Indo Count Industries Limited has released the transcript of its investors' conference call held on June 1, 2026, for Q4 and FY26 results. Filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the transcript details the company's financial performance and strategic outlook. The call was moderated with participation from senior leadership, including Mr. Mohit Jain, Executive Vice Chairman; Mr. K. Muralidharan, Group Chief Financial Officer; and Mr. Manish Bhatia, Chief Financial Officer.

Management Highlights and Strategic Milestones

Opening the call, Mohit Jain highlighted that Indo Count was honoured with the Gold Trophy for the highest exports of bed sheets in the cotton made-ups category for the sixth consecutive year. The award was received from Finance Minister Ms. Nirmala Sitharaman at a ceremony held on May 25. Management outlined three key priorities for FY26: protecting market share, scaling utility bedding and U.S. brands, and growing non-U.S. revenues.

Despite a challenging macroeconomic environment marked by U.S. tariff volatility, the company retained all customers with no order cancellations. The core business witnessed a low-teen decline during the year, though business stability remained intact. A significant operational milestone was the commencement of the North Carolina greenfield facility, the company's first U.S. manufacturing unit for utility bedding, bringing total U.S. utility bedding facilities to three and increasing annual pillow manufacturing capacity from 13 million to 31 million pillows, along with 1.5 million quilts per annum.

On the brand front, the company relaunched the 180-year-old Wamsutta brand and signed Tommy Hilfiger as a licensed brand partner for utility bedding, taking the total licensed brand portfolio to six. New business revenues for FY26 stood at ₹792 crores, with Q4 FY26 contributing ₹270 crores — equivalent to approximately USD 30 million. Non-U.S. core business revenues contributed approximately 30% of total core business revenues in FY26.

Q4 and Full-Year FY26 Financial Performance

Manish Bhatia provided a detailed financial overview, noting that FY26 is not directly comparable to FY25 due to the absence of U.S. tariff impact in the base period and the new business commencing only from the second half of FY25. The following tables summarise the key financial metrics:

Q4 FY26 Performance

Full-Year FY26 vs FY25 Performance

Balance Sheet and Capital Allocation

The reduction in net debt by approximately ₹200 crores year-on-year was a notable positive. The planned capex of ₹250 crores will be funded through 75% internal accruals and 25% debt. Annual long-term debt repayment stands at approximately ₹85 crores to ₹90 crores.

FY27 Outlook and Guidance

Management expressed confidence in FY27 being a defining year, targeting consolidated revenues of approximately ₹5,500 crores — implying revenue growth of over 30% compared to FY26. Of this, approximately ₹4,000 crores is expected from the core business and approximately ₹1,500 crores from the new business. Volume guidance for FY27 is set in the range of 105 million to 110 million meters, compared to 94 million meters in FY26.

Management also noted that the S&P Global ESG score improved substantially to 78 from 45 over the last two years, placing Indo Count in the top 3 percentile globally within the textile, apparel and luxury goods industry, well above the industry average of 35. The company reiterated its longer-term objective of doubling revenues by 2028 over the FY25 base, targeting a run rate of approximately ₹8,000 crores.

Investor Q&A: Key Takeaways

During the Q&A session, management addressed several investor queries. On raw materials, approximately 30% of cotton is imported — primarily Egyptian and American long-staple varieties — with the balance sourced domestically. The recent government notification waiving import duty on cotton was seen as a positive development that levels the playing field for Indian manufacturers. Management indicated that elevated input costs across cotton, polyester, dyes, energy, and packaging are being addressed through customer repricing, expected to be completed within a quarter.

On the new business revenue split, management clarified that approximately two-thirds of new business revenue comes from utility bedding and one-third from brands. The four licensed brands — Fieldcrest, Waverly, GAIAM, and Wamsutta — are expected to grow from approximately ₹250 crores to ₹500 crores. Branded business overall accounts for 20% of total company revenues. The utility bedding segment is expected to reach EBITDA positive in FY27, eliminating the 150–200 basis point drag that weighed on margins in prior years. Long-term margin targets for utility bedding and brand businesses are set at approximately 15% and 100–200 basis points above 15%, respectively.

The transcript is available on the company's website at: https://www.indocount.com/images/investor/Transcript-of-Q4-FY26-Investors%E2%80%99-Conference-Call-Held-on-June-1-2026.pdf . For further inquiries, stakeholders may contact Strategic Growth Advisors Pvt. Ltd., the company's investor relations advisors.

Indo Count Industries has corrected the commissioning timeline for its spinning facility expansion in Kolhapur, Maharashtra, to Q2 of FY 2028. The company issued a corrigendum on June 1, 2026, to rectify an inadvertent clerical error in its previous intimation dated May 30, 2026, which had stated the project would be operational by Q2 of FY 2027. All other details of the disclosure remain unchanged.

The Board of Directors had previously sanctioned a capital expenditure of approximately ₹85 crore to expand and modernise the spinning facilities. The expansion project targets the company's spinning facility located in Alte, Kolhapur, increasing the installed capacity from 70,000 spindles to 94,000 spindles. This addition of 24,000 spindles is estimated to require an investment of ₹60 crore.

In addition to the capacity expansion, the company will modernise its existing spinning mill situated at Gokul Shirgaon, Kolhapur. This modernisation initiative involves an outlay of approximately ₹25 crore. The primary objective of this upgrade is to enhance operational efficiency and productivity at the plant.

The combined capital expenditure of ₹85 crore will be funded through a mix of debt and internal accruals. The investment is intended to balance the facility towards more value-added products. Currently, the existing capacity utilization at the Alte facility stands at 98%, indicating high operational efficiency prior to the expansion.

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