Indo Count margin expands as revenue rises 38.58% QoQ
Expenses grew slower than revenue, lifting operating margin by 2.05 percentage points, while management cited market-share and branded-portfolio gains.
Filed 04 Nov 2026, 13:52 IST · Indo Count Industries Ltd (ICIL)
Key takeaways
- Consolidated revenue rose 38.58% quarter on quarter to Rs 1,672.65 cr, while operating profit grew 62.53% as expenses increased more slowly.
- Operating margin expanded 2.05 percentage points to 13.93%, but other income accounted for 14.89% of pre-tax profit.
- The stock gained 12.03% on the results day, with trading volume at 28.92 times the reference level.
Price around the results
Revenue momentum accelerated in Q2FY27
Indo Count reported consolidated revenue growth of 38.58% quarter on quarter, with operating profit rising 62.53%. Management said the quarter delivered record income of Rs 1,699 cr and attributed growth to market-share gains, higher wallet share and a larger branded-portfolio contribution. The company also said core and new businesses grew despite inflationary market conditions.
Lower expense growth widened the operating margin
Expenses increased 35.36% quarter on quarter, slower than the 38.58% revenue growth, which expanded operating margin by 2.05 percentage points to 13.93%. Interest expense rose 16.00%, while depreciation increased 2.27%, so the margin improvement came mainly from operating leverage rather than lower finance or depreciation costs. The tax rate rose 0.90 percentage points to 25.19%, while other income was 14.89% of pre-tax profit, making it a material contributor below operating profit.
Margin was above the consumer-discretionary peer median
The quarter's 13.93% operating margin was 2.02 percentage points above the 11.91% median for 223 Consumer Discretionary peers that had reported the same quarter. Sequentially, the margin improved from 11.88% in Q1FY27, but the available trend shows only one prior quarter, so it does not establish a longer multi-quarter direction.
Management outlined capacity and new-business expansion
Management said FY27 capex is estimated at Rs 250 cr, including an effluent treatment plant, maintenance spending and spinning expansion; the spinning project includes 24,000 additional spindles and modernization. The company said it has 153 million metres of integrated bed-linen capacity and has entered pillow and quilt manufacturing in the USA. Management also said it expects to outperform its FY27 guidance in the second half, against guidance of 105-110 million metres, Rs 5,500 cr of total income and a 14.4% EBITDA margin.
Shares rose sharply on the filing day
The stock was up 12.03% at the reaction anchor, with a 0.41% opening gap and a 28.92-times volume ratio. The reaction history does not provide a past-results benchmark, so the move cannot be classified as ordinary or unusual for this stock.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,673 cr | ₹1,207 cr | +38.58% |
| Other income | ₹26 cr | ₹17 cr | +53.90% |
| Expenses | ₹1,440 cr | ₹1,064 cr | +35.36% |
| Operating profit | ₹233 cr | ₹143 cr | +62.53% |
| Operating margin (%) | 13.93% | 11.88% | — |
| Interest | ₹37 cr | ₹32 cr | +16.00% |
| Depreciation | ₹46 cr | ₹45 cr | +2.27% |
| Profit before tax | ₹176 cr | ₹84 cr | +111.08% |
| Tax | ₹44 cr | ₹20 cr | +118.83% |
| Net profit | ₹132 cr | ₹63 cr | +108.60% |
| EPS (₹) | ₹6.66 | ₹3.19 | +108.78% |
Operating margin of 13.93% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +12.03% | +11.40% |
Volume on the results session was 28.92× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Quarterly and half-yearly income reached record highs of Rs. 1,699 crore and Rs. 2,923 crore respectively.
- Growth was driven by market-share gains, increased wallet share and a growing contribution from the branded portfolio.
Guidance & outlook
- The company expects to outperform its FY27 guidance in the second half of FY27.
- FY27 guidance is 105-110 million metres in volume, Rs. 5,500 crore total income and 14.4% EBITDA margin.
- The company expects core-business turnover to reach approximately Rs. 4,000 crore and new-business turnover approximately Rs. 1,500 crore.
- The company aspires to double revenue by 2028, with brands and utility bedding contributing approximately $275 million.
- The USA Brand Business has a $100 million revenue target by 2028.
Expansion
- FY27 estimated capex is Rs. 250 crore, including an effluent treatment plant at Bhilad, maintenance capex and spinning expansion.
- The spinning project includes a brownfield capacity expansion of 24,000 spindles and modernization, with FY27 estimated capex of Rs. 85 crore.
- The company has integrated bed-linen capacity of 153 million metres across Kolhapur and Bhilad.
New initiatives
- The company entered pillow and quilt manufacturing in the USA to extend into new categories.
Competition
- The company reported market-share gains during the quarter and first half of FY27.
Problems & risks
- The company reported robust growth despite inflationary market conditions.
What to watch
- Whether operating margin holds above 13.93% in the next quarter.
- Progress against management's FY27 guidance of 105-110 million metres and Rs 5,500 cr of total income.
- Whether the 24,000-spindle spinning expansion and USA pillow-and-quilt initiative add to the branded and new-business contribution.