Indo Count Industries , a leading textile manufacturer, has reported a resilient performance in Q2 FY26, demonstrating growth despite facing significant headwinds from US tariffs. The company's strategic moves in brand expansion and market diversification are showing promising results.

Q2 FY26 Financial Highlights

Indo Count Industries posted a robust quarter-on-quarter growth:

The company's volume growth of 7% quarter-on-quarter to 25.20 million meters is particularly noteworthy, given the challenging tariff environment.

Navigating Tariff Challenges

Indo Count is facing headwinds from a 50% tariff imposed on Indian imports to the US in late August 2025, including an additional 25% Russian oil penalty. The company has strategically partnered with customers on a case-to-case basis to protect long-term relationships and maintain market share, which has temporarily affected margins.

Mohit Jain, Executive Vice-Chairman, stated, "We expect margin pressure to continue until the end of this year. As markets stabilize, hopefully in the next 6 to 9 months, then margins will go back to 15% to 16% levels on our core business."

Brand Expansion and Diversification

In a significant move, Indo Count has signed a licensing agreement with Tommy Hilfiger for utility bedding products. This marks the company's sixth licensed brand, with four added in the last two years, underscoring Indo Count's strong brand equity and manufacturing capabilities.

The company's utility bedding and US branded segments are gaining traction, now contributing 17% of revenues in Q2 FY26, up from 13% in the previous quarter. This represents a quarter-on-quarter increase of approximately 40% and is now at an annual run rate of about $85 million.

Outlook and Strategy

Indo Count remains optimistic about its growth trajectory:

1. The company reiterates its guidance of achieving approximately $275 million in revenues from the utility bedding segment and US brand business over the next three years.
2. The domestic market is showing promising growth, particularly in value-added offerings.
3. Indo Count is expanding its retail footprint, adding 700 new counters for its Boutique Living and Layers brands during Q2.

Jain added, "Indo Count has entered its next phase of growth, which we refer to as Indo Count 2.0. Our investments in utility bedding and premium brands are strengthening our portfolio and expanding our market presence."

While short-term challenges persist, Indo Count's strategic initiatives in brand expansion, market diversification, and operational efficiency position it well for long-term growth in the evolving textile industry landscape.

Conclusion

Indo Count Industries' Q2 FY26 results demonstrate the company's resilience and adaptability in the face of significant external challenges. The company's focus on brand expansion, market diversification, and strategic customer partnerships appears to be paying off, setting the stage for potential growth as market conditions stabilize.

Indo Count Industries , a leading textile manufacturer, has reported mixed results for the quarter ended September 30, 2025, showcasing revenue growth amid challenging market conditions.

Key Financial Highlights

Standalone Performance

• Revenue: Revenue from operations increased to ₹82,796.20 lakhs, up from ₹73,326.67 lakhs in the previous quarter but down from ₹99,102.60 lakhs in the same quarter last year.
• Net Profit: Quarterly net profit stood at ₹4,226.87 lakhs, slightly up from ₹4,028.08 lakhs in the previous quarter but significantly down from ₹8,304.73 lakhs in the corresponding quarter of the previous year.
• Earnings Per Share (EPS): ₹2.13 for the quarter.

Consolidated Performance

• Revenue: Revenue from operations was ₹1,06,213.79 lakhs, an increase from ₹95,870.60 lakhs in the previous quarter and ₹1,03,585.32 lakhs in the same quarter last year.
• Net Profit: Net profit for the quarter stood at ₹3,902.57 lakhs, marginally higher than ₹3,901.98 lakhs in the previous quarter but lower than ₹8,037.87 lakhs in the year-ago quarter.

Board Approval

The Board of Directors approved these results at their meeting held on November 11, 2025.

Performance Analysis

Indo Count Industries has shown quarter-on-quarter growth in both standalone and consolidated revenue. However, the year-on-year comparison indicates challenges in maintaining profit levels. The significant decrease in net profit compared to the same quarter last year suggests that the company may be facing increased costs or market pressures.

Industry Outlook

The textile industry appears to be facing headwinds, as reflected in Indo Count Industries' performance. Factors such as global economic conditions, changes in consumer behavior, and potential supply chain disruptions may be contributing to the current market challenges.

Investor Considerations

Investors may want to closely monitor the company's strategies for improving profitability and market position in the coming quarters. The management's ability to navigate through these challenging times, implement effective cost management measures, and capitalize on growth opportunities will be crucial for the company's future performance.

Indo Count Industries' financial results highlight the dynamic nature of the textile industry and the importance of adaptability in maintaining growth and profitability amidst changing market dynamics.