Indo Count Industries announced its un-audited financial results for the quarter ended December 31, 2025 (Q3FY26). The company achieved a significant milestone by registering a 20% revenue contribution from its New Businesses. Furthermore, Indo Count’s S&P Global ESG Score rose sharply to 78, placing it in the top 3 percentile globally within its industry. Performance was significantly impacted by the US tariff, though core revenue remained stable overall.
Q3 FY26 Financial Overview
Indo Count Industries Limited reported its financial performance for the quarter ending December 31, 2025 (Q3FY26). Total Income stood at Rs. 1,074 Crs, marking an 8.0% YoY decline. Adjusted EBITDA for the quarter was reported at Rs. 112 Crs, reflecting a 31.1% YoY drop, with the margin contracting to 10.4%, largely due to the impact of US tariffs and fixed cost under-absorption.
Performance Highlights and Strategic Growth
The company highlighted several key achievements during the quarter:
- Achieved an S&P Global ESG Score of 78 out of 100, positioning the company in the top 3 percentile globally in the Textile, Apparel & Luxury Goods industry.
- New Business (Utility bedding and USA Brand business) recorded revenue of Rs. 210 Crs in Q3FY26, achieving an annualized run rate of approximately ~$100Mn. This contributed 20% to the total revenue mix, up from 17% in the previous quarter (Q2FY26).
- The company commenced commercial operation of its new greenfield pillow manufacturing facility in the USA starting in January 2026, marking its third manufacturing facility in the USA.
- Indo Count was honored with the TEXPROCIL Export Award 2023–24 Gold Trophy for the Highest Exports of Bed Sheets/Bed Linen for the 6th consecutive time.
Executive Commentary on Market Dynamics
Executive Chairman, Mr. Anil Kumar Jain, commented on the positive momentum driven by recent trade deals.
He noted that the conclusion of the EU-FTA places India on a duty-free level playing field for textile exports to the EU, while the USA trade deal removes tariff uncertainty, providing long-term visibility. The commencement of the new USA greenfield facility is expected to improve momentum across all business segments. The company remains confident in its vision of doubling revenues through a balanced mix of businesses and geographies.
Quarter-over-Quarter (QoQ) Analysis
The QoQ analysis showed stable overall performance despite operating under the 50% US tariff regime.
- Volumes remained stable; however, Core business revenues were affected by US tariffs, which was offset by growth in New Businesses.
- Adjusted EBITDA saw a decline of approximately ~9% QoQ, with margins contracting by 100 basis points to 10.4%.
- Sales Volume for Q3 FY26 stood at 24.8 Mn Mtrs.
Year-over-Year (YoY) Context
Performance comparison YoY is noted as not fully comparable because the previous year’s period (Q3FY25) was not impacted by the US tariff. YoY performance saw Adjusted EBITDA decline by ~31%. However, New Business revenue doubled compared to the corresponding period.
Geographical Diversification
The company continues to prioritize geographical diversification, with Non-USA core business contributing ~30% to the overall revenue mix. Domestic business contributed a minor share at 2.25% to total revenues.
Source: BSE
