DOMS Industries Limited has released the transcript of its Investor Conference Call concerning the Unaudited Standalone and Consolidated Financial Results for the quarter and nine months ended December 31, 2025. The call, held on February 02, 2026, provided insights into the company's performance and strategic initiatives. During the call, the company reported a consolidated sales growth of 18.2% year-on-year for Q3 FY'26, reaching ₹592.2 crores. For the nine-month period, consolidated growth stood at 22.7%, positioning the company to close the fiscal year within its guided range of 18% to 20%. Growth was driven by strong performances across core categories, including office supplies, kits & combos, and hobby & craft segments, bolstered by new product launches and enhanced capacities. The baby hygiene business also saw a significant uptake. Geographically, domestic demand continues to be a primary driver, representing over 85% of overall sales. Despite headwinds in the U.S. market due to tariffs, export revenue showed a double-digit growth of over 15% for the nine-month period, supported by strong demand in Nepal, Sri Lanka, the Middle East, and African countries. The distribution agreement with FILA has also facilitated exports to countries like Chile, Mexico, Canada, Europe, Turkey, South Africa, and Australia. The company announced the formation of a 50-50 Joint Venture (JV) with Seven SpA, a FILA Group company, expected to be completed by the end of Q1 FY'27. This JV will focus on manufacturing and supplying backpacks, bags, and pencil cases for the premium segment, combining FILA's global expertise with DOMS' manufacturing capabilities. The manufacturing for this JV will be based in Umbergaon. Financially, consolidated EBITDA for Q3 FY'26 grew by 17.7% to ₹103.4 crores, with an EBITDA margin of 17.5%. Profit After Tax (PAT) for the quarter was ₹61.4 crores, a growth of 13.1%, with a PAT margin of 10.4%. The company has invested approximately ₹230 crores in consolidated Capex for the 9-month period, with the full fiscal year Capex expected to exceed ₹250 crores. Expansion initiatives are progressing, including enhancements in existing infrastructure and a 44-acre project. Commercial production from the first building of the 44-acre project is expected to commence in Q2 FY'27. The company plans similar Capex investments for the next financial year, targeting between ₹225 crores to ₹250 crores. The construction of 9 production buildings is planned for the 45-acre project, with each building approximately 150,000 square feet. Capacity expansion will focus initially on wooden pencils, followed by writing instruments, pencil accessories, and scholastic art materials. Regarding the JV with Seven SpA, the initial investment is up to ₹15 crores from both partners. The JV will initially focus on exporting ultra-premium backpacks manufactured in India to Seven and other FILA Group companies globally. While the domestic market for such premium products is limited, targeted sales through the DOMS distribution network are planned for a niche segment. The company anticipates a 3x to 4x gross fixed asset turnover for this JV over time. In the scholastic stationery and art segment, the company grew by 11.5% overall. Despite a 50% tariff impact on exports of wooden pencils to the U.S., growth was supported by new mechanical pencils and increased capacity for wooden color lead pencils. The company aims to increase its market share in the pencil segment to around 45% with new capacities coming online. The company also continues to see growth in the office supplies segment, driven by writing instruments, with the full capacity build-up from previous quarters now coming into production.
