DOMS Industries Q1 FY27 Results (NSE: DOMS)
Signal: Margin pressure
The read
Revenue growth of 19% YoY was solid, but margin compression of 470bps in EBITDA margin led to a 22% decline in PAT, continuing the trend of contracting margins seen in recent quarters. Input cost inflation (cost of materials up 35% vs revenue 19%) was the primary driver.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹670.51 Cr | 19.2% | -71.2% |
| EBIT | ₹63.16 Cr | -23.7% | |
| Net profit | ₹44.49 Cr | -22.3% | |
| EPS | ₹7.33 | -22.4% | |
| EBIT margin | 12.9% |
P&L walk
Revenue grew 19.2% to ₹670.51 Cr, but input cost escalation (Cost of Materials Consumed +35.3% YoY) compressed EBITDA margin 470bps to 12.9%; PAT fell 22.3% to ₹44.49 Cr as operating profit declined.
Segments
Stationery segment (93% of revenue) saw operating margin contract sharply from 19.2% to 13.4% due to input cost pressure; hygiene segment grew 23.7% YoY with stable margins (~6.7%), contributing 1.5% to group PAT.
Key positives
- Revenue growth of 19.2% YoY to ₹670.51 Cr, driven by both segments (>18% each).
- Hygiene segment revenue up 23.7% YoY, operating profit up 22.6% YoY, maintaining margins.
- Acquisition of Reynolds-branded business completed post-quarter (July 1, 2026), expected to expand portfolio.
Key concerns
- EBITDA margin fell 470bps YoY to 12.9%, the lowest in recent quarters, due to input cost inflation.
- Stationery operating margin dropped from 19.2% to 13.4% (580bps contraction), dragging overall profitability.
- PAT declined 22.3% YoY despite revenue growth; margin trajectory remains negative.
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