Indo Count Industries Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for the financial year 2025-26 to BSE Limited and the National Stock Exchange of India Limited, in compliance with Regulation 34 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The report is prepared on a standalone basis and covers the period from April 1, 2025 to March 31, 2026. The submission was signed by Satnam Saini, Company Secretary & Sr. GM-Legal.

Financial and Operational Overview

The company reported a turnover of ₹3,098.37 Cr and a net worth of ₹2,316.48 Cr for FY 2025-26, with CSR provisions applicable under Section 135 of the Companies Act, 2013. Exports constituted 96.09% of total turnover, reflecting the company's strong global presence. Indo Count operates 4 plants and 6 offices nationally, with no international facilities, and serves customers across 20+ states domestically and 50+ countries internationally.

The company's primary business activity is manufacturing home textile products under NIC Code 13924, encompassing bed sheets, mattress pads, comforters, duvet covers, pillows, and related items, accounting for 100% of its turnover. Indo Count caters to B2B clients including mass merchants, e-commerce and DTC platforms, hospitality suppliers, and private-label brand partners. Its in-house brands Boutique Living and Layers serve the domestic consumer market, while licensed brands such as Fieldcrest, Waverly, Beautyrest, and Tommy Hilfiger support its international presence.

Workforce and Diversity

As at the end of FY 2025-26, Indo Count reported a total workforce comprising 1,217 employees and 5,782 workers. Female representation stood at approximately 11% of total employees and 18% of total workers.

The Board of Directors comprises 8 members, of whom 1 (12.50%) is female. Among Key Management Personnel, there are 5 members with no female representation. The company also employs 6 differently abled employees and 17 differently abled workers. Turnover rates for permanent employees in FY 2025-26 stood at 17.45% for males and 26.80% for females, with an overall rate of 18.50%.

Sustainability and Environmental Initiatives

Indo Count has identified five material sustainability issues: GHG emissions (risk), energy management (opportunity), sustainable sourcing (opportunity), health and safety (risk), and business ethics and integrity (risk). The company reported that 39.8% of inputs were sourced sustainably in FY 2025-26, up from 24% in the previous financial year, with a stated commitment to achieving 100% sustainable sourcing of raw materials and packaging by 2035.

Key environmental initiatives undertaken during the reporting period include:

• Energy Efficiency: Installation of Variable Frequency Drives (VFDs), turbine performance optimization, condensate recovery, and energy-efficient steam trap technologies
• Renewable Energy: Continued deployment of solar power infrastructure and biogas utilization as part of the company's decarbonization strategy
• Water Conservation: Hot water recovery, condensate recovery enhancement, quenching water reuse, and wastewater treatment initiatives
• Sustainable Chemical Management: Replacement of conventional petrochemical dyes with natural dyes; more than 95% of input dyes and chemicals comply with ZDHC requirements
• Circular Materials: Expanded use of recycled cotton, organic cotton, lyocell, and other responsible fibres

The company's Gokul and Bhilad units have been identified as designated consumers under the Government of India's Performance, Achieve and Trade (PAT) Scheme. Recycled or reused input material as a percentage of total material used in production stood at 9.76% in FY 2025-26, compared to 11.03% in FY 2024-25. The company is working towards Zero Liquid Discharge (ZLD) by 2030 and holds ISO 45001:2018 certification for its occupational health and safety management system.

Governance, Ethics, and CSR

Indo Count reported no material fines, penalties, or non-monetary punishments during FY 2025-26. The number of days of accounts payables was 29 in FY 2025-26, compared to 31 in FY 2024-25. The company maintains a zero-tolerance policy on bribery and corruption, supported by a formal Anti-Bribery and Anti-Corruption Policy. No complaints related to conflicts of interest involving directors or KMPs were received during the year.

The company is affiliated with 5 industry chambers and associations, including TEXPROCIL, CITI, ASSOCHAM, FICCI, and BITRA. During the year, the company engaged with government authorities and industry bodies on policy matters including capital subsidies, power cost reduction, wage subsidies, and measures to address US import tariff impacts on Maharashtra's textile sector.

CSR beneficiaries across key programme areas for FY 2025-26 are detailed below:

The company reported NIL data breaches, NIL product recalls (voluntary or forced), and NIL consumer complaints pending resolution during FY 2025-26. Wellbeing expenditure as a percentage of total revenue increased to 0.06% in FY 2025-26 from 0.03% in FY 2024-25, reflecting a continued focus on employee and worker welfare across its operations.

Indo Count Industries reported a consolidated net profit after tax (PAT) of ₹126.68 crore for FY26, a sharp decline from ₹250 crore in the previous year, as severe US tariff pressures eroded margins. Despite the profitability hit, the company maintained resilient top-line growth, with consolidated total income rising marginally to ₹4,210.85 crore from ₹4,190.90 crore in FY25. The Board of Directors, meeting on May 30, 2026, recommended a final dividend of ₹1.50 per equity share, subject to shareholder approval at the upcoming Annual General Meeting (AGM).

The profit contraction was primarily driven by US tariffs on Indian textile exports, which escalated to 50% before moderating back to 10% during the year. Management absorbed a significant portion of this tariff burden to protect market share and customer relationships, resulting in under-absorption of fixed costs. Additionally, initial incubation costs for new business initiatives weighed on operating margins. Consolidated EBITDA fell to ₹461.47 crore from ₹576.74 crore, while standalone EBITDA declined to ₹378.79 crore from ₹513.52 crore.

Financial Performance Overview

The company’s financial results reflect a strategic trade-off between volume protection and margin preservation. While revenue remained stable, the impact of geopolitical issues and new business incubation costs led to lower operating leverage.

Operational Highlights and Strategic Shifts

Indo Count achieved a sales volume of 94.1 million meters during FY26. A key positive development was the rapid scaling of new businesses, particularly utility bedding and the US brand business. Revenue from these new segments grew steadily from 13% in Q1FY26 to over 24% in Q4FY26, demonstrating strong market acceptance. The company relaunched the heritage brand Wamsutta via a Direct-to-Consumer platform in July 2025 and signed a licensing agreement with Tommy Hilfiger, bringing its total licensed brands to six.

Domestically, the company expanded its retail footprint through its brands Boutique Living and Layers, adding 700 new counters in a single quarter to reach over 2,000 touchpoints. The domestic business now contributes approximately 2.25% of total revenue, with plans to scale it into a meaningful contributor over the next three to five years.

Governance and Shareholder Actions

The 37th AGM is scheduled for August 25, 2026, to be held via Video Conferencing. Key agenda items include the re-appointment of Executive Vice-Chairman Mohit Jain, who retires by rotation, and the re-appointment of Independent Director Ambika Sharma for a five-year term.

Crucially, shareholders will vote on special resolutions to waive the recovery of excess managerial remuneration paid to Executive Chairman Anil Kumar Jain and Executive Vice-Chairman Mohit Jain. The excess amounts are ₹2.11 crore for Anil Kumar Jain and ₹85.61 lakh for Mohit Jain, arising from inadequate profits due to the tariff shock. The waivers are sought under Section 197(10) of the Companies Act, 2013.

What the Numbers Show

The divergence between stable revenue and declining profitability highlights the company’s strategic prioritization of market share retention over short-term margin maximization. By absorbing tariff costs, Indo Count preserved its customer base, positioning itself to benefit immediately when tariffs normalized. The significant contribution from new businesses (utility bedding and US brands) suggests a successful diversification strategy that reduces reliance on traditional export volumes, potentially improving resilience against future trade policy shocks.