Results filed 4 November 2026 · Market cap ₹10,841 crore · PE 44.5
GrowthGuidance raisedTranscript read
Revenue
+57.5%
on a year ago
EBITDA
+124.8%
on a year ago
Profit to shareholders
+237.9%
on a year ago
EBITDA margin
13.9%
+2.1 pts on last quarter
Indo Count delivered strong Q2 FY27 top-line growth of 57.5% YoY to Rs 1,673.0 crore with net profit surging 238.5% YoY to Rs 132.0 crore. Operating performance was aided by the ramp-up of US utility bedding operations to over 65% utilization and expansion of the Wamsutta brand into US retail. Based on H1 momentum, management stated it is poised to exceed its full-year FY27 revenue target of Rs 5,500 crore and EBITDA margin target of 13%.
Source: Indo Count Industries Limited’s filing to NSE, 4 November 2026. Operating profit is revenue less every expense except interest, so it leaves out other income and exceptional items. n.m.: not meaningful, because the earlier figure was zero or negative, or the latest one is a loss.
What stood out
Record quarterly financial performance driven by strong new business scale-up and market share gainsSourceTotal income for Q2 FY27 reached Rs 1,699 crore (+57% YoY) and EBITDA rose to Rs 259 crore with new businesses contributing Rs 502 crore or ~30% of revenue (Concall Transcript, Page 2-3).
Lowest-ever net debt level achieved alongside improved return ratiosSourceNet debt dropped to Rs 518 crore with net debt-to-equity at 0.2x; annualized ROCE reached 21.4% and ROE reached 15.3% (Investor Presentation, Page 4, 12).
Operational disruption at Bhilad unit due to floods, offset by insurance claim accountingSourceRecognized inventory loss of Rs 45.02 crore net of salvage along with an equivalent insurance claim as an exceptional item in P&L, with Rs 14.99 crore interim payment approved post quarter-end (Concall Transcript, Page 3).
Guidance
Metric
Guidance
Period
Full-Year Total IncomeSourceConcall Transcript Page 3-4, 10
Expected to exceed the original target of ~Rs 5,500 crore
Aspire to double revenue to Rs 8,000 crore from FY25 base (with $275 million from Brands & Utility)
CY28
Management indicated that based on strong H1 execution, FY27 revenue and EBITDA margin will surpass the targets established at the beginning of the year.
Tailwinds
Significant expansion of utility bedding and branded segmentsSourceNew businesses generated quarterly revenue of Rs 502 crore (~30% of total income) and all three US utility bedding plants exceeded 65% utilization (Concall Transcript, Page 3-4).
Improved realizations and product mixSourceEBITDA margin reached 15.3% in Q2 due to execution of higher value orders and operational efficiencies (Concall Transcript, Page 2, 9).
Expanding non-US export traction following UK FTA implementationSourceNon-US core business is growing at 20% with strong inquiries post UK FTA implementation in July (Concall Transcript, Page 8, 10).
Headwinds
Rising input prices of cotton and yarnSourceCotton and raw material prices have been rising, requiring 4 to 5 months of inventory buffer and lagged price pass-throughs to customers (Concall Transcript, Page 5).
Natural disruption from rainfall and flooding at Bhilad unitSourceFacility temporarily disrupted, resulting in gross inventory loss of Rs 45.02 crore net of salvage (Concall Transcript, Page 3).
Working capital cash outflow compared to previous yearSourceWorking capital changes resulted in an outflow of Rs 11 crore in H1 FY27 versus an inflow of Rs 139 crore in H1 FY26 (Investor Presentation, Page 13).
New businesses and products
new geography · Underway
Expansion of Wamsutta Brand beyond D2C into broader US retail channels
Expected benefit
Deeper retail penetration and enhanced brand reach to achieve $100 million revenue by CY28 across USA Brand Business
Risks
Retail adoption, competitive positioning, and consumer demand elasticity in the US market
Operational downtime and inventory loss due to flooding at BhiladSourceRecognized Rs 45.02 crore inventory loss as an exceptional item, cushioned by a matching insurance claim pending final settlement (Concall Transcript, Page 3).
Working capital requirement absorptionSourceOperating cash flow saw a Rs 11 crore drag from working capital changes in H1 FY27 versus an inflow of Rs 139 crore in H1 FY26, as inventories expanded to Rs 1,425 crore from Rs 1,251 crore in March 2026 (Investor Presentation, Page 12-13).
How the call went
Management provided clear operational context regarding capacity utilization, strategic growth plans in the US, and revised upward tone on FY27 guidance, while deflecting requests for granular cost-inflation bridges.
Specific or vague
Management provided detailed metrics on segment splits (70/30 core vs new), capacity utilization (>65% for US plants), and capex phase-outs, although refused to provide a precise price/currency/freight cost bridge.
Candour
Directly acknowledged that new business EBITDA margins are currently in lower double digits compared to 15% in core business, and clarified that Rs 250 crore capex will be spread over 12-18 months rather than fully in FY27.
The hard questions
Analysts probed into gross margin compression, sustainability of realization gains, whether US demand truly recovered to FY25 peaks, and exact cost inflation bridges.
What analysts pressed on
Input cost inflation in cotton and timing of pass-throughs to end clients
Underlying reasons for the drop in gross margin despite EBITDA margin expansion
Pace and execution schedule of the remaining Rs 210 crore capex
Margin gap between the newly ramped US utility/brand business and the legacy core linen business
Answers that sidestepped
Management declined to quantify the exact bridge of price hike, currency, freight, and yarn cost impact on H1 numbers (Concall Transcript, Page 12).
Numbers against the story
Management highlighted consolidated Total Income of Rs 1,699 crore and presentation EBITDA of Rs 259 crore (15.3% margin), whereas core operational reported revenue from sales stood at Rs 1,673.0 crore and reported EBITDA stood at Rs 233.0 crore (13.93% margin). The narrative heavily emphasizes margin expansion and outperforming full-year guidance, while analysts pointed out that gross margins had softened quarter-on-quarter due to product mix and rising cotton input costs.
Figures: the company’s results filing with NSE, linked under the table.
Notes written by gemini-3.8-flash from the documents above on 14 November 2026. They summarise what the company said and can contain mistakes: check the source passage before relying on a point. Not investment advice.