DOMS Q1 FY27: PAT falls 23% YoY to ₹45.3 Cr as raw material costs squeeze margins

DOMS Industries' consolidated revenue rose 19.3% YoY to ₹670.51 Cr (and 11.0% QoQ from ₹603.98 Cr) — near the top of management's 17-20% FY27 revenue growth guidance from the last concall. But consolidated PAT fell 23.4% YoY to ₹45.28 Cr (₹59.10 Cr a year ago) and 22.2% QoQ (₹58.20 Cr), so the quarter reads as a profitability miss riding on top of an on-plan topline.

The entire story sits on the cost line: cost of materials consumed rose 35.3% YoY to ₹369.86 Cr, outpacing revenue growth by roughly 16 points and pushing materials cost to 55.2% of revenue from 48.6% a year ago. Consolidated operating margin (EBITDA/revenue, ex-other income) compressed to 12.31% from 17.56% YoY and 16.71% QoQ — a roughly 525bps YoY contraction — while net margin fell to 6.75% from 10.43% YoY. Employee costs (+23.4% YoY) and other expenses (+27.8% YoY) grew broadly in line with revenue and were not the driver; a lower finance cost (₹2.02 Cr vs ₹3.48 Cr YoY, on-reduced borrowings) partially offset but could not close the gap. The effective tax rate was stable near 26%, so none of the PAT miss came from tax.

The stock went into the print at ₹2,242, down 3% over the past month of trading.

For context: revenue is at a 6-quarter high.

Standalone PAT ₹42.87 Cr (EPS ₹7.06), down a similar ~23% YoY — no material divergence from consolidated

Consolidated EPS ₹7.33 vs ₹9.35 (Q4 FY26) and ₹9.44 (Q1 FY26)

Management's own prior guidance explicitly flagged 'near-term margins may face pressure due to raw material volatility,' to be mitigated 'through calibrated pricing and cost efficiencies' — this quarter confirms the pressure materialised, but at a magnitude (500+bps) that suggests the mitigation levers have not yet shown up in the numbers. No formal analyst consensus for this specific quarter was found in a web search (DOMS's Q1 FY27 concall with CFO Rahul Shah is scheduled for August 4, 2026, a day after this filing), so the print cannot be benchmarked against street numbers; vsStreet is left unknown rather than guessed. No management press release or MD&A commentary accompanied this filing beyond the board-outcome letter and the results statement itself. By segment, Stationery Products revenue grew 18.9% YoY with an operating margin of 13.4% (₹835.62 Cr... figures in lakhs: ₹83.56 Cr operating profit on ₹625.91 Cr revenue), while the Hygiene (Uniclan) segment grew revenue 23.7% YoY but its operating margin remains around 6.7% — still well short of management's stated ~10% long-term EBITDA target for that segment. Separately this quarter, promoter F.I.L.A. sold a 7% stake (~₹934.74 Cr) and the company won an appeal setting aside a ₹17.75 lakh tax penalty — neither has a P&L bearing.