Indo Count Industries Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Indo Count Industries Ltd filed with BSE on 08 Jun 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Indo Count reported flat total income for FY26 versus FY25 at roughly Rs 4,211 crore, with EBITDA margin declining to 11% from 13.8% due to tariff-related cost absorption and new business incubation costs. Management said the core business declined in the low-teens during the year due to U.S. tariff volatility, while new business revenue more than doubled to Rs 792 crore. For FY27, management guided to consolidated revenue of approximately Rs 5,500 crore and an EBITDA margin of around 13%, citing improving U.S. demand conditions and normalization of the tariff environment.
Numbers mentioned
Total income: INR1,088 crores (Q4 FY26)
p. 6
“Total income for Q4 FY26 stood at INR1,088 crores compared to INR1,074 crores in Q3 FY26”
Manish Bhatia, page 6 of the filed PDF · View the filing
EBITDA: INR116 crores (Q4 FY26)
p. 6
“EBITDA for Q4 FY26 stood at INR116 crores compared to INR102 crores in Q3 FY26, a growth of 14% quarter-on-quarter”
Manish Bhatia, page 6 of the filed PDF · View the filing
EBITDA margin: 10.7% (Q4 FY26)
p. 6
“EBITDA margin for the quarter was 10.7% versus 9.5% in Q3 FY26 and 9.3% in Q4 FY25.”
Manish Bhatia, page 6 of the filed PDF · View the filing
PAT: INR24 crores (Q4 FY26)
p. 6
“PAT for Q4 FY26 stood at INR24 crores, which is similar level to Q3 FY26 and growth of 15% versus Q4 FY25 PAT of INR21 crores.”
Manish Bhatia, page 6 of the filed PDF · View the filing
Sales volume: 94.1 million meters (FY26)
p. 6
“Sales volume for FY26 stood at 94.1 million meters compared to 106.4 million meters due to volatile demand scenario pertaining to U.S. tariff.”
Manish Bhatia, page 6 of the filed PDF · View the filing
Total income: INR4,211 crores (FY26)
p. 6
“Total income for FY26 stood at INR4,211 crores compared to INR4,191 crores in FY25, a steady performance despite of temporary weakness in the core business since our new business more than doubled as compared to FY25.”
Manish Bhatia, page 6 of the filed PDF · View the filing
EBITDA: INR461 crores (FY26)
p. 6
“EBITDA for FY26 stood at INR461 crores compared to INR577 crores in FY25 due to incubation cost of new businesses, lower absorption of fixed costs and partly sharing of tariff on a case-to-case basis.”
Manish Bhatia, page 6 of the filed PDF · View the filing
EBITDA margin: 11% (FY26)
p. 6
“EBITDA margin for the year stood at 11% versus 13.8% in FY25.”
Manish Bhatia, page 6 of the filed PDF · View the filing
PAT: INR127 crores (FY26)
p. 6
“PAT for FY26 stood at INR127 crores compared to INR250 crores in FY25.”
Manish Bhatia, page 6 of the filed PDF · View the filing
EPS: INR6.4 per share (FY26)
p. 6
“EPS for FY26 stood at INR6.4 per share.”
Manish Bhatia, page 6 of the filed PDF · View the filing
Net debt: INR760 crores (as on 31st March 2026)
p. 7
“Net debt as on 31st March 2026 stood at INR760 crores as compared to INR960 crores same period last year, a reduction of around INR200 crores.”
Manish Bhatia, page 7 of the filed PDF · View the filing
Long-term debt: INR425 crores (as on 31st March 2026)
p. 7
“Long-term debt as on 31st March 2026 stood at INR425 crores.”
Manish Bhatia, page 7 of the filed PDF · View the filing
Working capital days: 121 days (FY26)
p. 7
“Our working capital days remained stable at 121 days versus last year of 132 days.”
Manish Bhatia, page 7 of the filed PDF · View the filing
New business revenue: INR792 crores (FY26)
p. 4
“New business revenues for FY26 stood at INR792 crores, supported by consistent sequential growth throughout the year.”
Mohit Jain, page 4 of the filed PDF · View the filing
Final dividend: INR1.50 per equity share (FY26)
p. 7
“The Board of Directors has recommended final dividend of INR1.50 per equity share for the face value of INR2 each, subject to shareholders' approval.”
Manish Bhatia, page 7 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Consolidated revenue — approximately INR5,500 crores · FY27
stated firmly by Mohit Jain
p. 5
“On the revenue front, we are targeting consolidated revenues of approximately INR5,500 crores, implying revenue growth of over 30% in FY27 compared to FY26.”
Mohit Jain, page 5 of the filed PDF · View the filing
EBITDA margin — around 13% · FY27
stated firmly by Mohit Jain
p. 5
“On the margin front, we are targeting EBITDA margin of around 13%, driven by disciplined execution, improving demand conditions, normalization of U.S. trade environment and revenue diversification opportunities arriving from a more level playing field in markets such as the U.K. and the EU, supported by long-standing customer relationships.”
Mohit Jain, page 5 of the filed PDF · View the filing
Volume — 105 million to 110 million meters · FY27
stated firmly by Mohit Jain
p. 5
“We expect volumes to be in the range of 105 million to 110 million meters compared to 94 million meters achieved in FY26.”
Mohit Jain, page 5 of the filed PDF · View the filing
Non-U.S. revenue growth — 20% · FY27
stated conditionally by Mohit Jain
p. 4
“with multiple FTAs now in place across several countries and the U.K. and EU in the pipeline, we expect stronger traction from these markets going forward and anticipate non-U.S. revenues to grow by 20% in FY27.”
Mohit Jain, page 4 of the filed PDF · View the filing
Utility bedding facility utilization — 60%, 65% · FY27
stated firmly by Mohit Jain
p. 4
“We are witnessing encouraging demand and believe that overall utilization levels of 60%, 65% across all 3 facilities is achievable going forward in FY27.”
Mohit Jain, page 4 of the filed PDF · View the filing
New business revenue — approximately USD275 million · by 2028
stated as an aspiration by Mohit Jain
p. 4
“On an annualized basis, taking Q4 FY26 as the base quarter, we are operating at nearly 40% of our targeted new business revenue ambition of approximately USD275 million by 2028.”
Mohit Jain, page 4 of the filed PDF · View the filing
Total revenue — double revenues over FY25 base · by 2028
stated as an aspiration by Mohit Jain
p. 5
“continued progress towards our stated objective of doubling our revenues by 2028 over the FY25 base.”
Mohit Jain, page 5 of the filed PDF · View the filing
Capex outlay — INR250 crores · next 12 to 18 months
stated firmly by Manish Bhatia
p. 7
“We have planned capex outlay of INR250 crores to be completed in the next 12 to 18 months, and this will be funded through a mix of internal accruals and debt.”
Manish Bhatia, page 7 of the filed PDF · View the filing
Core business EBITDA margin — around 15%
stated as an aspiration by Mohit Jain
p. 9
“I mean, so from our core business, we expect to do around 15%.”
Mohit Jain, page 9 of the filed PDF · View the filing
Utility bedding margin — 15% margin
stated as an aspiration by Mohit Jain
p. 13
“So, our expectation in the utility bedding segment is to do a 15% margin.”
Mohit Jain, page 13 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said all moving parts were factored into the 13% guidance, repricing with customers happens with a lag, and long-term debt repayment of Rs 85-90 crore per year continues alongside capex funded 75% by accruals and 25% by debt.
Answered by Mohit Jain
Asked by Pritesh Chheda: How will offsetting positives (lower tariff, higher INR) and negatives (higher cotton price) play out on margins over the next few quarters, and how does this affect debt versus capex?
p. 7
“So, I think on margins, all the moving parts, as you just mentioned, that's how we've guided 13%.”
Mohit Jain, page 7 of the filed PDF · View the filing
Management said U.S. retailers have raised prices, consumers have accepted them, and retailers are willing to buy inventory as goods are selling.
Answered by Mohit Jain
Asked by Aman Agarwal: What gives confidence in the projected volume/revenue growth for FY27 given inflation and possible U.S. slowdown risk?
p. 8
“We have seen that in the United States, which is our largest market, all retail customers have increased their retail prices and consumers have now accepted the current retail prices.”
Mohit Jain, page 8 of the filed PDF · View the filing
Management said at 60-65% utilization of the expanded 31 million pillow capacity, the business is EBITDA positive, and the previous margin drag will end from Q1 onwards.
Answered by Mohit Jain
Asked by Aman Agarwal: Have the utility bedding facilities reached EBITDA breakeven, including the new greenfield facility?
p. 8
“So, we are looking at doing 60%, 65% utilization in the coming year, which is a substantial jump from last year because the last year, which is FY26, we only had 13 million units of pillow manufacturing specifically.”
Mohit Jain, page 8 of the filed PDF · View the filing
Management said the core business is targeted at around 15% margin, while new business margin contribution is only starting to turn positive rather than being a drag as before.
Answered by Mohit Jain
Asked by Aman Agarwal: Why is the company guiding to 13% EBITDA margin rather than the 15-16% margins achieved historically?
p. 9
“But -- so in the guidance that we've given, we have kept our core business at roughly 15%. And the new business yet -- earlier it was a drag on the -- it was a negative margin, but now it's turning to be EBITDA positive.”
Mohit Jain, page 9 of the filed PDF · View the filing
Management declined to comment on quarterly margin trajectory.
Answered by Mohit Jain
Asked by Aman Agarwal: Should Q4 FY27 margins be higher than the 13% full-year guidance as new business margins improve?
p. 9
“We would not be -- I mean, very difficult to comment on that at this point of time.”
Mohit Jain, page 9 of the filed PDF · View the filing
Management reiterated the 2028 timeframe rather than FY27-28 specifically, maintaining the guidance despite the FY25-26 slowdown.
Answered by Mohit Jain
Asked by Aman Agarwal: Is the FY28 target of doubling FY25 revenue to about Rs 8,000 crore achievable given the implied 40-45% growth from FY27 to FY28?
p. 9
“So, we've been clear from day 1, if you see we are seeing 2028, we'll get to that run rate.”
Mohit Jain, page 9 of the filed PDF · View the filing
Management explained that customers order 60 days in advance and were factoring in a 50% tariff until it dropped to 10% in mid-to-late February, causing the earlier volume drop.
Answered by Mohit Jain
Asked by Vansh Solanki: Why did Q4 volumes drop sharply to around 20 million meters despite the U.S. tariff being present in prior quarters too?
p. 10
“So, Vansh, when we get orders 60 days at least in advance, roughly, so all our customers that were placing orders were keeping 50% U.S. tariff in mind.”
Mohit Jain, page 10 of the filed PDF · View the filing
Management confirmed the guidance includes other income, consistent with how numbers are presented.
Answered by Mohit Jain
Asked by Vansh Solanki: Is the 13% EBITDA margin guidance with or without other income?
p. 10
“With other income. All our margin guidance and EBITDA, just the way we are presenting our numbers.”
Mohit Jain, page 10 of the filed PDF · View the filing
Management said there is no restocking happening; retailers raised prices and customers are buying at those prices, with sales flow at normalized levels.
Answered by Mohit Jain
Asked by Riken Gopani: Is the encouraging core business growth guidance driven by U.S. inventory restocking?
p. 11
“No. So, there's no restocking that is happening. So, retailers have increased their prices, as I mentioned, and customers are buying at that price.”
Mohit Jain, page 11 of the filed PDF · View the filing
Management said about 30% of cotton is imported (Egyptian and American), 70% is domestic, and the notification puts India on a level playing field for raw material pricing.
Answered by Manish Bhatia
Asked by Bhavika Singhvi: What is the sourcing mix of domestic versus imported cotton, and how does the import duty waiver benefit Indo Count?
p. 12
“Bhavika, so for Indo Count, we mentioned before also around 30% of our raw material, which is cotton gets imported.”
Manish Bhatia, page 12 of the filed PDF · View the filing
Management said utility bedding is two-thirds and brands one-third of new business, targeting 15% margin in utility bedding and 1-2% higher in brands.
Answered by Mohit Jain
Asked by Shirish Pardeshi: What is the revenue split between utility bedding and brand business within the new business segment, and what margins are expected?
p. 13
“It's 2/3, 1/3. 2/3 is coming from utility bedding of the new business and 1/3 is coming from brands.”
Mohit Jain, page 13 of the filed PDF · View the filing
Management attributed the increase to forex gains and favourable product mix, and said product mix is normalizing after prior down-trading.
Answered by Mohit Jain
Asked by Palash Kawale: Are the higher realizations seen in Q4 sustainable, and what drove them?
p. 14
“So, what we've seen in quarter 4 is we've seen some forex gains come in due to currency movement as well as product mix in Q4 has been slightly more on the favourable side.”
Mohit Jain, page 14 of the filed PDF · View the filing
Management said repricing should happen within a quarter, aided by existing raw material inventory in the supply chain.
Answered by Mohit Jain
Asked by Raman: How long will it take to pass on elevated raw material prices, and will there be margin pressure in Q1?
p. 15
“So, it should take us within a quarter, we should be able to pass them on. And we also have raw material at the back and the supply chain inventory.”
Mohit Jain, page 15 of the filed PDF · View the filing
Management clarified the doubling target is for 2028, not FY27-28, and reiterated the calendar year 2028 run-rate expectation.
Answered by Mohit Jain
Asked by Hemant Soni: How confident is management in doubling revenues, and is this expected within FY26-27?
p. 16
“Hemant, what we've said is that we'll double our revenue by 2028. So somewhere in 2028, we'll reach to the INR8,000 crores roughly run rate. It's not '27, '28 to be clear.”
Mohit Jain, page 16 of the filed PDF · View the filing
Risks flagged
Rising input costs across raw materials including cotton, cotton yarn, coal, gas and energy
p. 7
“in the last 30 to 60 days, we've seen every single raw material components, whether it's coal, gas, energy, raw material like cotton, cotton yarn, everything has gone up.”
Mohit Jain, page 7 of the filed PDF · View the filing
Tariff-driven order volatility from U.S. customers
p. 10
“all our customers that were placing orders were keeping 50% U.S. tariff in mind. So, keeping 50% for India. That's where we saw a drop in the business and the volatility.”
Mohit Jain, page 10 of the filed PDF · View the filing
Broad-based increases in input costs including polyester yarns, fibre, cotton, dyes, chemicals, oil, gas and packaging material
p. 11
“We would not be able to give you any specific number. But as we are all aware, globally, there's not a single input cost that hasn't gone up, whether it's polyester yarns, polyester fibre, cotton, cotton yarns, dyes and chemicals, oil, gas.”
Mohit Jain, page 11 of the filed PDF · View the filing
Competitive disadvantage from disproportionate U.S. tariff rates versus other countries
p. 11
“How do you compete when your tariff is 50% and your other competitors at 20%, right?”
Mohit Jain, page 11 of the filed PDF · View the filing
Potential impact from floating rate loans if global interest rates rise
p. 15
“though with -- globally, if interest rate goes up, there are certain loans which are linked with the floating rate that might have some impact.”
Manish Bhatia, page 15 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.