DOMS Industries Ltd

Rating action & instrument

• CRISIL reaffirmed the long-term bank loan rating AA-/Stable for total facilities of ₹252.1 crore.
• Facilities enhanced from ₹159 crore to ₹252.1 crore.
• Rating letter dated 22 August 2026; intimation submitted 24 August 2026.

Agency, surveillance & outlook

• Agency: CRISIL Ratings Limited.
• Outlook: Stable; ratings kept under surveillance with potential revision.
• Rating validity until 31 March 2027; Crisil may withdraw or revise ratings.

Bank facilities detail

• Bank-wise outstanding facilities total ₹252.1 crore.
• Cash Credit HDFC Bank ₹67 crore; Axis Bank ₹50 crore.
• Rupee Term Loan HDFC ₹35 crore; Term Loan HDFC ₹93.1 crore.
• Proposed Long Term Facility ₹7 crore.

AGM notice and annual report access

• 20th AGM scheduled for Sept 3, 2026 at 3:00 PM IST via VC/OAVM.
• Shareholders without registered emails can access AGM notice and Annual Report via provided web-link.
• Web-link to AGM notice and FY2025-26 Annual Report: https://domsindia.com/pdf/Investor_Relations/Financial_Statements/DIL_Annual_Report_FY_2025-26.pdf
• Registrar contact provided for queries: MUFG Intime India Private Limited; tel 810 811 6767; investor.helpdesk@in.mpms.mufg.com.

Overview

• Standalone BRSR for FY2025-26; core activity manufacturing and marketing scholastic stationery and art materials.
• About 12,000 employees/workers; 26 locations nationwide; 12% export contribution.

Key ESG Risks & Opportunities

• Energy management opportunity via solar and briquettes; renewable energy adoption reduces costs.
• Waste management risk from plastics; strong recycling and EPR programs create value.
• Supply chain disruption risk; mitigated by buffer stock and long-term supplier partnerships.
• Health and safety risk; robust HSE framework with in-house OHC and training.

Governance & Policy Highlights

• Board delegates ESG oversight to Risk Management, Stakeholder Relationship, and CSR committees.
• Policies include Code of Conduct, Whistle Blower, Human Rights, Stakeholder Engagement, and Risk Management.
• Reasonable assurance on BRSR Core provided; no penalties disclosed.

Social Responsibility & Workforce

• 2117 permanent employees; 9530 permanent workers; total workers 10057; female share among workers ~62%.
• 38 differently abled employees; all paid equally.
• Health and safety training covers about 23% of employees; 31% of workers.
• 29% of revenue spent on employee well-being.
• Premises accessible to differently abled; whistle blower policy for grievances.
• Shareholder complaints: 2 filed and resolved; customer complaints: 240 filed, 9 pending.

Environmental Performance

• Total energy: 307,184 GJ; renewable share 67,341 GJ; 1 MW solar generated 3,510.61 GJ.
• GHG emissions: Scope 1 425.50 tCO2e; Scope 2 46,787.97 tCO2e; intensity 0.23 tCO2e per lakh turnover.
• Water withdrawals 26,403 KL; consumption 12,385 KL; discharge 14,018 KL.
• Total waste 9,009.68 MT; plastic recycled 1,851.68 MT; sawdust 5,527.56 MT; industrial sludge 149.33 MT.
• ZLD in progress; ISO 45001/ISO 14001 IMS; solar energy installation underway.

Stakeholder Engagement & Complaints

• Key stakeholder groups include shareholders, investors, employees/workers, suppliers, customers, regulators, communities.
• Engagement channels: investor calls, meetings, website; ongoing updates.
• Complaints: shareholders 2 filed (resolved); customers 240 filed, 9 pending.

Other Notable Metrics

• RPTs: purchases 17.57%; sales 6.63%; loans/advances 28.60%; investments 100%.
• Affiliations: nine trade/industry chambers.
• Cybersecurity: IT policy; 0 data breaches; external assurance on BRSR Core.
• Penalties: no non-compliances disclosed; governance strengthened via board committees.
• Waste management: EPR with post-consumer plastic recycling certificates.

AGM Details

• Date and time: 03 September 2026, 03:00 p.m. IST via VC/OAVM
• Mode: VC/OAVM; deemed venue at the company's registered office
• Dividend record date: 27 August 2026
• Remote e-voting window: 31 August 2026 to 02 September 2026

Ordinary Business

• Adopt standalone financial statements for the year ended 31 March 2026.
• Adopt consolidated financial statements for the year ended 31 March 2026.
• Declare final dividend of ₹3.65 per share for 2025-26.
• Re-appoint Massimo Candela as director (retiring by rotation).
• Re-appoint Luca Pelosin as director (retiring by rotation).
• Ratify remuneration of M/s. B.F. Modi & Associates as Cost Auditors for 2026-27.
• Approve creation/modification of mortgages, hypothecations and charges to secure borrowings up to ₹60,000 lakhs.

Financial snapshot

• Standalone revenue from operations: ₹204,964.07 lakhs; up 19.92% YoY.
• Consolidated revenue from operations: ₹232,636.52 lakhs; up 21.63% YoY.
• Standalone EBITDA: ₹35,100.52 lakhs; up 16.72%.
• Consolidated EBITDA: ₹40,259.62 lakhs; up 15.54%.
• Standalone PAT: ₹21,950.71 lakhs; up 15.61%.
• Consolidated PAT: ₹23,956.25 lakhs; up 12.19%.
• Basic EPS (Standalone): ₹36.17; Diluted: ₹36.04.
• Consolidated EPS: ₹37.93 (basic); ₹37.79 (diluted).
• PAT margin: Standalone about 10.3%; consolidated margin not specified here.

Geography & product mix

• Domestic sales accounted for 87.5% of gross product sales; exports 12.5%.
• Consolidated domestic revenue ₹2,02,025.96 lakhs; exports ₹30,192.82 lakhs.
• Product mix highlights: Scholastic stationery ₹76,249.98L; Scholastic art ₹48,405.55L; Office supplies ₹36,533.64L.
• Hobby & craft ₹7,099.69L; Paper stationery ₹20,082.56L; Back to School ₹1,133.02L; Others ₹4,090.03L.
• Nine product categories, over 4,800 SKUs; broad portfolio coverage.

Dividends & capital returns

• Final dividend recommended: ₹3.65 per equity share for FY2025-26.
• Record date: 27 August 2026; payment window: 3 Sep – 2 Oct 2026.
• Dividend payment subject to AGM approval and regulatory requirements.
• Issued equity capital stood at ₹6,068.83 lakhs, with ESOP-driven increase.

Acquisitions and strategic moves

• STPL: 51% equity acquired on 1 Jun 2025; now a subsidiary.
• Pioneer Stationery: stake increased to 64% during 2025; tranches Aug 2025 and Mar 2026.
• Reynolds brand acquisition: assets and IP with US$3.7 million consideration (July 2026 completion).
• ClapJoy Innovations: associate with 30% holding; revenue grew 56.24% in 2025-26.
• Reynolds expansion strengthens writing instruments and school supplies portfolio.

Capex & manufacturing expansion

• Capex approx. ₹29,200 lakhs toward 50+ acre greenfield facility; first two buildings possessed.
• Commercial production expected in Q2 FY2027; phased capacity expansions ongoing.
• Backward integration across 18 facilities; total area >2 million sq ft.
• Land bank ~61 acres; 5 manufacturing locations; ongoing capacity upgrades.

Governance & board matters

• Board size: 16 directors; 1 MD, 4 WD, 3 Non-Executive Non-Independent, 8 Independent.
• May 2025: Massimo Candela appointed Chair; Gianmatteo Terruzzi ceased as Chair.
• May 2025: Om Raveshia joined as Whole-time Director; four new independent directors appointed.
• Reappointments: Santosh Raveshia and Sanjay Rajani reappointed for 2027-31; Postal Ballot approved.
• FY2025-26 board meetings: 5; Independent Directors met once (Mar 24, 2026).
• Statutory auditors: PwC; Secretarial: CS Jignesh Shah; Internal: HTKS; Cost: B.F. Modi & Associates.

BRSR disclosures & ESG highlights

• BRSR Core assurance by NS Bhargava & Co; covers 9 KPIs across governance, environment, social.
• Energy: 3,510.61 GJ solar; 1 MW plant; wood briquettes 1.60 lakh GJ; energy intensity 1.50 GJ/₹ lakh.
• Water: withdrawal 26,403 KL; consumption 12,385 KL; discharge 14,018 KL.
• Workforce: over 13,500 permanent employees; 53% women; 38 differently abled.
• CSR focus: DOMS Foundation; two ongoing Umbergaon projects; CSR spend ₹66.29 lakh; obligation ₹379.96 lakh; unspent ₹313.67 lakh.

CSR & community initiatives

• DOMS Foundation incorporated March 19, 2026; CSR governance via CSR Committee.
• CSR focus areas: education, women empowerment, rural development, healthcare.
• Two ongoing projects: educational institution and hospital at Umbergaon.
• CSR spend totaled ₹66.29 lakh; significant unpaid CSR obligation carried forward.

Audit, risk & internal controls

• Statutory audit: PwC; unqualified stand-alone and consolidated reports.
• Internal controls: robust framework; Audit Committee monitors adequacy and effectiveness.
• Secretarial audit: CS Jignesh Shah; no material qualifications.
• No material regulatory orders; no IEPF transfers required.

Outlook & key risks

• Outlook: consolidated revenue growth target 18-20% for FY2026-27.
• Risks: GST realignment, tariff actions, currency volatility, commodity inflation, supply chain disruptions.
• Company emphasises volume-led growth, price/margin balance, and capital discipline to sustain growth.

AGM Details

• AGM date/time: 03 September 2026, 3:00 p.m. IST, via VC/OAVM.
• Record date for dividend entitlement: 27 August 2026.
• Dividend amount per share not disclosed; subject to AGM approval.

Financial Performance

• Revenue rose 19.2% to INR670 crores in Q1 FY27.
• EBITDA fell 16.4% to INR82.6 crores; margin 12.3%.
• PAT declined to INR45.3 crores; PAT margin 6.8%.
• Gross margins declined about 400 basis points due to raw material inflation.
• ESOP-related costs and channel-partner events reduced margins by ~0.4 percentage points.

Capacity Expansion and Reynolds Integration

• 50+ acre greenfield project development is on track; commissioning ~300,000 sq ft by Q2 FY27.
• Invested close to INR100 crores in Q1 FY27 toward capital investments.
• Reynolds asset acquisition completed; Umbergaon asset movement completed; full sales potential unlocked over time.
• Reynolds had about INR130-140 crores revenue in the previous year.
• Reynolds to operate in parallel; capacity growth will come from planned expansions, not extra volumes.
• Target ASP uplift from Reynolds; some capacity diverted to Reynolds products.
• Plans to launch diaries and paper stationery under Reynolds.

Guidance and Outlook

• Guidance remains 18-20% consolidated sales growth; margin visibility limited due to RM volatility.
• No further price hikes planned in the current quarter.
• FY28 margin target around mid-teens; requires RM normalization.
• Capex cadence discussed; annual plan around INR200-250 crores; execution space constraints.

Pricing and Margin Dynamics

• Average price rise in Q1 was 4-5%.
• Average RM price increase was about 20% with 10-11% consumption growth.
• About 500 bps of pass-through remains to be captured.
• Current quarter not planning further price hikes; volatility to settle before decisions.
• Management will add value to products without sacrificing margins.

Exports and Geography

• Export growth was flat in Q1 FY27; headwinds.
• Exports contribute about 12% of revenue.
• West Asia disruptions caused longer transit times and higher freight.
• West India revenue declined to about INR140 crores YoY from INR186 crores.

Operations and Capital Allocation

• 3x sales per INR invested; historically around 2.7x last year.
• 18-24 months to reach full production capacity.
• Jammu site added 11+ acres; additional land acquisitions.
• 50-acre plant and adjacent expansions to serve both brands.

Q&A Highlights

• Margin trajectory discussed; pricing calibrated to protect market share.
• Reynolds is brand expansion with ASP uplift but limited volume growth.
• Industry pricing aligned with peers; no aggressive hikes.
• ESOP costs for FY27 ~INR10 crores; may rise in FY28.

Issue Overview

• Type of issue: IPO of equity shares.
• Total issue size and net proceeds were revised.
• Part-financing the cost of establishing the proposed project.
• General corporate purposes.

Utilisation of Proceeds

• Utilisation is in line with disclosures in the offer document.
• Net proceeds revised due to lower expenses, allocated to GCP.
• Part-financing object fully utilised; no unutilised funds.
• General Corporate Purposes object fully utilised; no unutilised funds.
• Unutilised funds: none.
• No reallocation among objects beyond net-proceeds adjustment.
• No delay in implementation.

Governance and Compliance

• Not all statutory approvals for the objects have been obtained.
• No material events reported that could affect viability.
• No additional governance issues noted.

GCP

• GCP utilised for general corporate purposes.
• Board approval for GCP allocation not explicitly stated.