Sales Volume
24.8M meters
Flat QoQ
Volume held steady despite full quarter of 50% US tariff, indicating resilient demand.
INDOCOUNT
Other
10 Feb 2026
Indo Count Industries Limited — Q3 FY26
Indo Count delivered a stable Q3 FY26 with total income of ₹1,774 crore, broadly flat sequentially, despite a full quarter of 50% US tariffs.
✓ Verified against BSE filing
2-Minute Summary
✦ AI-Generated from Full Transcript
Indo Count delivered a stable Q3 FY26 with total income of ₹1,774 crore, broadly flat sequentially, despite a full quarter of 50% US tariffs. Core business volumes held at 24.8 million meters as the company absorbed tariff costs and offered customer discounts, compressing EBITDA margin to 9.5% (adjusted 10.4%). New business revenue doubled YoY to ₹210 crore, now 20% of topline, driven by utility bedding and branded portfolio. PAT fell to ₹24 crore due to margin pressure and ₹9.2 crore labor code impact. Management expects margin recovery from Q1 FY27 as tariff discounts reverse and new business incubation costs (150-200bps) end by March 2026. The EU FTA and US trade deal provide structural tailwinds, but near-term demand visibility remains low. Key risk: US consumer spending may stay muted as retail prices rise, delaying volume recovery.
Key Numbers
New Business Revenue
₹210 crore
+16% QoQ
New business (utility bedding + brands) grew 16% sequentially, now 20% of total revenue.
New Business Annualized Run Rate
$100M
+100% YoY
New business achieved $100M annualized run rate, doubling from prior year.
US Pillow Capacity
31M pillows
+18M from new facility
Third US facility (18M pillows) commissioned Jan 2026, total capacity now 31M pillows.
Management Guidance
New business revenue target of $275 million by FY28
Management reaffirmed the target for new business (utility bedding + brands) to reach $275 million by FY28, with current run rate at $100 million.
Management guidance revenueIncubation cost drag to end by Q4 FY26
The 150-200 bps margin impact from new business incubation is expected to be fully absorbed by end of March 2026.
Management guidance marginsCapex of ₹125-150 crore for FY27
Management guided for maintenance and balancing capex of ₹125-150 crore in FY27, with no major new investments planned.
Management guidance capexRevenue doubling by FY28
Long-term aspiration to double revenue by FY28, supported by core business recovery, new business scale-up, and trade deal tailwinds.
Management guidance growthKey Risks
US consumer demand may remain muted
Retail prices have increased due to tariffs, and consumer discretionary spending could stay subdued for 2-3 quarters, delaying volume recovery.
medium · management_commentaryEU FTA implementation delays
The EU FTA requires ratification by 27 member states, which may take 2-4 quarters, pushing back revenue benefits.
medium · management_commentaryBangladesh's duty-free access to US could erode India's competitiveness
Bangladesh received duty-free access using US cotton; if fine print allows broader benefits, it may pressure Indian exporters.
high · analyst_questionMargin recovery may be slower than expected
Management declined to quantify tariff discount reversals or provide a timeline for returning to 15-16% EBITDA margins, citing dynamic negotiations.
medium · data_observationNotable Quotes
Tariff uncertainty has meaningfully eased. With these trade developments, India is moving towards a more competitive position relative to other exporting countries.
Our objective is to get back to 15-16% EBITDA margin. We've been consistently saying that's our goal.
The new business contributed 20% to our total topline in Q3 FY26. On a sequential basis, it grew by 16% to 210 crores, achieving an annualized run rate near of nearly $100 million.
Frequently Asked Questions
What was Indo Count Industries's revenue in Q3 FY26?
Indo Count Industries reported revenue of ₹1,063 Cr in Q3 FY26, representing a — change compared to the same quarter last year.
What guidance did Indo Count Industries management give for FY27?
New business revenue target of $275 million by FY28: Management reaffirmed the target for new business (utility bedding + brands) to reach $275 million by FY28, with current run rate at $100 million. Incubation cost drag to end by Q4 FY26: The 150-200 bps margin impact from new business incubation is expected to be fully absorbed by end of March 2026. Capex of ₹125-150 crore for FY27: Management guided for maintenance and balancing capex of ₹125-150 crore in FY27, with no major new investments planned. Revenue doubling by FY28: Long-term aspiration to double revenue by FY28, supported by core business recovery, new business scale-up, and trade deal tailwinds.
What are the key risks for Indo Count Industries in FY27?
Key risks include US consumer demand may remain muted — Retail prices have increased due to tariffs, and consumer discretionary spending could stay subdued for 2-3 quarters, delaying volume recovery.; EU FTA implementation delays — The EU FTA requires ratification by 27 member states, which may take 2-4 quarters, pushing back revenue benefits.; Bangladesh's duty-free access to US could erode India's competitiveness — Bangladesh received duty-free access using US cotton; if fine print allows broader benefits, it may pressure Indian exporters.; Margin recovery may be slower than expected — Management declined to quantify tariff discount reversals or provide a timeline for returning to 15-16% EBITDA margins, citing dynamic negotiations..
Did Indo Count Industries meet its previous quarter's guidance?
Scorecard data is being built as historical quarters are processed.
Where can I read the full Indo Count Industries Q3 FY26 concall transcript?
The full earnings conference call transcript or source release is available on the linked source material. This page provides an AI-generated summary with filing verification status shown on the financial stats.