Indo Count Industries Limited held its Q2 & H1 FY27 earnings conference call on 5th November 2026 at 2:00 PM IST. The management, including Executive Vice Chairman Mr. Mohit Jain, Group CFO Mr. K. Muralidharan, and CFO Mr. Manish Bhatia, presented the company's financial performance and business updates.

Financial Performance

Q2 FY27 Results:

  • Total income stood at ₹1,699 crores compared to ₹1,082 crores in Q2 FY26, registering 57% YoY growth
  • EBITDA more than doubled to ₹259 crores from ₹123 crores in Q2 FY26
  • EBITDA margins expanded to 15.3%, well above full-year guidance of 13%
  • PAT grew 2.5x YoY to ₹132 crores from ₹39 crores

H1 FY27 Results:

  • Total income stood at ₹2,923 crores compared to ₹2,049 crores in H1 FY26, registering 42% growth
  • EBITDA grew 73% to ₹420 crores from ₹243 crores in H1 FY26
  • EBITDA margin expanded 250 basis points to 14.4%
  • PAT stood at ₹195 crores compared to ₹78 crores, showing 150% growth

Operational Highlights

  • Achieved volume of 51 million meters in H1, approximately 49% of full-year guidance of 105-110 million meters
  • Core business H1 revenue of ₹2,033 crores achieved approximately 50% of FY27 target of ₹4,000 crores
  • New businesses generated quarterly revenue of approximately ₹502 crores, contributing 30% to total income
  • New businesses H1 revenue of ₹890 crores achieved nearly 60% of FY27 target of approximately ₹1,500 crores
  • All three utility bedding facilities in U.S. operating at utilization level of over 65%

Business Updates

Core Business:

  • Performance driven by market share gains, increased wallet share, and strong branded business momentum
  • Product mix improvement contributed to higher realizations
  • Non-U.S. core business represents approximately 30% of core business
  • Expect non-U.S. revenues to grow by over 20% in FY27

New Businesses:

  • Expanded into utility bedding, branded businesses, and other home textile categories
  • Brand Wamsutta expanded beyond direct-to-consumer platform into broader U.S. retail markets
  • New business mix maintained at two-thirds utility and one-third branded business
  • EBITDA margins for new businesses are in lower double digits, expected to reach core business level of 15% at full capacity utilization

Geographic Expansion:

  • U.K. FTA implemented in July 2026, generating increased customer inquiries
  • E.U. FTA yet to be implemented
  • Target to change core business geographic mix from current 70%/30% (U.S./non-U.S) to 60%/40%

Bhilad Flood Claim

  • Bhilad manufacturing facility in Gujarat was temporarily impacted by unprecedented rainfall and flooding
  • All assets and business interruption losses covered under comprehensive insurance policy
  • Insurance company acknowledged claim and approved interim payment of ₹14.99 crores after quarter end
  • Recognized inventory loss of ₹45.02 crores, net of salvage, with equivalent insurance claim as exceptional item

Balance Sheet & Returns

  • Net debt declined to ₹518 crores as of September 2026, lowest ever level
  • Cash and cash equivalents increased to ₹315 crores compared to ₹114 crores at March 2026 end
  • Net debt to equity at healthy 0.2x
  • Annualized ROCE stood at 21.4%
  • ROE was 15.3%
  • Working capital cycle improved from March, with number of days reduced by approximately three weeks

Guidance & Outlook

FY27 Guidance:

  • Revenue guidance: ₹5,500 crores (H1 achievement: 53%)
  • Volume guidance: 105-110 million meters (H1 achievement: 49%)
  • EBITDA margin guidance: 13% (H1 achievement: 14.4%)
  • Management expects to exceed full-year guidance on both top line and EBITDA

Long-term Targets:

  • Target to double revenue from FY25 (₹4,000 crores) to ₹8,000 crores by CY28
  • No additional growth capex required to achieve CY28 target
  • Expect to reach full capacity utilization of utility business by CY28
  • Branded business target of $100 million by CY28

Capex Plans

  • Capex guidance of ₹250 crores over 12-18 months
  • H1 FY27 capex: ₹40 crores
  • Major projects include effluent treatment and spinning capacity
  • Spinning project expected to be completed mostly in current year
  • Effluent treatment project may spill over to next year

Raw Material & Pricing

  • Maintain inventory of 4-5 months for cotton and cotton-related products
  • Buffer inventory provides cushion against raw material price increases
  • Pricing adjustments passed to customers with 1-2 quarter lag
  • No expected pressure on margins from input cost increases
  • Most business conducted on FOB or CIF basis, minimizing freight cost impact

Order Book & Demand Environment

  • Healthy order book position
  • Business environment expected to remain normal post U.S. midterm elections
  • Strong momentum across both existing customer wallet share growth and new customer additions