Indo Count Industries Limited held its Q1 FY27 earnings conference call on 13th August, 2026 at 11:00 a.m. IST. The call was conducted by management including Mr. Mohit Jain (Executive Vice Chairman), Mr. K. Muralidharan (Group Chief Financial Officer), Mr. Manish Bhatia (Chief Financial Officer), and Strategic Growth Advisors (Investor Relations Advisor).

Financial Performance Highlights

  • Volume: Q1 FY27 sales volume stood at 23 million meters, representing 12% quarter-on-quarter growth from 20.5 million meters in Q4 FY26, but declined 3% year-on-year due to container availability constraints from West Asia conflict.
  • Total Income: Recorded INR1,224 crores in Q1 FY27, up 13% sequentially from INR1,088 crores in Q4 FY26 and 27% year-on-year growth.
  • EBITDA: Reached INR160 crores in Q1 FY27, showing 38% quarter-on-quarter growth from INR116 crores in Q4 FY26 and 34% year-on-year growth.
  • EBITDA Margin: Improved to 13.1% from 10.7% in Q4 FY26 (241 bps improvement) and from 12.4% in Q1 FY26 (74 bps improvement).
  • PAT: Stood at INR63 crores in Q1 FY27, representing 2.5x sequential increase from INR24 crores in Q4 FY26 and 62% year-on-year growth.
  • PAT Margin: Expanded to 5.2% from 2.2% in Q4 FY26 (294 bps improvement).
  • EPS: Q1 FY27 EPS stood at INR3.19 per share.

Business Segment Performance

Core Business (Bed Linen):

  • Revenue: INR837 crores in Q1 FY27, up 4% sequentially
  • Realization: Approximately INR357 per meter, up 1.5% YoY
  • Geographic Mix: 70% from U.S. markets, 30% from non-U.S. markets
  • Volume Guidance: Maintained 105-110 million meters for FY27
  • Revenue Guidance: Approximately INR4,000 crores for FY27

New Business (Utility Bedding & U.S. Brand Business):

  • Revenue: INR387 crores in Q1 FY27
  • Composition: Two-thirds from utility bedding manufacturing, one-third from brands
  • Brand Portfolio: Wamsutta, Fieldcrest, Waverly, Gaiam
  • FY27 Target: INR1,500 crores revenue
  • 2028 Ambition: USD275 million revenue target

Operational Updates

U.S. Manufacturing Operations:

  • Utilization levels maintained at 60-65% despite January 2026 greenfield facility addition in North Carolina
  • Facilities include established plants in Ohio and Arizona, plus new North Carolina facility

Bhilad Plant Incident:

  • Manufacturing facility in Bhilad, Gujarat was temporarily impacted by heavy rainfall and flooding from 23rd July 2026
  • Partially resumed operations from 12th August 2026 with normalization expected in phased manner
  • Insurance claim process initiated with preliminary survey conducted by insurance-appointed surveyors
  • Company stated it is "adequately insured to cover the losses" including property, inventory, and loss of profit

Margin Guidance and Expectations

  • Core Business: Expected to achieve 15% EBITDA margins long-term
  • Utility Bedding: Expected to achieve 15% EBITDA margins at full scale
  • Brand Business: Expected to achieve 100-200 bps better than 15% margins at scale
  • Consolidated: Targeting 13% EBITDA margins for FY27

Market Developments and Strategy

Geographic Expansion:

  • Non-U.S. markets expected to grow 20%+ in FY27
  • Benefiting from U.K. FTA and expected EU FTA creating duty-free access
  • Existing duty-free access to Australia, Japan, New Zealand, and Middle East

Sustainability Recognition:

  • Received three prestigious awards from Confederation of Indian Textile Industry during Bharat Tex 2026
  • Focus on energy efficiency, responsible sourcing, and ESG integration

Tariff Refund Clarification

  • Management clarified that no tariff refund was recorded in Q1 FY27
  • 80% of exports are on FOB basis where tariff is borne by importer
  • No material financial benefit expected from potential U.S. tariff refunds
  • Discussions with customers ongoing, with greater clarity expected by year-end

Product Mix and Pricing

  • Q1 product mix impacted realizations, but yearly realizations expected to remain broadly intact
  • Price increase conversations with customers concluded, with impacts expected from Q2 onwards
  • Raw material price increases post-February conflict being passed through to customers

Capacity and Utilization

  • New business achieved nearly 60% of USD275 million 2028 target on annualized Q1 basis
  • Utility bedding business targeting 60-65% utilization for FY27
  • Greenfield North Carolina facility commenced operations in January 2026

Investor Relations

  • Transcript filed pursuant to Regulation 30 of SEBI (LODR) Regulations, 2015
  • Available on company website and stock exchange platforms