Q1FY27 and commercial production anticipated during Q2FY27. Additional capital investments in new capacity additions and process modernization are expected to enhance operational efficiency and support sustained growth.