Indo Count expands brands, grows volumes despite tariffs

Indo Count Industries reported a 7% quarter-on-quarter volume growth in Q2 FY26, reaching 25.2 million meters, with total income rising 12% to Rs. 1,082 crores. Despite a 50% tariff imposition on India in late August 2025, the company maintained market share through sequential volume growth. However, EBITDA margins saw a decline from 12.3% in Q1 FY26 to 11.4% in Q2 FY26, with PAT for Q2 FY26 at Rs. 39 crores. The company anticipates continued margin pressure until tariff structures stabilize.

The company is strategically expanding its utility bedding and US branded segments, which now contribute 17% of revenues, up 40% quarter-on-quarter, reaching an approximate run rate of $85 million per annum. Indo Count announced a licensing agreement with Tommy Hilfiger, making it their sixth licensed brand. The new North Carolina manufacturing facility, a $15 million investment, is expected to be operational by late Q3 FY26 or early Q4 FY26, with an annual production capacity of 18 million pillows, projected to generate $85 to $90 million in annual revenues at optimal capacity. The company expects to achieve $175 million in annual revenues from utility bedding by 2028.

Indo Count aims for EBITDA margins of 15% to 16% for its utility bedding business and 17% to 18% for its brand segment. The company also noted a reduction in debt by Rs. 175 crores in H1 FY26, bringing the net debt to equity ratio to Rs. 0.34X by September 2025.