Shares of DOMS Industries Limited slipped over 4 per cent on the National Stock Exchange on Tuesday morning after the stationery maker reported a sharp decline in quarterly profit, weighed down by rising raw material costs and higher operating expenses.The stock was trading at ₹2,197.20 around 10.33 AM, down ₹94.80 or 4.14 per cent from its previous close of ₹2,292. The scrip opened at ₹2,175, touching a high of ₹2,238 and a low of ₹2,175 in early trade. The company’s market capitalisation stood at approximately ₹13,354 crore at the same time.The sell-off follows results released on Monday, where DOMS reported consolidated revenue of ₹670.5 crore for the quarter ended June 30, 2026, a 19.2 per cent year-on-year increase but a modest sequential uptick of 11 per cent.However, profitability took a hit. EBITDA fell 16.4 per cent year-on-year to ₹82.6 crore, with margins contracting sharply to 12.3 per cent from 17.6 per cent in the same quarter last year and 16.7 per cent in the preceding quarter. Profit after tax declined 23.4 per cent year-on-year to ₹45.3 crore.Management attributed the margin compression to significant volatility in raw material costs, driven by the West Asia conflict and broader global uncertainties.Higher employee benefit expenses, on account of fresh ESOP grants and headcount additions ahead of the commissioning of a new facility, along with elevated event-related costs further dented profitability.On the positive side, domestic sales grew 22.5 per cent year-on-year to ₹610 crore, supported by back-to-school season demand and successful new product launches.The company also completed the acquisition of the Reynolds brand to bolster its writing instruments portfolio, and said commercialisation of its 50-plus acre greenfield facility in Umbergaon is on track for the end of the second quarter of FY27.The stock trades at a consensus forward P/E of 53.3x for FY27 and 41.7x for FY28. At current levels, it is down about 15 per cent year-to-date and roughly 7 per cent over the past year, underperforming the broader Nifty 500.Published on August 4, 2026