DOMS Industries Q2 FY27 Results (NSE: DOMS)

2 Nov 2026 · Analysis by Alpha Inflection

Signal: Margin pressure

The read

The growth engine remains intact at ₹58908.35 lakh of Q2 revenue, up 18.1% YoY, but the earnings trajectory is still under pressure: gross margin contracted 475bps to 37.0%, EBITDA margin contracted 535bps to 13.2%, and PAT fell 37.0% to ₹3514.69 lakh after a ₹1090.10 lakh flood loss. Sequential EBITDA margin improved 55bps from 12.7%, but this is an early stabilization signal rather than a confirmed margin recovery.

P&L walk

Standalone revenue rose 18.1% YoY to ₹58908.35 lakh, but gross margin compressed 475bps to 37.0% as material costs rose to 63.0% of revenue including purchases and inventory movements; EBITDA margin fell 535bps to 13.2%, while PAT declined 37.0% after a ₹1090.10 lakh flood-related exceptional loss.

Key positives

• Revenue from operations reached ₹58908.35 lakh, up 18.1% YoY despite a 2.4% sequential decline, preserving a double-digit growth trajectory.
• PPE plus CWIP rose 24.5% to ₹84744.71 lakh, including CWIP growth of 90.7% to ₹30087.15 lakh, supporting future manufacturing capacity.
• Finance costs were only ₹96.96 lakh, up 9.6% YoY, despite borrowings rising to ₹16105.71 lakh.

Key concerns

• Gross margin compressed 475bps YoY to 37.0%, with cost of materials consumed, purchases and inventory movements rising to 63.0% of revenue from 58.2%; the filing does not disclose the specific driver.
• Employee benefits expense grew 26.8% YoY to ₹8910.78 lakh, 8.7 percentage points faster than revenue growth, raising opex intensity to 15.1%.
• PAT declined 37.0% YoY to ₹3514.69 lakh, with the operating decline compounded by a ₹1090.10 lakh exceptional flood-related loss.
• Borrowings increased from ₹5016.29 lakh at March 31, 2026 to ₹16105.71 lakh at September 30, 2026 while H1 operating cash flow fell 28.3% YoY to ₹10602.90 lakh.

View original filing

Research and educational content only. Not investment advice.