1. At a Glance – The Pencil That Became a Weapon
DOMS Industries is what happens when a humble pencil grows up, lifts weights, and starts bench-pressing balance sheets. As of the latest close, the stock is hovering around ₹2,382, giving the company a market cap of roughly ₹14,456 crore. In the last three months, the stock is down ~7.4%, which tells you one thing: expectations were sky-high, gravity still works.
Operationally though, Q3 FY26 was not a disaster. Quarterly revenue came in at ₹592 crore, up 18.2% YoY, while PAT for the quarter stood at ₹57.9 crore, up 14.1% YoY. Operating margins stayed healthy at ~17–18%, refusing to crack even as raw material and expansion costs loom in the background.
The company trades at a P/E of ~65x and a P/B of ~13x — basically the market saying, “You better keep growing, boss.” With ROCE at 26.2% and ROE at 22.3%, DOMS is priced like a consumer darling, not a boring stationery company. The big question: can pencils really justify luxury-brand valuations forever?
2. Introduction – From Geometry Box to Boardroom Flex
Let’s get one thing straight. DOMS is not just selling pencils. It is selling childhood nostalgia, exam anxiety, drawing-book dreams, and now… diapers. Yes, diapers.
Founded in 2006, DOMS has quietly climbed to become the second-largest branded stationery and art products company in India, with ~29–30% market share in pencils and mathematical instrument boxes in FY23. That’s dominance in products where price sensitivity is brutal and kids chew the inventory.
The IPO gave DOMS visibility, the FILA partnership gave it global swag, and the post-listing expansion plans gave it audacity. Revenue has scaled from ₹654 crore in FY20 to ₹1,913 crore in FY25, a clean multi-year growth story with improving margins.
But here’s the twist: DOMS is now behaving less like a stationery company and more like a consumer platform. Hygiene products, paper stationery via Super Treads, fine art via global brands — this is
no longer just about school bags.
So the real debate is not “Is DOMS a good company?”
It’s: Is DOMS becoming too ambitious, too fast, at too rich a valuation?
3. Business Model – WTF Do They Even Do?
Imagine explaining DOMS to a lazy investor.
DOMS designs, manufactures, and sells everything a child, student, office worker, or bored artist can scribble with, color with, or accidentally lose. The company is fully backward integrated — it makes its own inks, caps, tins, and components. Translation: better margins, tighter control, fewer supplier tantrums.
Its portfolio spans:
- Scholastic stationery (pencils, pens, geometry boxes)
- Scholastic art materials (crayons, sketch pens, pastels)
- Paper stationery (notebooks, registers via Super Treads)
- Office supplies
- Hobby, craft, and fine art products
- Hygiene products under Wowper
DOMS operates 16 manufacturing units across four locations, employing ~12,500 people. Distribution is insane: 4,750+ distributors and 135,000+ retail outlets in India alone. E-commerce contributes a chunky 34% of sales, which is unusually high for stationery.
In short: DOMS is not betting on one age group. It’s betting that Indians never stop writing, drawing, or wiping something.
4. Financials Overview – Numbers Don’t Lie, But They Do Smirk
Quarterly Comparison Table (₹ crore)
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr (Q3 FY25) | Prev Qtr (Q2 FY26) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 592 | 501 | 568 | 18.2% | 4.2% |
| EBITDA | 103 | 88 | 100 | 17.0% | 3.0% |
| PAT | 61 | 54 | 61 | 14.1% | 0.0% |
| EPS (₹) | 9.54 | 8.36 | 9.60 | 14.1% | -0.6% |
