DOMS FY26 capex reached Rs 292.8 crore, above operating cash

DOMS Industries Limited spent Rs 292.8 crore on capital expenditure in FY26, Rs 38.5 crore more than its Rs 254.3 crore operating cash flow, as property, plant and equipment and capital work-in-progress rose to Rs 756.5 crore on March 31, 2026. DOMS reported a 0.02-times debt-to-equity ratio at year-end.

What did DOMS spend on FY26 capital expenditure?

DOMS spent Rs 292.8 crore on purchases of property, plant and equipment, including capital work-in-progress and capital advances, plus upfront payment for leasehold land in FY26. This was Rs 79.5 crore, or 37%, above the Rs 213.3 crore spent in FY25 and was the highest annual amount in the FY22 to FY26 cash-flow series. The presentation describes the expenditure as growth-driven investment.

The expenditure outpaced the Rs 254.3 crore of net cash generated from operating activities by Rs 38.5 crore in FY26. Operating cash flow nevertheless increased by Rs 71 crore from Rs 183.3 crore in FY25, while cash generated from operations before tax payments rose to Rs 339.1 crore from Rs 259.1 crore. Net working-capital movement consumed Rs 82.4 crore in FY26, compared with Rs 97.7 crore in FY25.

How did DOMS fund investment while maintaining low debt?

DOMS generated Rs 254.3 crore of operating cash flow and recorded Rs 159.7 crore of other inflow from investing activities during its FY26 investment cycle, while also repaying borrowings and issuing no fresh shares. Net cash used in investing activities was Rs 148.6 crore, less than the Rs 292.8 crore gross capital expenditure because of the other investing inflow. It also paid Rs 15.8 crore for acquisition of a subsidiary, net of cash, during FY26.

DOMS repaid a net Rs 64.5 crore of borrowings in FY26, after a net borrowing increase of Rs 3.5 crore in FY25. The presentation reports a debt-to-equity ratio of 0.02 times as of March 31, 2026, alongside net worth of Rs 1,302.1 crore and a cash balance of Rs 61.8 crore. Net cash used in financing activities was Rs 112.7 crore, including Rs 19.1 crore of dividends, Rs 17.2 crore of lease-liability payments and Rs 12 crore of finance costs.

Cash and cash equivalents declined by Rs 7 crore in FY26, following a Rs 4 crore increase in FY25. The balance sheet showed Rs 53.5 crore of cash and cash equivalents and Rs 8.3 crore of bank balances other than cash equivalents at FY26-end, together corresponding to the reported Rs 61.8 crore cash balance. No proceeds from fresh issue of shares were recorded in FY26, compared with Rs 334.7 crore in FY24.

How much manufacturing capacity was under construction at DOMS?

DOMS had Rs 594.4 crore of property, plant and equipment and Rs 162.1 crore of capital work-in-progress at March 31, 2026, for a combined Rs 756.5 crore. That total was Rs 197.8 crore above Rs 558.7 crore a year earlier, when property, plant and equipment was Rs 498.4 crore and capital work-in-progress was Rs 60.3 crore. Capital work-in-progress alone rose by Rs 101.8 crore in FY26.

The rise in work-in-progress indicates that part of the investment remained under construction rather than already classified as operating fixed assets. DOMS reported on its strategic-growth page that first-phase construction at a planned site of about 50-plus acres was nearing completion. Management also said it was pursuing broad-based capacity expansion across stationery and art-material categories, alongside regular modernization and upgrades at existing facilities.

The asset build occurred as revenue from operations increased to Rs 2,326.4 crore in FY26 from Rs 1,912.6 crore in FY25, an increase of Rs 413.8 crore. The company reported gross fixed-asset turnover of 2.7 times at March 31, 2026. Depreciation and amortization increased to Rs 88.1 crore in FY26 from Rs 69.2 crore in FY25, consistent with a larger asset base, although the presentation does not allocate depreciation between new and existing facilities.

What changed in DOMS cash flow and balance sheet during FY26?

DOMS increased profit after tax to Rs 239.6 crore in FY26 from Rs 213.5 crore in FY25, while profit before tax rose to Rs 322.3 crore from Rs 286.8 crore. Operating cash flow grew faster in absolute rupee terms, reaching Rs 254.3 crore, but remained below the year’s Rs 292.8 crore capital expenditure. Income tax paid, net of refunds, increased to Rs 84.7 crore from Rs 75.7 crore.

Working-capital investment continued to absorb cash, although the outflow narrowed by Rs 15.3 crore year on year. Inventories increased to Rs 377 crore from Rs 294 crore, and trade receivables increased to Rs 163.6 crore from Rs 134.3 crore at March 31, 2026. DOMS reported working-capital days of 65 days for FY26, but the presentation does not provide comparable days for FY25.

Total assets rose to Rs 1,711.8 crore at FY26-end from Rs 1,519.6 crore at FY25-end. Total non-current assets increased by Rs 242.2 crore to Rs 1,073 crore, while total current assets declined by Rs 49.6 crore to Rs 639.2 crore, largely reflecting bank balances other than cash equivalents falling to Rs 8.3 crore from Rs 164.9 crore. Total equity increased by Rs 219.6 crore to Rs 1,302.1 crore, while total non-current liabilities fell to Rs 115.9 crore from Rs 180.2 crore.

Conclusion

DOMS entered FY26 with a larger manufacturing asset base after spending Rs 292.8 crore on capital expenditure, an amount exceeding operating cash flow by Rs 38.5 crore. The investment coincided with a Rs 413.8 crore increase in revenue, higher profit after tax and a decline in net borrowings, while capital work-in-progress more than doubled to Rs 162.1 crore.

The next disclosed milestone is commercialization of operations at the planned 50-plus-acre site, where management said first-phase construction was nearing completion. Investors can watch whether that project moves capital work-in-progress into operating assets, how the reported 2.7-times gross fixed-asset turnover develops, and whether operating cash flow continues to cover a substantial share of expansion spending.