loader2
Login Open ICICI 3-in-1 Account
  • Text Size
  • Text to Speech
  • Color Contrast
  • Pause Animations
Open ICICI 3-in-1 Account

Open ICICI
3-in-1 Account

Manage your Savings, Demat and Trading Account conveniently at one place

+91

BLOG

Indo Count Industries reported good performance in Q1FY27

ICICIdirect Research 13 Aug 2026 DISCLAIMER

News: Indo Count Industries reported good performance in Q1FY27 with consolidated revenues growing by 26% YoY to Rs.1207cr (in-line with our estimates of Rs.1180cr). Core business revenues (Standalone business) reported 11.8% YoY growth to Rs.819.4cr while new business (US Utility Bedding + USA branded business) revenues was up ~3x YoY to Rs.387cr. Core business volumes witnessed 2.5% YoY decline to 23mn mtrs (+12% QoQ) impacted by non-availability of containers. Realisation was up 14.7% YoY to Rs.356/mtr (as per our calculation). As tariffs pressure eased, core business facilities utilisation levels improved sequentially to 60% in Q1FY27 vs 54% in Q4FY26 (62% in Q1FY26). Consolidated gross margins improved by 169bps YoY to 55.3%, largely led by improvement in salience of new business which has better realisations (32% in Q1FY27 vs 25% in Q1FY26). Standalone business EBITDA margins improved 188bps YoY to 13.9% largely led by lower tariffs in Q1FY27 vs peak tariffs last year. Subsidiaries (difference between standalone and consol) margins declined by 260bps YoY to 7.7% (as per our calculation), which would have been largely due to higher incubation/ramp up cost of new facilities. Consolidated EBITDA margins improved by 30bps YoY to 11.9% in Q1FY27 (in-line with our estimates 11.8%), with EBITDA growing by 29% YoY to Rs.143.4cr. Strong operating performance along with higher other income led to 62% YoY growth in PAT to Rs.63.2cr. The company also highlighted that Bhilad plant operations were impacted between 24th July 2026 and 12th August 2026 due to extremely heavy rainfall in the region. It has partially begun operation from 12th August 2026.

View: Indo Count’s performance was in-line with our estimates and reported a strong operating performance in the core business led by lower tariffs, while new business continued its rapid scale-up. Core business volumes witnessed sequential uptick after tariffs eased. This is the 1st full quarter of low tariff after it reduced from its peak levy in February 2026. Core business margins of 13.9% is equal to its pre-tariff margins of ~14-14.5%. Ramp up of the new facilities will further provide improvement in the subsidiary margins, which will positively contribute towards consolidated margins. With lower tariffs for India, the core business is now well on track to achieve the revenue guidance of Rs.4000cr. If the new business continues this revenue rate in coming quarters, the business will be on track to achieve Rs.1500cr in FY27. Overall, the management has guided for ~Rs.5500cr in FY27 with EBITDA margin guidance of 13%. Initially, we had expected that if the plant would have been impacted for 5-10 days due to the rain, the impact on production/sales would have been 1-3%. Now that the plant was not operational for ~20 days, the estimated impact would be ~6% on production/sales volumes. We will further provide updates on the impact post the conference call with management on 13th August 2026.

Impact: Positive

View our research recommendation on Indo Count Industries Ltd Also explore more on Research page

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Get it on google Play Store Download on the App Store
market app

Download ICICI Direct app

Invest, Track, and Manage your Portfolio Anytime, Anywhere

Get it on google Play Store Download on the App Store
market app