DOMS Industries (DOMS) Q2 24/25 earnings summary

Executive summary

• Achieved strong revenue and profit growth in Q2 and H1 FY25, driven by writing pens, adhesives, kits, and the Uniclan acquisition, despite challenging market conditions.

• Domestic sales grew 25% and now constitute 85% of total sales, reflecting strong brand acceptance and expanded reach.

• Successfully completed the acquisition of a 51.8% stake in Uniclan Healthcare, expanding into the baby hygiene segment.

• Expanded product portfolio and retail footprint, with new SKUs in writing instruments, marker pens, adhesives, kits, fine art, and scholastic stationery.

• Ongoing capacity expansions in mathematical boxes, paper stationery, and pen plants to support growth.

Financial highlights

• Q2 FY25 consolidated operating revenue: ₹457.8 Cr (₹45,777.18 lakhs), up 19.7% year-over-year; H1 FY25: ₹902.8 Cr (₹90,278.35 lakhs), up 18.5% year-over-year.

• Q2 FY25 EBITDA: ₹85.9 Cr (18.8% margin), up 31.7% YoY; H1 FY25 EBITDA: ₹172.3 Cr (19.1% margin), up 35.2% YoY.

• Q2 FY25 PAT: ₹53.7 Cr (11.7% margin), up 42.8% YoY; H1 FY25 PAT: ₹108.0 Cr (12.0% margin), up 46.1% YoY.

• Gross profit margin improved to 43.4% in Q2 FY25 from 41.1% YoY.

• Basic and diluted EPS for H1 FY25 were ₹17.79, up from ₹13.14 YoY.

Outlook and guidance

• Core business revenue growth target of close to 20% for FY25, excluding Uniclan.

• Consolidated revenue growth for FY25 expected at 23%-25% with Uniclan's full integration.

• EBITDA margin guidance for FY25 at 17%-17.5%, factoring in Uniclan's lower margins and ESOP impact.

• Planned launch of school bags in Q4 FY25, with initial capacity of 25,000 bags per month.

• Ongoing capacity expansions in pencils, paper stationery, fine art, adhesives, and polymer pencils, with new facilities expected to commence production by Q4 FY25.