Indo Count Industries Ltd

AGM details

• Date/time: 25 August 2026, 12:00 Noon IST; VC/OAVM.
• Mode: VC/OAVM via NSDL platform.
• Meeting concluded at 1:07 PM IST.

Key resolutions

• Item 1 (Ordinary): Adopt standalone and consolidated financial statements for FY 2025-26.
• Item 2 (Ordinary): Declare final dividend of Rs 1.50 per equity share.
• Item 3 (Ordinary): Re-appoint director by rotation.
• Item 4 (Special): Re-appoint independent director for second five-year term.
• Item 5 (Special): Waiver of recovery of excess managerial remuneration to Executive Chairman.
• Item 6 (Special): Waiver of recovery of excess managerial remuneration to Executive Vice-Chairman.

Voting results

• E-voting results and scrutinizers’ report to be uploaded within 2 working days.

Dividend

• Final dividend of Rs 1.50 per equity share.

Director changes

• Rotation-based director re-appointment proposed.
• Independent director re-appointed for second five-year term.

Financial Performance

• Total income: INR 1,224 crores in Q1 FY27; QoQ +13%; YoY +27%.
• Core revenue: INR 837 crores; QoQ +4%.
• Volumes: 23 million meters in Q1 FY27; +12% QoQ; -3% YoY.
• EBITDA: INR 160 crores; margin 13.1% (vs 10.7% Q4 FY26); +38% QoQ.
• PAT: INR 63 crores; margin 5.2%; +2.5x QoQ; +294 bps YoY.
• New business revenue: INR 387 crores; ~60% of USD 275 million target for 2028 (annualized).
• Non-U.S. core share ~30% in quarter; U.S. core ~70% of total core revenue.
• FY27 guidance: volume 105–110 million meters; core revenue ~INR 4,000 crores.
• New business target: INR 1,500 crores for FY27; USD 275 million ambition by 2028.
• Bhilad plant disrupted by heavy rainfall (23 Jul 2026); partial resume 12 Aug 2026; insured; claim initiated.

Operations & Market Dynamics

• NC greenfield facility commissioned January 2026; overall utilization ~60–65% despite added capacity.
• New business (utility bedding and U.S. brand) revenue INR 387 crores in Q1 FY27; on track for FY27.
• Bed linen, utility bedding margins ~15% each; brand margin 100–200 bps above 15% long‑term.
• Branding mix: total branded business ~20% of revenue; new brands ~10% of total brand revenue.
• UK share of core revenue ~8–10%; active UK office; FTAs expected to boost EU/UK demand over 12–18 months.
• Non-U.S. markets expected to grow 20%+ in FY27; non-U.S. revenue mix supported by FTAs.

Guidance & Outlook

• Reiterated FY27 targets: 105–110 million meters; core revenue ~INR 4,000 crores.
• New business ambition: INR 1,500 crores for FY27; USD 275 million target by 2028.
• Non-U.S. revenue growth: 20%+ in FY27; UK/EU FTAs to aid ramp‑up.
• FY28 revenue aspiration: INR 8,000 crores; built on core growth and USD 275 million new business.
• Utilization target for utility bedding: 60–65% for the year.

Q&A Highlights

• Tariff refunds: no material benefit in the quarter; ~80% exports on FOB; difficult to quantify yet.
• New business ramp: INR 387 crores in Q1; on track for INR 1,500 crores FY27; USD 275m by 2028.
• Core margins: blended margin targeting 15%; bed linen and utility ~15%; brand margin 100–200 bps higher.
• U.K./EU tariff FTAs: visibility improving; U.K. share ~8–10%; 12–18 months to show full impact.
• Interest cost: run-rate ~INR 120 crores per year; debt pricing ~6–7% depending on bank.
• Rupee realizations: bed linen realization ~INR 357/m; YoY +1.5%; price hikes expected from Q2.

Risks & Watchpoints

• Container availability constraints ongoing; momentum expected to strengthen into Q2 and Q3 FY27.
• Bhilad disruption; insured coverage in place; potential near-term volume offset by other plants.
• Tariff environment and FX pass-through; some product-mix effects on rupee realizations.
• Execution risk in scaling new businesses; brand margins depend on ramp pace and mix.

Meeting Details

• Date and time: 13 August 2026 at 11:00 IST.
• Type/Mode: Investors' conference call (group), virtual.
• Organiser: Indo Count Industries Limited; for Q1 FY27 results.

Participants

• Key company participant: Company Secretary & Sr. GM - Legal.

Purpose

• Discuss standalone and consolidated Q1 FY27 results for quarter ended 30 June 2026.

Additional Notes

• Audio recording of the call uploaded on company website.

Appointment: Pankaj Saxena as President - Retail

• Appointment type: elevation to President - Retail and Senior Management, effective 12 August 2026.
• Reason: Board approved on Nomination and Remuneration Committee recommendation.
• Profile: 27+ years' experience across textiles; currently heads Domestic Retail.
• Designation: President - Retail; Senior Management Personnel.

Operational Update

• Bhilad facility in Gujarat partially resumed operations as of 12 August 2026; impact on production being evaluated.
• Insurance claim initiated; preliminary survey completed; loss assessment ongoing.

Financial highlights

• Total income Rs 1,224 crore in Q1 FY27 (YoY +26.5%)
• EBITDA Rs 160 crore; margin 13.1% in Q1 FY27
• PAT Rs 63 crore; EPS Rs 3.19 in Q1 FY27
• Volumes 23 million meters in Q1 FY27
• New Business contributed ~1/3 of revenue

Outlook and guidance

• FY27 revenue guidance: Rs 5,500 crore; EBITDA ~13%
• New Business growing; contributes meaningfully to revenue
• On track to double revenue by 2028 from FY25 base

Operational highlights

• US utility bedding facilities utilization 60–65%
• Greenfield facility ramp-up contributing to costs
• Volume recovery supported by easing US tariff uncertainty; QoQ growth ~12%

Strategic developments and ratings

• New business growth; expanded value-added presence in US
• Awards: three CITI Textile Sustainability Awards 2026
• ESG score 78; top 3% globally in sector
• Credit ratings: ICRA AA-; CARE AA- (long-term); A1+ short-term

Business Overview

• Core business: bed linen; new segments: utility bedding and USA brand.
• Indo Count 2.0 aims to expand global presence and value-added offerings.

Key Operational Highlights

• Q1FY27 total income Rs 1,224 cr; YoY 26.5%.
• New business contribution Rs 387 cr; nearly 3x YoY.
• EBITDA Rs 160 cr; margin 13.1%; QoQ up 241 bps.
• Volumes 23 mn meters; steady demand recovery.
• USA utility bedding capacity across Groveport, Phoenix, Kernersville; target $175m by 2028.
• New brands license: Tommy Hilfiger and Beautyrest.
• Greenfield NC facility started commercial production January 2026.

Financial Performance

• Total income Rs 1,224 cr; YoY 26.5%.
• PAT Rs 63 cr; EPS Rs 3.19.
• FY26: income Rs 4,211 cr; EBITDA Rs 461 cr; margin 11.0%.
• Q1 mix: New Businesses 32%, Core 68%.

Capital Structure & Liquidity

• Credit ratings: CARE AA- (LT) / CARE A1+ (ST); ICRA AA- (LT) / ICRA A1+ (ST).

Strategic Priorities & Outlook

• Indo Count 2.0; scale core business and new brands; invest in talent and capex.
• USA expansion and omnichannel, multibrand approach to drive growth.
• Capex FY27e Rs 250 cr: ETP 95, maintenance 70, spinning 85.

Risks & Mitigation

• Global trade uncertainties and tariff movements; container availability impacting volumes.

Governance & Leadership

• Executive Chairman: Anil Kumar Jain; CFOs: K. Muralidharan and Manish Bhatia.

Financial performance

• Standalone revenue from operations: Rs 81,943.66 lakh.
• Standalone total income: Rs 83,972.19 lakh.
• Standalone PBT: Rs 9,087.42 lakh; PAT: Rs 6,678.27 lakh.
• Standalone EPS: Rs 3.37.
• Consolidated revenue from operations: Rs 1,20,696.20 lakh.
• Consolidated total income: Rs 1,22,401.10 lakh.
• Consolidated PBT: Rs 8,350.94 lakh; PAT: Rs 6,322.44 lakh.
• Consolidated EPS: Rs 3.19.
• Total comprehensive income (consolidated): Rs 8,485.24 lakh.

Operational developments & risks

• Bhilad plant flooded since 23 July 2026; insured; survey ongoing.
• Insurance claim to be filed; no current-quarter adjustment.
• Labour Code impact recognised as past service cost; gratuity Rs 881.92 lakh; absences Rs 78.78 lakh.
• Single textile segment under Ind AS 108.
• Board approval and limited-review status communicated.

Acquisitions & subsidiaries

• ICG acquired 81% Fluvitex USA in Sep 2024; option for 19% by 2029.
• Final PPA adjustments completed in Sep 2025.
• ICG acquired 100% Modern Home Textile in Dec 2024; PPAs finalised Sep 2025.

Notes & governance

• Board approved unaudited results on Aug 12, 2026.
• Results prepared under Ind AS; limited review by PwC; no audit opinion.

Meeting Details

• Date and time: 14 August 2026, 10:00 am.
• Type and mode: 1x1 / Group meeting; physical in Mumbai.
• Organizer: Emkay Confluence 2026.
• Place: Mumbai.

Participants

• Key company participants: company officials (management roles not specified).

Purpose

• Purpose: investor conference; discussions based on publicly available information.