Doms Industries Doubles Sales, Triples Growth in 6 Years

Doms Industries, a prominent player in the stationery market, has reported another impressive quarter, driven by capacity expansions in key product categories. The company has seen significant growth in its pen, paper products, and hobby & craft divisions, positioning it well for the future.

According to the latest report, Doms' core scholastic stationery business is poised to receive a substantial boost from the increased production capacity that came online in the first quarter of fiscal year 2027. This capacity expansion is expected to help accelerate the company's sales growth in the coming years.

Additionally, the recent reduction in the Goods and Services Tax (GST) rate for pencils, books, and other educational supplies from 12% to 0% has significantly improved the affordability and competitiveness of Doms' products compared to the unorganized segment. This tax change is expected to help the company recover the 3-4% of sales it lost due to GST disruption in the second quarter of fiscal year 2026.

Doms' strength has been its focus on innovation and end-to-end manufacturing, which has enabled the company to offer greater value to its consumers while maintaining attractive margins and return on equity (ROE). The company's decision not to offer credit to its stockists is a testament to the strong demand for its products.

Looking ahead, Doms is well-positioned for continued growth, with opportunities to further expand its presence in the pens business, successfully enter new categories such as toys and bags, and leverage its scale to drive stronger-than-expected margin expansion.