Doms Industries Ltd (NSE: DOMS) Q3 2025 Earnings Call dated Feb. 04, 2025
Corporate Participants:
Rahul Shah — Chief Financial Officer
Analysts:
Aniruddha Joshi — Analyst
Kunal Vora — Analyst
Percy Panthaki — Analyst
Sneha Talreja — Analyst
Jinesh Joshi — Analyst
Abhishek — Analyst
Priyank Chheda — Analyst
Naitik Mutha — Analyst
Unidentified Participant
Manish Goyal — Analyst
Aradhana Jain — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to Doms Industries Limited Q3 and Nine-Month FY ’25 Earnings Conference Call.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing star then zero on your touchstone phone. Please note that this conference is being recorded.
Before we begin, a brief disclaimer. The presentation which Industries Limited has uploaded on the stock exchange and their website, including the discussions during this call contains or may contain certain forward-looking statements concerning DOM’s Industries Limited business prospects and profitability, which are subject to several risks and uncertainties and the actual result could materially differ from those in such forward-looking statements.
I now hand the conference over to Mr Aniruddha Joshi from ICICI Securities. Thank you, and over to you, sir.
Aniruddha Joshi — Analyst
Yeah, thanks, Reyo. On behalf of ICICI Securities, we welcome you all to Q3 and nine months FY ’25 results conference call of Industries Limited. We have with us today senior management represented by Mr Rahul Shah, Chief Financial Officer. Now I hand over the call to Mr Rahul Shah for his initial comments on the quarterly as well as nine months performance. And then we’ll open the floor for question-and-answer session. Thanks, and over to you, Mr Rahul.
Rahul Shah — Chief Financial Officer
Thank you,. Good afternoon, everyone. Firstly, wish you all a great 2025. It is our pleasure to welcome you all to the conference call for Q3 FY ’25. Due to certain unforeseen circumstances, Santojbai, our Managing Director is not able to join the call today. Though I have with me the team from Marathon Capital, our Investor Relations Advisors.
Despite the tid market conditions and festive season in India as well as globally, we continued on our consistent growth trajectory during the 3rd-quarter FY ’25. With successful expansion initiatives in the stationery and art materials segment across writing instruments, paper stationery, coupled with widening of art product portfolio along with introduction of differentiated range of markers and highlighters and kits and combination packs together have proppled growth during the quarter.
Further, the performance of UniClen Healthcare has yielded positive results contributing to our growth trajectory as well. As part of future growth initiative at UniClen, as mentioned during our previous conference call, I’m happy to share that we have successfully installed the third diaper production line, increasing our baby diaper capacity. We have always believed that our people have been one of our strongest pillars for the growth. Their dedication, passion and tireless efforts to innovate, design and deliver high-quality products have enabled doms to be ahead of the curve.
As a recognition of their ongoing contribution and understanding the importance of further strengthening our bond with our people to ensure sustainable success, we granted ESOPS to more than 900 members of the family. I’m really proud and content to make them a true partner in our success. Another milestone achieved during the quarter has been the successful installation of a 1 megawatt solar plant at our current flagship facility in Umerga, Gujarat. By harnessing the power of renewable energy, we aim to reducing our carbon footprint and promoting eco-friendly practices.
This process of harnessing the power of renewable energy is expected to continue as we evaluate and undertake projects for solar electrification at our other manufacturing locations. As a testimony to the hard work and performance of our company, I am pleased to share that our company has for the third time in a row awarded with the Top Exporters award for being the number-one exporter for the financial year ’23-’24 by the Penn and Stationery Association of India, underscoring company’s role as a front-runner in the Indian export market.
On the marketing front, we persist in our efforts to connect with our audience in innovative and engaging ways, seamlessly integrating online and offline initiatives. This combined with the overwhelming consumer response to our products underscores our dedication to innovative design and product engineering as well as rising popularity of our flagship brand. Going-forward, we remain cautiously optimistic on improvement in-demand conditions with tailwinds from the upcoming back-to-school season, growing emphasis on education and increased government spending in this sector contributing to the growth momentum in the near-term.
Our strategic priorities remain unchanged with focus on delivering consistent and profitable volume growth through expanding our production capacities, investing in our brands and strengthening our supply-chain, positioning ourselves for sustainable long-term growth. This coupled with a solid pipeline of innovative products to be launched across categories as well as targeted distribution network expansion, both in India as well as globally should lay down strong foundation for our projected growth trajectory.
Coming to the details of our financial performance for the quarter ended and nine-month period ending, 31, 2024. And to begin with a quick overview on the consolidated results, consolidated operating revenues for Q3 FY ’25 stood at INR501.1 crores, a growth of nearly 35% compared to the same quarter last financial year. Comparable consolidated operating revenue, excluding Healthcare sales impact grew by 21.4% in Q3 FY ’25. This increase in sales was predominantly on account of growth in segments like office supplies, paper stationery and kits and combination packs.
The consolidated EBITDA for Q3 FY ’25 grew by 26.7% to INR87.9 crores as compared to INR69.3 crores in Q3 FY ’24. The EBITDA margins marginally declined by about 110 basis-points to 17.5% from 18.7%, resulting of increase in sales and distribution expenses, primarily due to consolidation of UniqueLen and on account of the accounting impact of ESOPs granted in Q3 FY ’25. As a result of these factors, company’s consolidated EBITDA margin stood at 17.5% as on expected lines, but higher than our targeted and guided — guided range of 16% to 17% as provided during our previous conversations.
The consolidated PAT rose from INR38.8 crores in Q3 FY ’24 to INR54.3 crores in Q3 FY ’25, registering a growth of nearly 40%. Talking of our results for the nine-month period, our consolidated revenues from operations grew by 23.9% to INR1,403.9 crores in nine months FY ’25 from INR1,133.4 crores in nine months FY ’24. EBITDA for nine months FY ’25 grew by 32.2% to INR260.2 crores from INR196.8 crores in Nine-Month FY ’24. Further, our PAT also increased from INR112.7 crores in nine months FY ’24 to INR162.3 crores in nine months FY ’25, a growth of 43.9%.
However, the working capital on a consolidated basis increased marginally to about 53 days, primarily on account of the consolidation impact of UniClen that results — that resulted in higher trade receivables on a consolidated basis. Excluding the impact of UniClen, the working capital days were around 45 days, in-line with our earlier trend.
So on the capex front, we continue to focus on expanding our manufacturing capabilities to capitalize on the growth potential during the Nine-Month period, excluding the impact of acquisition, at a consolidated level, the company has invested over INR100 crores towards capital expenditure, including capital advances. These funds were primarily invested in — for the construction activities and purchase of plant and machinery and installation of the solar plant. Further, UniClen has also undertaken a capex of nearly INR11.5 crores during the period of consolidation, primarily towards installation of additional line of diaper manufacturing.
With this, I will request to open the floor for question-and-answers. Thank you very much.
Questions and Answers:
Operator
Thank you. We will now begin the question-and-answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Kunal Bora from BNP Paribas. Please go-ahead.
Kunal Vora
Yeah. Thanks for the opportunity and congrats for a good quarter. First is on exports. So it seems to be down for third consecutive quarter. So is it sales to or branded sales in other markets? What’s happening on exports?
Rahul Shah
Hi, Konal by thank you for your question. In terms of exports, sales were down approximately 5% in the quarter compared to the previous year. Primarily on account of the ongoing situation in Middle-East and the slowdown in Europe. So, but you know, going-forward, our FELA Group sales were in-line, it was primarily on account of, like I said, the own branded sales that we did in Middle-East geographies.
But while the ongoing geopolitical tensions across the Middle-East have impacted our export business, we believe export markets are expected to recover soon now. Further, we are also soon entering into distribution agreements with FILA and FILA Group companies to start exports of branded stationery in their local markets, which again should have a positive impact on our export business growth.
Kunal Vora
This is a temporary issue and you think things will recover from Europe?
Rahul Shah
Yes. But the signs that we are getting from the Middle-East market, they are soon expected to you know, begin business again.
Kunal Vora
Okay. Understood. Okay. Thanks. Second is on, when did the additional INR24 crores like diaper capacity come in and like you are at yields about INR50 crores. So how should we look at 4th-quarter in FY ’26?
Rahul Shah
So, basically, you know is slightly a seasonal business and their 4th-quarter — 3rd-quarter is always the strongest in terms of sales because of the climatic condition. It’s like end of monsoons and beginning of winters, which is due to the climatic condition, demand for diaper increases. This high-demand stays until mid of February to-end of February. Our summer is a little dull time.
Then again, once the rainy season starts, the market picks up again. The new diaper machine got installed towards the last week of November and first week of December. Right now, we have now a production capacity of about INR65 crore diapers, but considering the changes that happen in the pack sizes as well as in the sizes of diaper we manufacture, we could about utilize about 80% to 85% of the capacity.
With the partnership with, we soon you know, started taking some amount of active role in terms of helping them to set-up their distribution network. They’ve already launched diapers under the co-branding with. It’s now called as, some of our channel partners are already onboarded for sales of UniClen, our one of our two superstockist in Nepal is now a superstockist for diapers in Nepal.
So considering these factors, you know, we believe that we should be able to have better year-end results in FY ’26, but in terms of number wouldn’t want to, you know, give how much percentage because we are still learning the business and still understanding the market sensitivities. Hopefully, we should have our business plan for the coming year ready by March and during our interaction, we would have more numbers towards this.
Kunal Vora
But the 82% capacity utilization do you think will get maintained in FY ’26 with the larger capacity or you think with new capacity, it could go down.
Rahul Shah
No, no, no, along with the larger capacity.
Kunal Vora
Okay, okay. Understood. Okay. And FY ’26 growth and margin outlook, like say, I understand you uniquely won’t be able to share right now, but otherwise for the business excluding, how is it looking? You mentioned like cautiously optimistic. So I just wanted to get some sense, are you seeing some concerns on-demand?
Rahul Shah
So not seeing any concerns on-demand. It’s just that the markets have been opening up. We believe the back-to-school season should bode well for the company. So we continue to maintain a full revenue growth target of full-year revenue growth target of about 23% to 25% on a consolidated basis, including. You know, in terms of margin, like we’ve always mentioned, our range is always between 16% to 17%. Today at a consolidated level, we are at about 17.5%. But this was, like I said, a very good quarter because of the seasonality at. Therefore, the margins in this quarter are always a little on the higher side because the fixed-cost absorption happens better. But overall, we believe margins should be in the range of 7% to 8% initially and slowly we’ll be able to drive them to about a double-digit number. So considering these factors, we continue to from a margin perspective, a guide for between a 16% to 17% margin range.
Kunal Vora
So for FY ’26, I mean, ’23 25 this year it looks reasonable maybe top-end, but FY ’26 FY ’26, okay, similar, 20% 25% growth and 16% 70% margin. But margin looks 26%.
Rahul Shah
I am talking a 23% to 25% revenue growth target for FY ’25.
Kunal Vora
FY ’26, what’s the expectation?
Rahul Shah
Yeah. Sir, let’s see how the market goes, how is this back-to-school season works? I think for the coming year, once we sit together, have our business plan, which we typically do in the month of March, we’ll be able to come back to you all with the guidance for the coming financial year.
Kunal Vora
But you have more capacity coming in, right, next year.
Rahul Shah
So capacity addition is ongoing. Like we’ve shared earlier, capacity increase is expected in scholastic, stationery, you know, but that’s something which will take about six-odd months-to come completely on-board. We’ll soon increase our pencil manufacturing capacity, but that will happen. On a monthly basis, we’ll keep getting something incrementally. So — and towards the end of Q3 FY ’26, we’ll also have the new building coming in from the 44 acre plant where again there would be capacity increase happening to begin with under the office supply segment and sketch and other such products.
Kunal Vora
Okay. Okay. Thanks all questions, but I’ll come back-in the queue. Yeah.
Operator
Thank you. Next question is from Rakshit Desai from IIFL.
Percy Panthaki
Percy Panthaki. Sir, just wanted to understand in the first-nine months of the year, excluding UniClan, what is the sort of assets which have actually got capitalized, not CWIP and not the capex in cash-flow terms, but what is the actual addition to the gross block in the Nine-Month period?
Rahul Shah
The actual addition, just give me a second you work for the entire Nine-Month period?
Percy Panthaki
Yes, yes, Nine-Month period.
Rahul Shah
So at a gross fixed asset-level the additions have been close to about INR90 crores.
Percy Panthaki
This is excluding, right.
Rahul Shah
Excluding.
Percy Panthaki
Okay. So just wanted to understand, I mean, with such a small sort of addition to gross block, how we are able to grow? It’s not as if we had a lot of spare capacity to start with.
Rahul Shah
There were some capacity additions which we had done during the last year also the last financial year. A lot of it actually came towards, for example, our second 10 plant, it came in-production in February of ’24, right? So the impact during the last year was smaller, but in this year for the entire nine-month period, we are getting benefit of it.
Percy Panthaki
Understood. So if this is like a rolling thing that whatever capex you do in one year, you get the benefit of that in the next year, then given that we have done such low capex in FY ’25, do we see a problem in terms of ramping-up our sales in FY ’26?
Rahul Shah
No, like I said, we capex is like you said, it’s an ongoing thing rolling out, we’ll get — keep getting benefit some capacity additions, which have already happened during the second and 3rd-quarter of this financial year, we get a full-year sales impact in the coming years, a plus new capacities are also being added. So as such, our plans with respect to capacity additions, timely capacity addition, which will drive our revenue growth in the coming — coming year is already in-place. It is that when it will come, there can be timing difference of a couple of months, but otherwise, I think everything is well-planned. If the markets you know, support, we don’t see any reason for any challenges that would come from a capacity perspective to meet the demand.
Percy Panthaki
And how much of this INR90 crore has happened in the new land parcel?
Rahul Shah
A new land parcel, absolutely nothing. Construction is still going on. Majority of it is sitting in the buildings and all the advances that we’ve given to the parties so there is more of advances.
Percy Panthaki
Understood, understood. So what do we expect in terms of capex over the — I mean, the next three months as well as for FY ’26? The reason I’m asking this is that at the time of the IPO, basically, our impression was that you would be doing roughly brownfield and greenfield put together roughly about INR200 crore per year for the next three, four years.
Rahul Shah
Right. So we are planning this financial year with a total capex of around INR160 crores to INR175 crores. This will be primarily for setting up of the buildings at the 44 acre facility, other greenfield expansion projects and the regular modernization and the upgradation capex that we continue to do in our existing infrastructure. Like I said, you know, we believe the first building from the new 44 acre project should be ready. We should get the possession during the 3rd-quarter of FY ’26 and believe to begin commercial production from that building within 90 days from getting the possession.
So looking at those requirements, I think in the coming year, we should be again — our capex should be again close to INR202 crore INR225 crores. And obviously, the way it is planned is every three months from the time we get the first — the possession of the first building at the 44 acre, you will get possession of the next building and that three-odd months, 90-odd days we will utilize for installation.
Percy Panthaki
Understood. Understood. And in terms of the capacities that will come up over the next, let’s say, 12 to 18 months, which are the major products in which the capacities are expected to come up?
Rahul Shah
So we are looking at increasing our capacities across one scholastic stationery paper stationery as well in paper stationery during the 3rd-quarter of FY ’25 we increased one-line of the automatic exercise manufacturing exercise book manufacturing machine we are expected, we are expecting to increase some capacities in paper stationery as well, office supplies also and also to some extent in hobby and craft.
Percy Panthaki
Okay. Okay. Understood. Understood. Also, just wanted to understand in terms of this JV you did for the bags, what is the status there in terms of ramp-up, in terms of ARRs or in terms of any other update that you would like to give.
Rahul Shah
So the acquisition that we did was in a company called Skido Industries. Skido’s revenue from operations stood at about close to INR3 crores in 3rd-quarter of FY ’25, which is a sequential growth of about 56% with an EBITDA margin of close to about 13%. Currently close to 55% of the company’s sales happen to doms and balances to 3rd parties dogs basically utilises these bags for their kits and combination pack but right now, you know the company is already the first-line of products are already ready in the bags category, a very well-designed and highly value-added bags that we’ve come up with, they are in-production and we plan to soon launch it for our customers under the Toms brand during this back-to-school season. So during this quarter, the Toms branded bags would be launched in the market.
Percy Panthaki
Understood. And lastly on your direct outlet coverage, how much does it stand at currently and how much it has grown over the last 12 months.
Rahul Shah
So today you know, we focused on during our second call, we — second-quarter call, we said when the markets were a little bit of sluggish, we focused on expanding our distribution network a little. So today, we have about 140,000 retail outlets, which we are catering to directly. This represents an increase of about 15,000 plus retail outlets. I think end of last year we were close to 125,000, which is now increased to 140,000. Okay. The strategy there is like it was earlier, first try to maximize the throughput from the existing partners and only then look at expanding our universe.
Percy Panthaki
Sure, sure, got it. Okay that’s all from me. Thanks and all the best. Thanks.
Operator
Thank you. The next question is from Sneeha Talveja from Nuvama. Please go-ahead.
Sneha Talreja
Hi, good afternoon, sir, and congratulations on great numbers and thanks for the opportunity. Just two to three questions from my end. What was the margin this particular quarter?
Rahul Shah
The margin there in this particular quarter was about 10%. But like we said, this is typically one of the strongest quarters for the diaper business. So what happens is the sales are higher and there is a better fixed-cost absorption that happens. So this quarter usually is better in terms of margin also. But going-forward, the way the business has been shaping up and what inputs that we get from the UniClenn team, it should be close to a 7.5% to 8% sort of EBITDA margin business.
Sneha Talreja
Understood. That means our consolidated margins from 17.5% can actually go down because of those reasons.
Rahul Shah
It should be and that is why we always maintain that 17% 16% to 17% as the range. And we’ve always said that the impact of all these the acquisition plus the ESOPs and plus what happens is whenever we are in a capacity addition phase, you need to increase the manpower a little bit before the good start into commercial production. So as a result of the increase — slight increase in the manpower cost, ESOP accounting and the, we should be close to the 16% to 17% range in terms of EBITDA margin.
Sneha Talreja
Understood. Secondly, what I wanted to understand is where are we in terms of utilization rates at this point of time overall as a company, along with UniClan separately. UniClan, including the capacity addition that we’ve just taken place.
Rahul Shah
They are very difficult to talk about how much utilization because it’s sometimes really difficult to gauge the — you know, the output is in a different unit of measure, while the capacities are different and really at the utilization differs in terms of what type of product you are manufacturing. So difficult to say — give about how much utilization we are today. But we believe we have, like I mentioned earlier, there are timely capacity additions planned in such a way that at every period of time, we have some additional capacity coming in through the way of greenfield acquis expansion or in terms of modernization of our existing plant and machinery.
Sneha Talreja
So what I was trying to get is we are comfortable growing at 20% 25% on an overall company-level or despite operating at optimum utilization that we keep seeing. I mean have to say.
Rahul Shah
It’s always you know while there is always optimal capacity utilization, but at the same time there are new capacity additions coming in. So it’s like a continuous process.
Sneha Talreja
Understood. Lastly on, is the product out, we were supposed to launch it in Q4 of FY ’25. Is that launched? And if yes, how is the response we are receiving from the channel?
Rahul Shah
So, it is, you know, like I said, it’s already in-production, the packing material and all is on its way. So very soon will be launched in the market. Hopeful is at the right time for the back-to-school season. So in this quarter only it will be launched, which is the right time to launch as the back-to-school season is just about to start.
Sneha Talreja
Understood. That’s helpful. Thanks, thanks and all the best. Thank you, sir.
Operator
Thank you. Next question is from Jinesh Joshi from PL Capital. Please go-ahead.
Jinesh Joshi
Thanks for the opportunity. Sir, I have a question on our hygiene business. I think we have started exports in this quarter. So can you highlight which geographies are we targeting explicitly and what is the opportunity size here? Also in terms of margins, do they materially differ between exports and domestic markets? So yeah, just some update on that. And also given the fact that this will be a overseas of what should I say venture for us? Would it require creating a new network from scratch to your thoughts on that?
Rahul Shah
So, Girish, firstly, I’ll answer the second question you had in terms of network. The entire idea of partnering with UniClients was that in the short-term, we believe that we’ll be able to leverage our channel relationships with the and distributors. That is not restricted only to the Indian market, but in for exports as well. Like I said earlier, they’ve already started doing exports to Nepal, where one of our channel partners has become a for the products. Similarly, through our network, they have started some amount of exports to Middle-East.
And the idea there is to first start with the neighboring countries where DOM already has a strong network and then we’ll take it forward. And at the same time, in domestic market also, we are seeing the channel synergies coming out where some of our stockish have already been onboarded as channel partners for. And now as the business ramps-up, again there today when we invested in the company, they were present in about six states. Today they are at about seven to eight states.
We want to first completely do justice to the business in these states and only then try to expand our sales network to other states. So once that happens, plus if you think we’ve reached optimal capacity in terms of diapers, then we plan for new capacity addition there as well. So in terms of margin, Yinesh, like I said, this quarter is an exceptional — always has been the exceptional quarter for UniClen considering the higher sales this quarter, our EBITDA there was about 10%, but on a full-year basis, we believe EBITDA to be in the range of 7% to 8%.
Jinesh Joshi
It’s got that. Just wanted to — yeah, sorry, sorry, please go-ahead.
Rahul Shah
And in terms of difference in margins for in the domestic and the export market, nothing very material. The same philosophy that follows will be followed at UniClen where you know across it will be a very cost sheet sort of a driven approach depending upon what cost sheet gets developed and our targeted margin for UniClen, that’s how the product pricing will happen. So we will not see any significant difference in terms of margins in export and the domestic markets.
Jinesh Joshi
Got that. So just to summarize, at present, our presence is in Nepal and Middle-East and for the time-being, the focus will remain on domestic market correct?
Rahul Shah
Yes, yes. Absolutely. Sure. And as well as neighboring countries, where I talk about Nepal, Bangladesh, Sri Lanka, you know, Middle-East is also now a neighboring country only for yes, so that’s going to be the focus for us.
Jinesh Joshi
Sure. And sir, secondly, on the side, can you share some updates with respect to the current capacity and the utilization number? Also, what is the current contribution from the INR10 price point, some color on that. And secondly, I believe our incremental capacity on pencils was about to come on-board in 4Q. So we are like almost a month into the quarter. So has it already started any update on that?
Rahul Shah
So yes, the plant is under installation. Most of the machines have come in. You know, is a slightly longer manufacturing process where you need to first add capacities at the treatment and seasoning level. There the new plant has already come in-production. Our plan for you know, making utilities or pencils and finishing of pencils is expected to come soon. So like we said, capacity will — for pencils production from the new capacity should start rolling in from the current quarter and there would be continuous expansion in the next quarter as well.
Jinesh Joshi
Sure. On the PEN side, if you can share some update on the utilization number and the contribution from the INR10 price point?
Rahul Shah
So overall is the office supply segment, we continue to invest as third plant has already come in-production. We’ve increased capacity for markers and introduced our highlighters also. So like all our products, even in this segment, we continue to introduce new products, come up with differentiated offerings you know, in terms of differentiation in terms of price point, really difficult for us to say how much for me to say at this point of time how much are coming from a particular price segment. But in terms of pricing for us, our important customer is always been young kids and it’s been a school-driven consumption. So we’ve always believed having a very rationalized approach towards pricing, which ensures that our customers get value-for-money and at the same time, our margins are maintained. So for pens also, we are following the same sort of strategy and which is more cautious driven.
Jinesh Joshi
Sure. Sir, one last question from my side. I think in our paper stationery business, the growth was upwards of 50% in this quarter and you highlighted earlier that one-line got added. So is the growth led by capacity expansion or is there some element of seasonality over here? And also from here on, how should we look at the contribution of the people stationery business?
Rahul Shah
So, definitely there was a positive impact due to addition of the new line for the exercise goods manufacturing, a machine that we added, this came in-production around October 2025. Paper stationery definitely is a slightly seasonal business with the third and 4th-quarter being the strongest and Q2 being a slightly muted once all schools have. So yes, that also plays a role. And paper for us is a growth segment that we’ve been continuously focusing on. And even there, our product offering is very differentiated. We’ve had some amount of partnership also, you know, like with we’ve also got partnership with Warner Brothers with for certain comic characters which we using significantly for us paper, stationeries, book covers. So all these factors plus focus from the team is helping in the growth of this segment.
Jinesh Joshi
Sure, sir. Thank you. Thank you so much. Thanks.
Operator
Thank you. Before we take the next question, a request to participants to please limit your questions to two per participant. Should you have a follow-up question, we request you to rejoin the queue. The next question is from Abhishek from AB Capital. Please go-ahead.
Abhishek
Hello, am I audible?
Rahul Shah
Yes, loud and clear.
Abhishek
Yeah. So what will be the ROE trajectory going-forward?
Rahul Shah
So Abhishek, see the idea is simple to continue with the EBITDA margin in the range of about 16% to 17% with sort of a 3x on you know, a revenue generation on the investment we do. So from a ROE perspective, we continue to have the same ROE of close to — and see — and more the money that we keep utilizing in capex, this should increase. So our ROE, ROCE at a consolidated level should be around 23% to 25%.
Abhishek
Okay, okay. So the — given that the margins are lower in the diaper business, that will not affect us in the near-future.
Rahul Shah
So we — when we are talking about the consolidated margin of 16% to 17%, Abhishek, it is taking into consideration the unique diaper business at a lower-margin of 7% to 8%.
Abhishek
Okay, okay, okay. And any plans to raise any capital in the near-future.
Rahul Shah
We would really want to first utilize the funds that we raised from the IPO, get this a new plant you know up and running as soon as possible. So most of our energies are right now focused on the completion and expansion in the 45-acre project.
Abhishek
Okay. Thank you. Thank you.
Operator
Thank you. Next question is from Priyank Chanda from Valem Capital. Please go-ahead.
Priyank Chheda
Hi, I hope my voice is clear. Thank you, Rahul. My question is on — we have clearly seen revenue trajectory going up for office supply. So I believe we have increased our capacity of pens from, say, around two to — from 2 million pens per day-to 3 million pens a day. Is that number right and is that the right way to think of it? As well as if you can just reconfirm the pencil capacity, we are adding around 2.5 million pencils per day. Is that the number right?
Rahul Shah
Hi,. Yes. So office supplies as a segment has recorded a growth of about 133%. This is primarily due to increased capacities for pens, markers and introduction of highlighters. You know one of the new markers that we launched has received a good response from the market. So that has contributed to the success of the — to the growth of the office supply segment. In terms of the increase in capacities for pencils, like we said earlier, right now, our capacity is close to 5.5 million pencils a day and we soon expect to ramp it up to 2.5 million wooden tensils by 2.5 million wooden tensils per day.
Priyank Chheda
Perfect. So this INR90 crore capex or the asset addition that you have done is to do with the office supply, which includes and markers, while the pencil capacity is yet to come from this quarter. Is that right? And then you were supposed to add certain capacities in crayons and scratch pens also, would you be able to help me with that numbers from where to where we have gone.
Rahul Shah
So honestly, we’ve not added capacity in our scholastic at material range significantly you know, in terms of pencils, like I said, our like pencil, I have three key stages of production. One is the treatment stage, other is the raw pencil making stage and the last is the finishing stage. Our plan for the raw pencil — for the treatment is already started up and running, so that’s already been capitalized to some amount of increase in capitalized asset that you see is because of cash plant plus for other products, you know, we are upgrading of certain existing capacities in the segment, some amount of additional capacities are also coming up for the fine art segment. We’ll see all this coming in-production very soon.
Priyank Chheda
Perfect. My second question is on this unique land. We would have sold around, say, 10 crore diapers in the current quarter. And if you can help me with a distribution outlook, wherein how much of that would be overlapped with DOM’s distribution network or it would be completely new distribution channel which has and you will look to expand over there.
Rahul Shah
Unfortunately, I will not have that data on-hand today you know not really I don’t have that data to answer this question at this moment.
Priyank Chheda
No problem, I can. I’ll connect you offline. On — just last question on the new category or a new segment of toys, which we were looking out for now for a toddler segment, say, less than a three-year segment, we were planning to us enter into this segment. Any strategic thoughts on that?
Rahul Shah
So we’ve already entered the TOT segment you know there is an entire range which has come up called as DOMS TOTS you know in that we’ve already launched finger paint and these so that’s already been launched. Again, you know, it just a launch that has happened, so these sort of products which are like-new to the market coming up for the first time, it takes a little bit of a longer time for the acceptance to build-up and the product to reach March level of consumers. And so it’s early days there, but the products have already been launched.
Priyank Chheda
Perfect. And on the Phase-2 of this expansion of this new greenfield project, which was supposed to happen in two phases, now what is the total capex that we are planning to incur, which includes Phase-1, Phase-2, all put together when all of the project is ready up and running say in next two years or 2.5 years?
Rahul Shah
So saying this entire project, you know, including the land, which we’ve already purchased and expenses that we’ve already done, this entire project would entail an investment of close to INR900 crores to INR1,000 crores. We’ve already purchased the land. A lot of advances have been given to our, you know construction partners who are constructing the building there plus work for in terms of leveling, in terms of making roads in terms of electrification, making the utilities that has also simultaneously started. All put together, like I said, this project would be close to INR900 crores of investment and eventually will house somewhere between 1.8 million to 2 million square feet of built-up area.
Priyank Chheda
And would this be also equal to just a clarification on this, would this be also 1.8 to 2 times asset turnover at the full utilization?
Rahul Shah
So eventually after about two to three years, we always target to have about times sort of six gross revenue from the investment that we do in the fixed asset. But considering it’s greenfield in nature, it takes a little time to reach there to about three times sort of a number but at full potential once all is ready, the target is to always try to achieve close to 3x in terms of a sector.
Operator
Thank you. The next question is from Aniruddha Joshi from ICICI Securities. Please go-ahead.
Aniruddha Joshi
Yeah. Sir, all my — in terms of the new co-branding products that we have done that ISRO and also the first one of others. So if you can share a bit more on these aspects and what are the terms of these rates and how is the response to the products, etc? So if you can share a bit more info on that.
Rahul Shah
So a little bit, these arrangements are like pure royalty short-off arrangement that we get into with the owners of these brands, with Islo, it is not a direct arrangement, but with somebody who already has the arrangement, we are just manufacturing isro branded products and giving to them and they’ve been selling it in the market. See, for all the you know new launches that the company is doing, we are seeing a good response from our consumers even not only for the Warner Brother or the ISRO cover design, but the new range of paper stationary products that we’ve come up, the CAR series, abstract series, major series, all of them are seeing an overwhelming response from the consumers.
They are liking the entire grid that we’ve made-for the new paper stationary page. I think it’s more to do with the increasing popularity of the dogs brand rather than you know, definitely you know, having co-branded product some amount of wow factor, but a lot of it is also to do with the rising popularity of the DOM’s brand and acceptance of the DOM branded paper stationery product.
Aniruddha Joshi
Okay. Surely. Understood. That’s helpful. Second question, a bit broader on exports. So as far as like there are some restrictions coming on some countries from USA. So do you see that opening up a window of exports for us means do you see any additional inquiries for exporting the product to their countries, etc. Because I guess that’s currently a long-term positive growth tailwind for us. So any — any update on these things?
Rahul Shah
So exports and Anirji, both at the intergroup within network as well as to third-party continues to represent a great opportunity for us. While the ongoing geopolitical tension has impacted our exports to a certain extent. We believe things to improve from here both because of certain restrictions to some other countries as well as you know, are these the new distribution arrangement that we are going to soon enter with FILA Group companies across the globe wherever they have their present, this should do well from an export potential perspective. But having said that, the domestic market continues to be — remain a focus area. Our capacities continue to remain a little constrained. But once we have new capacities coming in, I am sure we will be able to leverage the export potential a little better.
Aniruddha Joshi
Okay, sure. Understood. Last question before I hand it over to the operator again? But see this product has a immense potential, may not have any really great potential in e-commerce per se, but has got immense potential in quick commerce. So what will be the strategy of DOMs looking at over, let’s say, next two to three years to penetrate significantly in quick commerce channel?
Rahul Shah
Yeah, that’s it from my side. Thank you. Sir,, you know, definitely quick commerce, e-commerce you know we are present there, our business in that segment is also growing but our presence there is restricted only to giving con convenience to our consumers but our but our heart and soul remains with our general trade channel partners who have been one of the strongest reasons for our growth, our brand acceptance at the consumer level and going for — and they are the ones who actually keep the entire wide range of products and ensure that these products reach our consumer very well.
So that continues to remain the focus. Our network expansion is going on in a very thoughtful manner strategically where we are trying to maximize the throughput before entering into new retail space. But having said that, in e-commerce as well as quick commerce, our presence is increasing with the sole purpose of ensuring consumers have that convenience. They are not. You know, that’s our main focus. Thank you. Thank you, sir.
Operator
Thank you. Next question is from Nedik from NV Alpha Fund. Please go-ahead.
Naitik Mutha
Hi, sir. Thanks for the opportunity. Sir, my question is, you mentioned about your new distribution agreement with FILA for their international channels. So I just wanted to know what kind of opportunity this could be for us.
Rahul Shah
As a group is today present in close to more than 100 countries globally in some of the geographies you know like South Africa, Australia, for that matter, even US, Europe, they have a strong network there and these are untapped market for top stranded product. You know while we do some amount of sale-in certain African countries and certain and in Australia in the doms brand, but in a lot of these geographies where resin, you know the presence of doms as a product, as a brand in those countries is not there.
So it represents a good opportunity. We’ll open many international geographies for us. So we are really excited about this partnership with and FILA Group companies. But as and when we keep getting capacity additions, that is how we keep targeting opening markets. So we would not want to be in a position that we do some amount of export to — but to many countries and are not able to fulfill their follow-up requirement that really in a way kills brand. Everybody invests time, efforts, resources in-building a brand.
But then if you cannot do a follow-up sale, then consumers forget about it. So it while it represents a great opportunity but we’ll go country-by-country slowly by an entity, entity, soon we plan to start in the first country probably will start would be some Latin-American car only one.
Naitik Mutha
Got it, sir. Sir, my second question is, can you quantify the exports with and the exports of — under our own brand-name for the quarter and for nine months?
Rahul Shah
Sorry, I couldn’t get that.
Naitik Mutha
So could you quantify the exports we did to FILA and the exports we did under our own brand-name for the quarter and for nine months?
Rahul Shah
So for the quarter, we did about INR37 odd crores was our sales to FILA and our exports under our own brand was around close to INR27 crores. And for the nine-month period, this amount was for was close to INR120 crores, while owned exports was about INR82.5 odd crores.
Naitik Mutha
Okay, sir, got it. That’s it from my side. Thank you so much. Thanks. Thanks.
Operator
Thank you. Next question is from Sharan, who is an individual investor. Please go-ahead.
Unidentified Participant
Hi, thank you for the opportunity and while waiting all my questions are answered. I just want to — it my — hi, but unfortunately cannot hear you well. Are you able to hear me now? Yes, better. Yeah, sure. Okay. Thanks for the opportunity. While waiting all my questions are already answered. So just want to know on a broader view, like since you are coming up with a bag and you are coming up with a toys, you already have stationary products, do you have any plans to make a strategic partnership with the school chains which are operated across India to make a strategic long-term partnership and shell — sell your all the products together like for example, like Poda, kits and all such kind of chain schools which are there across India, sell all your bag stationary attempts and hygiene products and toys together for long-term stable partnership. Do you have any such plans?
Rahul Shah
At the company-level, we don’t actively pursue such partnerships, but we always encourage our channel partners, our channel partners across India, not only partner with you know, such as educational institutions, but also participate in a lot of you know our government tenders as well and we always authorize and do the business with them that ensures our products teach our consumers at the same time, our channel keeps supporting us.
Unidentified Participant
Okay. So you don’t directly get involved in such partnerships through the distribution.
Rahul Shah
We encouraged through our channel partners.
Unidentified Participant
Okay, okay. And sir, in the bag part, school bags, I have seen in the nearby shops, it’s currently coming as a kit. Do you have plans to produce a separate bags as well like generic bags with variety of designs and sizes.
Rahul Shah
Yes, Sharanji, Skido Industries are subsidiary where we have 51 percentage stake they are already develop a range of school bags. So this — our target there is also going to be the scholastic children only. These are not like the laptop bag, but these are more like school bags are the first-line of product is already designed ready in terms — they are right now in commercial production. And soon it will be launched in the market as a separate tag as a separate product right in time for the upcoming back-to-school season and it’s a differentiated high value-added range. I’m sure our consumers hope that consumers should like them.
Unidentified Participant
Sure, sir. Yeah, appreciate that. And sir, the recent new government? Yeah, I’m very sorry to interrupt, but we have several other participants. One follow-up and sir, yeah, if you allow me. So the Government of India pushing for Make in India for toys segment and there is a lot of buzzword on that and the import substitution. Can you throw some light on like contribution towards that like your toy segment, how it is going to contribute to that? And are there any benefits from Government of India like PLI and as such.
Rahul Shah
So I — so our participation in the toy segment is through an associate company called Capjoy where we own 30%. We are seeing good traction in sales in Clapjoy. You know, during the 3rd-quarter, revenues were close to INR2 crore rupees which represents a growth of about 35% year-on-year. The products which Clabjoy sells are now co-branded with. So we are seeing traction in this segment.
But honestly, we have not yet you know have our learnings in this business segment but with a lot of you know, government initiatives plus I think during the recent budget also there were some announcement which we are actually not yet gone through in detail. We should. We will be doing this subsequently we have good plans for this segment, but as of now, not something which is significant.
Operator
Thank you. The next question is from Manish Goyal from ThinkWise Wealth Managers. Please go-ahead.
Manish Goyal
Yeah, thank you so much. Couple of questions. First, congratulations, on very good set of numbers. Sir, on full capacity, how much revenue can UniCan — UniPlan can generate for the — for FY ’26 or maybe if you can give us what is the full-scale revenue potential? And you did mention that we aspire for double-digit margin. So can we achieve it for full FY ’26 or you probably see that double-digit margin in the second-half of FY ’26? That was my first question.
Second question was on like domestic sales, excluding exports, if you see a domestic in nine months has grown 30%. But if we exclude UniClan, then it looks like 22% growth. But within that, probably if we look at your product-wise, now the scholastic stationery and scholastic art material has probably grown probably mid to-single digit. So how should we read into this and what can we expect? Was it a capacity constraint at your end, or if you can just throw some light?
Third, like on overall, how was the volume growth and price growth like probably the growth what we saw 22% in domestic, how much was probably a price growth in-between that? And can you clarify on the capex number for entire FY ’25 and ’26? You did mention per time. Yeah. Thank you so much.
Rahul Shah
Thank you. In terms of the first part of your question was with respect to and the business plan, honestly, sir, this is the first time we’ll be doing an exercise with the management of UniClen to make our business plan for the next year. That is something which is ongoing in-process and our business plan for the coming year should be ready, you know before the end of this financial year. But with the current capacity that has been put up and the utilization level that ideally we can reach the peak level of utilization we can reach with the current brand.
The sales potential is close to between around INR250 crores to INR300 odd crores. But having said that, when we reach there and how we’ll go about it, it’s something we’ll have more clarity probably during our next conversation, our next call. In terms of revenue growth in the nine months, like you said, excluding UniClenn, our domestic growth was about 22%. Yes Yes, because UniClen is predominantly a domestic business.
So when it gets consolidated, the proportion of domestic sales increases. In our core segments, excluding UniClen, Scholastic stationery business grew by almost 12.5%. This was primarily on account of increasing in some of the key products under this category. In terms of scholastic art our — there was a marginal increase of 2.4%. Sir, you should always also look at the growth that we’ve done in kits and combination pack.
If you look at the growth in kits and combination pack, you will see a growth of almost 10% plus percent in revenue. You know they now contribute close to 9% of our total revenue. So this segment basically the product here gets manufactured using mainly products from scholastic stationery, from scholastic art material. So it doesn’t directly sit as sales in these categories, these two categories, but it is contributed towards a sales of kit and combination pack.
So therefore, you’ll see a little less growth in scholastic stationery and scholastic ice, but that those products are actually sold as a kit and combo pack. So that’s where some amount of growth is there. But having said that, this scholastic ad especially, we’ve not added capacities, significant capacities in the last few quarters, that is something which we plan to do going-forward. And as always, our key driver of our growth has been the volume — increasing volume, which comes from increasing capacities, where we’ve increased capacities in the past or the capacity increase is ongoing, that is where you see higher-volume and overall growth coming in. I forgot the last part of no.
Manish Goyal
So-so so Rahul, like maybe was there any probably price hikes or price increase which would have helped us for a stronger revenue growth? It could be a function of your — you would have taken price hikes, one or maybe you have a better revenue mix. If you can share your perspective? And my last question was on the capex front, so just to clarify for FY ’25 and ’26.
Rahul Shah
Yeah. So in terms of price increase, there were not substantial price increases over product — any specific product or any product categories. In certain cases, there were — which is again comes from the cost sheet approach we have where you see the raw-material or any cost significantly increasing, that time you need to increase the prices where you feel that there is a need, we increase our prices either to the customer or to the direct consumer through increasing the MRP.
But yes, change in the sales mix does result in higher ASPs and though we are not seeing significant change towards premiumization, but yes, there are certain new products which are slightly better in terms of MRPs being added. So there is a slight positive mix coming from the change in the sales mix. But largely the growth is coming from the volume growth. And in terms of capex, like we said, we believe we end this year with a capex of close to about INR160 crores to INR175 crores. And in the coming year, our target capex would be close to INR200 crores to INR225 crores.
Manish Goyal
Right, sir. Thank you so much. Thank you. Thank you.
Operator
Thank you. The next question is from Aradna Jain from B&K Securities. Please go-ahead.
Aradhana Jain
Hi, thank you for the opportunity. While all my questions have been answered, just one question on your brand-wise revenue growth. So if you could throw some light on how have Amar is and 6 or how are they performing? And in the others category that you bifurcate, we have Amaril 6 and now we also have, right? So like if you could just tell us how — which our brand has contributed, how much? So Arana basically, you know and Amaris are our nic baby brand for niche products is used for fine art materials which we manufacture and sell, it’s sold as Zamaris. The other brand 6 is for our adhesive range where we have a range of products for scholastic use by schoolchildren as liquid gum and blue and with the white gum. These are comparatively very small right now, but have decent potential. Other brand is C3, you know, which does for the quarter, we did a business of close to INR10 plus crores. This is our — you know our economical range of product specially targeted towards the rural market where we have multiple SKUs in terms of polymer pencils, sharpener so it’s a separate. It’s branded as C3 only, manufactured by but branded as C3, while the other brands are under the dog umbrella. And in terms of, whatever sales you see from the baby hygiene segment that’s all from you know from UniClen whereby you know the OEM business is about 15% to 16% and rest all is under their own brand, which is now co-branded with — which is. Got it. Thank you. That is helpful. Thanks. Thanks a lot.
Operator
Thank you very much. That was the last question in queue. I would now like to hand the conference back to the management team for closing comments.
Rahul Shah
Thank you. I would like to thank once again all of you for joining us on this call today. We hope we have been able to answer most of your queries. Please feel free-to reach-out to our Investor Relations team for any clarification or further queries or feedback. Thank you once again. Wish you all a good day going-forward. Thanks.
Operator
Thank you very much. On behalf of ICICI Securities, that concludes the conference. Thank you for joining us. Ladies and gentlemen, you may now disconnect your lines.