Indo Count Industries: Navigating Tariffs with Strategic Diversification and Brand Power in H1 FY26

Indo Count Industries Ltd., a prominent player in the global home textile sector, has released its consolidated financial results for the second quarter and first half of the fiscal year 2026. The company reported a total income of Rs. 1,082 crore for Q2 FY26, marking a robust 12% quarter-on-quarter growth. For the first half of FY26, the total income stood at Rs. 2,049 crore, reflecting a 3% year-on-year increase. Despite a challenging tariff environment in the US market, Indo Count demonstrated resilience, maintaining market share and advancing its strategic diversification into new business segments.

The company's core business, primarily bed linen, contributed 83% to the total revenue in Q2 FY26, while new businesses, including utility bedding and USA brand business, accounted for 17%. This represents a significant increase in the contribution from new businesses, which recorded Rs. 181 crore in Q2 FY26, growing approximately 40% quarter-on-quarter. This growth underscores the positive trajectory and customer acceptance of these new ventures. The sequential volume growth of 7% in Q2 FY26, reaching 25.2 million meters, further highlights the company's operational strength amidst market volatility.

Financial Highlights

(Note: Q2 FY25 and H1 FY25 numbers are reinstated. EBITDA margin in Q2 FY26 was impacted by partial tariff absorption and incubation costs of new businesses.)

Strategic Expansion and Brand Power

Indo Count's strategic focus on premiumization and brand-led growth is evident in its recent initiatives. The company announced a licensing agreement with the globally renowned 'Tommy Hilfiger' brand for its utility bedding segment, marking its sixth licensed brand. This expansion reinforces Indo Count's strong brand equity and global partnerships. Furthermore, the successful relaunch of its legacy brand, Wamsutta, in the U.S. market has gained significant traction, with products sold across all 50 states within the first 45 days, reflecting strong brand recall and customer acceptance.

In the domestic market, Indo Count is amplifying its presence through its premium brand, Boutique Living, and Layers. The company added 700 new counters in Q2 FY26, enhancing its retail footprint. Digital marketing campaigns and influencer-driven initiatives have boosted brand visibility and engagement on its e-commerce platforms, boutiquelivingindia.com and layersindia.com. New offerings in the Bath and Top of Bed segments are further expanding its product portfolio, aiming for a complete Bed & Bath Home Fashion solution for Indian consumers.

Operational Resilience and Future Outlook

The operating environment in FY26 has been characterized by fluid tariff rates in the U.S., which escalated from 10% to 50% in late August 2025. This has impacted India's export competitiveness. To navigate this, Indo Count strategically shared a portion of the additional tariff cost with customers to protect long-term relationships and market share, which temporarily affected margins. The company anticipates this situation to prevail until the tariff structure stabilizes, but remains optimistic about ongoing US-India trade discussions.

Indo Count is also making significant investments in its manufacturing capabilities. The third manufacturing unit for utility bedding in North Carolina, USA, a Greenfield project with an investment of approximately USD 15 million, is expected to commence operations by late Q3 or early Q4 FY26. This facility is projected to generate USD 85 to 90 million in annual revenues at optimal capacity utilization, contributing to an aggregate revenue target of approximately $175 million from the utility bedding business by 2028. The company aims to achieve 2x revenue by 2028, with utility bedding and USA brand segments contributing approximately$275 million.

Commitment to Sustainability

Indo Count continues to demonstrate a strong commitment to sustainability and ESG initiatives. The company achieved a DJSI Score of 66 for 2024, placing it among the top 10% in the Textile, Apparel & Luxury Goods sector. Its ESG targets include a 33% reduction in Scope 1 & 2 GHG emissions and a 15% reduction in Scope 3 GHG emissions by 2030. Water conservation efforts aim to reduce freshwater consumption from 50% to 25% by 2030, with 100% Preferred Fibre sourcing by 2030. These initiatives underscore Indo Count's dedication to responsible business practices and long-term value creation.

Indo Count Industries Ltd. is strategically positioning itself for sustained growth by diversifying its product portfolio, expanding its market presence, and investing in advanced manufacturing capabilities. Despite near-term margin pressures from tariffs and new business incubation, the company's focus on operational efficiency, brand building, and sustainability provides a strong foundation for its 'Indo Count 2.0' growth journey.