Key Announcements & Management Commentary

Export Achievement

Indo Count received the Gold Trophy for highest exports of bed sheets in cotton made-ups category for the sixth consecutive year. The award was presented by Finance Minister Nirmala Sitharaman on 25th May 2026.

FY26 Performance Overview

Despite challenging macroeconomic environment and US tariff impacts, the company delivered resilient performance:

  • Maintained revenue at similar levels to FY25
  • Core business witnessed low-teen decline due to US tariff situation
  • No customer losses or order cancellations during the year
  • Business stability remained intact with strong customer engagement

Strategic Priorities Execution

1. Market Share Protection
  • Absorbed part of tariff impact and Russia oil-related penalty to protect customer relationships
  • Stable wallet share with existing customers maintained
  • Operational reliability reinforced
2. Scaling Utility Bedding & US Brands
  • Successfully commenced operations of North Carolina facility (first US greenfield manufacturing)
  • Total utility bedding manufacturing facilities in US increased to 3
  • Pillow manufacturing capacity more than doubled from 13 million to 31 million pillows annually
  • Quilt capacity at 1.5 million units per annum
  • Existing two US facilities operating at ~65% utilization
  • Greenfield facility ramping up well
  • Target of 60-65% utilization across all three facilities achievable in FY27
  • Signed Tommy Hilfiger as licensed brand partner, bringing total licensed brands to 6
  • Relaunched 180-year-old American heritage brand Wamsutta in US market
  • Expanded product portfolio through sourcing-led strategy (curtains, towels, bath rugs, blankets)
  • New business revenues for FY26: ₹792 crores
  • New business segment revenue: ₹270 crores (~USD 30 million)
  • Annualized run rate at nearly 40% of targeted $275 million new business revenue by 2028
3. Scaling Non-US Revenues
  • Non-US core business revenues contributed ~30% of total core business revenues in FY26
  • Multiple FTAs in place across several countries
  • UK and EU FTAs in pipeline
  • Expect non-US revenues to grow by 20% in FY27
  • India business (Boutique Clothing and Layers brands) contributed ~2.25% of revenues
  • Products available at nearly 2,000 touch points in India

ESG Achievement

  • S&P Global ESG score increased substantially to 78 from 45 over last 2 years
  • Well above industry average of 35
  • Places company among top 3 percentile globally within textile, apparel and luxury goods industry

Financial Performance

Q4 FY26 Highlights

  • Sales volume: 20.5 million meters
  • Total income: ₹1,088 crores (vs ₹1,074 crores in Q3 FY26)
  • EBITDA: ₹116 crores (14% QoQ growth from ₹102 crores)
  • EBITDA margin: 10.7% (vs 9.5% in Q3 FY26 and 9.3% in Q4 FY25)
  • PAT: ₹24 crores (similar to Q3 FY26, 15% YoY growth from ₹21 crores)
  • Growth drivers: Higher contribution from new businesses, favorable exchange rate, normalization of down trading scenario

FY26 Full Year Highlights

  • Sales volume: 94.1 million meters (vs 106.4 million meters in FY25)
  • Total income: ₹4,211 crores (vs ₹4,191 crores in FY25)
  • EBITDA: ₹461 crores (vs ₹577 crores in FY25)
  • EBITDA margin: 11% (vs 13.8% in FY25)
  • PAT: ₹127 crores (vs ₹250 crores in FY25)
  • EPS: ₹6.4 per share
  • Margin pressure due to incubation costs of new businesses, lower fixed cost absorption, and partial tariff sharing

Balance Sheet & Capital Management

  • Net debt as of 31st March 2026: ₹760 crores (reduced by ~₹200 crores from ₹960 crores last year)
  • Long-term debt: ₹425 crores
  • Working capital days: 121 days (stable vs 132 days last year)
  • Final dividend recommended: ₹1.50 per equity share (face value ₹2 each), subject to shareholder approval
  • Planned capex: ₹250 crores over next 12-18 months, funded through mix of internal accruals and debt

FY27 Outlook & Guidance

Volume Guidance

  • Expected volumes: 105-110 million meters (vs 94 million meters in FY26)

Revenue Guidance

  • Consolidated revenue target: ~₹5,500 crores (over 30% growth vs FY26)
  • Incremental revenue addition: ~₹1,300 crores (record for company history)
  • Core business expected to contribute ~₹4,000 crores
  • New business expected to contribute ~₹1,500 crores (nearly doubling from FY26 ₹792 crores)

Margin Guidance

  • Target EBITDA margin: ~13%
  • Drivers: Disciplined execution, improving demand conditions, normalization of US trade environment, revenue diversification
  • Higher volume throughput on stable cost base expected to support margin expansion

Growth Trajectory

  • Company on track to deliver record year in FY27
  • Phase of converting investments into growth momentum
  • Continued progress toward stated objective of doubling revenues by 2028 over FY25 base

Q&A Session Key Insights

Margin Drivers

  • Core business expected to deliver ~15% margins
  • New business turning EBITDA positive in FY27 (from negative margin drag in FY26)
  • Raw material cost increases (cotton, polyester, energy, packaging) being addressed through customer repricing
  • Repricing expected to complete within a quarter

US Demand Environment

  • No material impact observed from inflationary pressure
  • Retailers increased prices and consumers accepted current retail prices
  • No inventory restocking occurring - sales flow at normalized levels
  • Trade environment improving with US tariff overhang settling down

Business Segmentation

  • New business revenue split: 2/3 from utility bedding, 1/3 from brands
  • Utility bedding target margin: 15%
  • Brand business target margin: 16-17% (100-200 bps above core)
  • Overall branded business represents 20% of total revenue

Manufacturing & Sourcing

  • Imported cotton represents 30% of raw materials (specialized high-end Egyptian and American cotton)
  • No significant change expected in import mix despite domestic cotton price increases
  • Government waiver of import duty on cotton benefits competitiveness

Financial Metrics

  • Tax rate: 25% (expected to remain stable)
  • Working capital: ~120 days maintained for incremental revenue
  • Interest profile: No major changes expected, though some floating rate loans may be affected by global rate increases

Growth Timeline Clarification

  • Revenue doubling target refers to reaching ₹8,000 crores run rate by calendar year 2028, not necessarily FY28 financial year