Indo Count new businesses deliver 30% of H1 FY27 revenue

Indo Count’s new businesses generated Rs 890 crore, or 30% of revenue, in H1 FY27, compared with a 19% contribution in FY26. Utility bedding and USA brand operations drove the mix change, while the core bed-linen business generated Rs 2,033 crore and accounted for the remaining 70% of first-half revenue.

How has Indo Count’s revenue mix changed?

Indo Count’s new-business contribution rose to 30% in H1 FY27 from 19% in FY26, while the core business contribution declined to 70% from 81%. New-business revenue of Rs 890 crore in the first half exceeded the Rs 792 crore reported for the full FY26 by Rs 98 crore, whereas core-business revenue was Rs 2,033 crore in H1 FY27.

The historical figures show that the newer verticals have grown faster than the core operation. New-business revenue increased from Rs 67 crore in FY23 to Rs 792 crore in FY26, with management stating a 128% compound annual growth rate, or CAGR. Core-business revenue moved from Rs 2,923 crore in FY23 to Rs 3,419 crore in FY26, and management stated a 5% CAGR for the displayed period.

The core business consists of bed linen, including sheets, fashion bedding and institutional bedding. Indo Count defines its new businesses as utility bedding and the USA brand business, so the reported shift reflects revenue from separate business verticals rather than only a change in the product mix within bed linen.

Which businesses are driving Indo Count’s mix shift?

Indo Count’s mix shift is being driven by its USA utility-bedding and USA brand businesses. Utility bedding includes pillows, quilts, comforters, blankets, mattress pads, down-alternative comforters and mattress protectors, while the USA brand operation includes Wamsutta, Fieldcrest, Waverly and Gaiam.

The utility-bedding operation has facilities in Groveport, Ohio, Phoenix, Arizona, and Kernersville, North Carolina. Indo Count said its greenfield facility started commercial production in January 2026, while the segment uses Beautyrest and Tommy Hilfiger licensed brands in a model covering business-to-business sales and branded business.

The USA brand business adds bath, window, rug and other home-textile categories to the company’s sheets and fashion-bedding offering. Wamsutta includes curtains, towels, bath rugs, blankets and utility bedding, while the Fieldcrest and Waverly licensing arrangements cover sheets, fashion bedding, utility bedding and bath categories in the USA and Canada.

How did Indo Count perform in H1 FY27?

Indo Count reported total income of Rs 2,923 crore in H1 FY27, up 43% from Rs 2,049 crore in H1 FY26, while earnings before interest, tax, depreciation and amortisation, or EBITDA, rose 73% to Rs 420 crore. EBITDA margin increased by 250 basis points to 14.4%; 100 basis points equal one percentage point.

Profit after tax was Rs 195 crore in H1 FY27, compared with Rs 78 crore a year earlier, an increase of 150%. Management attributed year-on-year revenue growth across businesses to market-share gains and deeper customer relationships, and linked the margin improvement to higher resource utilisation and operational efficiencies.

The second quarter also improved sequentially. Q2 FY27 total income was Rs 1,699 crore, compared with Rs 1,224 crore in Q1 FY27, while EBITDA rose to Rs 259 crore from Rs 160 crore. The EBITDA margin reached 15.3% in Q2 FY27, up from 13.1% in Q1 FY27, with management citing product mix, branded-product traction and better asset utilisation across domestic and international operations.

What are Indo Count’s FY27 targets for its businesses?

Indo Count has guided for about Rs 1,500 crore of FY27 turnover from new businesses, and its H1 FY27 revenue of Rs 890 crore represented about 60% of that target. The company has guided for about Rs 4,000 crore of core-business turnover, with H1 FY27 core revenue of Rs 2,033 crore representing about half of that objective.

At the consolidated level, Indo Count guided for about Rs 5,500 crore of FY27 total income, compared with Rs 4,211 crore in FY26. H1 FY27 total income of Rs 2,923 crore represented 52% of the annual target. FY27 volume guidance is 105 million to 110 million metres, compared with 94.1 million metres in FY26, while H1 FY27 volume was 51 million metres.

Management also said it aspires to double revenue by 2028 from the FY25 base. The presentation identifies utility bedding and the USA brand business as the new-business segments intended to contribute to that plan, supported by three USA utility-bedding manufacturing facilities and the expansion of the branded portfolio.

What capacity and capital expenditure support Indo Count’s plan?

Indo Count has integrated bed-linen capacity of 153 million metres, comprising 108 million metres at Kolhapur, Maharashtra, and 45 million metres at Bhilad, Gujarat. FY26 sales volume was about 94 million metres, compared with FY27 guidance of 105 million to 110 million metres, which is the operating base for the company’s planned core-business growth.

The company has outlined Rs 250 crore of FY27 capital expenditure to be completed in the next 12 to 18 months, funded through a mix of internal accruals and debt. The programme includes Rs 95 crore for an effluent treatment plant at Bhilad, Rs 85 crore for a 24,000-spindle brownfield spinning expansion and modernisation, and Rs 70 crore for maintenance and other capital expenditure.

Indo Count reported total assets of Rs 4,988 crore at September 2026, compared with Rs 4,492 crore at March 2026. Cash and cash equivalents rose to Rs 316 crore from Rs 114 crore over the same period, while net debt was Rs 518 crore and net debt-to-equity was 0.2 times at September 2026.

Conclusion

Indo Count’s H1 FY27 figures show a defined change in its business mix: new businesses produced Rs 890 crore and 30% of revenue, against Rs 792 crore and 19% in FY26. The increase coincided with consolidated total income rising 43% year on year to Rs 2,923 crore and EBITDA margin increasing 250 basis points to 14.4%.

The next reported measure will be progress toward FY27 turnover guidance of about Rs 1,500 crore for new businesses and about Rs 4,000 crore for the core business. Management’s longer-term plan also depends on ramping the three USA utility-bedding facilities, expanding its USA brands and completing Rs 250 crore of capital expenditure within the disclosed 12-to-18-month period.