Indo Count Industries Limited delivered a resilient performance in Q3 FY26, maintaining stability despite challenging tariff conditions that impacted the broader textile industry. The company reported total income of INR1,074 crores compared to INR1,082 crores in the previous quarter, demonstrating operational strength amid external headwinds.

Financial Performance Overview

The company's financial metrics for Q3 FY26 reflected the impact of tariff challenges while showcasing underlying business resilience:

The EBITDA decline was primarily attributed to partial tariff absorption and new Labor Code impact of approximately INR9.2 crores. Adjusted EBITDA for the quarter stood at INR112 crores, representing an adjusted margin of 10.4%.

Strategic Manufacturing Expansion

A significant milestone was achieved with the commencement of commercial production at the company's new greenfield pillow manufacturing facility in Kernersville, North Carolina. This third US manufacturing unit represents the largest facility among the three, with key specifications:

The existing two utility bedding facilities are currently operating at approximately 65% capacity utilization, with the expanded infrastructure expected to support segment scaling.

New Business Segment Momentum

The new business segment emerged as a key growth driver, demonstrating strong performance metrics:

• Revenue Contribution: 20% of total top line in Q3 FY26
• Sequential Growth: 16% increase to INR210 crores
• Annualized Run Rate: Nearly USD100 million
• Year-over-Year Growth: Doubled compared to same period last year

The utility bedding business, which began operations just 16-17 months ago, is expected to contribute approximately USD175 million to consolidated revenue over the next few years. The company's branded portfolio, including the relaunched Wamsutta brand alongside licensed brands Fieldcrest, Waverly, and GAIAM, continues to receive positive customer feedback and strong product reviews.

Trade Policy Developments

Significant trade developments are expected to transform the company's operating environment. India's conclusion of an FTA with Europe and trade deal with the United States represent structural advantages for the textile sector. The EU FTA will provide duty-free access to Europe's USD30 billion home textile market, creating a level playing field with competing countries.

For the US market, tariff uncertainty has meaningfully eased, with the company already engaging customers regarding the transition from the previous 50% tariff environment to the new 18% structure.

Operational Metrics and Outlook

The company maintained its commitment to long-term growth targets while navigating current challenges:

• Debt Reduction: Net debt decreased by INR215 crores compared to March 2025
• Geographic Diversification: Non-US markets contribute approximately 30% of core business revenue
• ESG Leadership: S&P Global ESG score improved to 78 from 45 over two years
• Market Recognition: Won TEXPROCIL Export Award Gold Trophy for sixth consecutive year

Management expects margin pressure to gradually ease as operating conditions normalize and competitive positioning strengthens. The incubation costs for new businesses, currently impacting margins by 150-200 basis points, are expected to diminish by the end of Q4 FY26.

With presence across 50-plus countries spanning five continents, the company remains positioned to capitalize on evolving trade agreements while maintaining its long-term vision of doubling revenues by 2028 through a balanced mix of businesses, geographies, and manufacturing footprint expansion.

Indo Count Industries has announced the authorization of four Key Managerial Personnel (KMPs) to determine materiality of events or information for stock exchange disclosures. The authorization, effective from February 13, 2026, was disclosed in compliance with SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Compliance Framework

The disclosure was made pursuant to Regulation 30(5) of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and the company's Policy for Determination of Materiality of Events or Information. The Board of Directors has formally authorized these personnel to make materiality determinations for disclosure purposes to stock exchanges.

Authorized Key Managerial Personnel

The company has designated four senior executives with the authority to determine materiality of events requiring disclosure:

Implementation Timeline

The authorization becomes effective from February 13, 2026, providing the designated KMPs with the formal authority to assess and determine the materiality of corporate events and information that require disclosure to stock exchanges. This framework ensures timely and appropriate compliance with regulatory disclosure requirements.

Corporate Governance Enhancement

This authorization represents a structured approach to regulatory compliance, distributing materiality determination responsibilities among key executives across different functional areas. The inclusion of both financial and operational leadership ensures comprehensive evaluation of events from multiple perspectives, strengthening the company's disclosure framework and regulatory adherence.