Indo Count Industries Limited's Q2 profit triples to Rs 131.88 crore

Indo Count Industries Limited reported consolidated profit of Rs 131.88 crore for the quarter ended September 30, 2026, compared with Rs 39.03 crore a year earlier, as revenue from operations increased 57.48% to Rs 1,672.65 crore. Profit before tax rose to Rs 176.27 crore from Rs 52.06 crore in the same quarter of 2025.

How did Indo Count perform in the September 2026 quarter?

Indo Count’s consolidated revenue, profit before tax and profit for the period increased in the quarter ended September 30, 2026. Revenue from operations was Rs 1,672.65 crore, up from Rs 1,062.14 crore in the September 2025 quarter and Rs 1,206.96 crore in the June 2026 quarter. Profit for the period was more than three times the Rs 39.03 crore reported a year earlier and more than twice the Rs 63.22 crore recorded in the preceding quarter.

Indo Count recorded total income of Rs 1,698.89 crore, including other income of Rs 26.24 crore, against total income of Rs 1,081.56 crore a year earlier. Total comprehensive income reached Rs 138.74 crore, compared with Rs 23.30 crore in the September 2025 quarter, as other comprehensive income was Rs 6.87 crore against a loss of Rs 15.72 crore. Basic and diluted earnings per share were Rs 6.66, compared with Rs 1.97 a year earlier, on shares with a face value of Rs 2 each.

What changed in Indo Count’s costs and profitability?

Indo Count’s profit before tax increased by Rs 124.21 crore year on year because total income rose by Rs 617.33 crore while total expenses rose by Rs 493.11 crore. Total expenses were Rs 1,522.62 crore in the September 2026 quarter, compared with Rs 1,029.51 crore a year earlier. The quarterly financial statement reported no net exceptional item.

Cost of materials consumed rose to Rs 705.99 crore from Rs 498.01 crore, employee benefits expense increased to Rs 193.12 crore from Rs 124.45 crore, and other expenses rose to Rs 416.41 crore from Rs 334.38 crore. Purchases of stock-in-trade were Rs 125.43 crore, compared with negative Rs 12.53 crore in the September 2025 quarter. The inventory-change line was negative Rs 1.30 crore, against a positive Rs 14.16 crore a year earlier.

Finance costs were Rs 36.61 crore, compared with Rs 31.82 crore in the year-earlier quarter, while depreciation and amortisation increased to Rs 46.37 crore from Rs 39.20 crore. Total tax expense was Rs 44.40 crore, comprising current tax of Rs 41.48 crore and deferred tax of Rs 2.92 crore. In the comparable 2025 quarter, total tax expense was Rs 13.03 crore, leaving reported profit for the period at Rs 39.03 crore.

How did Indo Count’s first-half results and financial position change?

Indo Count reported first-half revenue from operations of Rs 2,879.62 crore for the half year ended September 30, 2026, up from Rs 2,020.84 crore in the corresponding half of 2025. Profit for the period increased to Rs 195.10 crore from Rs 78.05 crore, while profit before tax rose to Rs 259.78 crore from Rs 102.60 crore. Revenue therefore increased by Rs 858.77 crore over the corresponding half-year period.

The group reports one operating segment, textile business, because its chief operating decision maker evaluates the business as a whole for resource allocation and performance assessment. First-half total expenses were Rs 2,663.12 crore, compared with Rs 1,946.29 crore a year earlier. Material costs were Rs 1,183.96 crore, employee benefits expense was Rs 362.70 crore, and finance costs were Rs 68.17 crore for the half year ended September 30, 2026.

At September 30, 2026, total assets were Rs 4,987.57 crore, compared with Rs 4,491.83 crore at March 31, 2026. Current assets increased to Rs 2,915.85 crore from Rs 2,389.90 crore, including inventories of Rs 1,424.89 crore and cash and cash equivalents of Rs 315.64 crore. Total equity increased to Rs 2,549.19 crore from Rs 2,355.30 crore over the same period.

What did Indo Count disclose about the Bhilad flooding?

Indo Count said unprecedented rainfall and flooding temporarily affected its Bhilad, Gujarat manufacturing facility during the quarter ended September 30, 2026. The group said factory assets, materials and business-interruption losses at the site were adequately covered by comprehensive insurance policies. It recognised an inventory loss of Rs 45.02 crore, net of salvage value received, and an insurance claim of the same Rs 45.02 crore in the statement of profit and loss.

The insurer had prima facie admitted the claim following its damage survey, according to the filing. It approved an interim payment of Rs 14.99 crore after the quarter end, while its final assessment of the claim amount remained pending. The equal loss and claim recognition explains why the September-quarter statement showed no net exceptional item, but the eventual settlement has not been finalised.

Indo Count’s board approved the unaudited standalone and consolidated results on November 4, 2026, after review by the audit committee. Price Waterhouse Chartered Accountants LLP conducted a limited review of the consolidated results for the quarter and half year ended September 30, 2026. The financial statements were prepared under Indian Accounting Standards, or Ind AS, as notified under the Companies Act, 2013.

Conclusion

Indo Count combined 57.48% revenue growth in the September 2026 quarter with a rise in profit for the period to Rs 131.88 crore from Rs 39.03 crore. The half-year results showed the same direction, with profit before tax increasing to Rs 259.78 crore from Rs 102.60 crore as income grew faster than total expenses in the single textile-business segment.

The disclosed matter to watch next is the final Bhilad insurance settlement, after an interim payment of Rs 14.99 crore was approved against the Rs 45.02 crore claim recognised in the results. Subsequent results will also show how inventories, which rose to Rs 1,424.89 crore at September 30, 2026 from Rs 1,250.87 crore at March 31, 2026, develop alongside current borrowings of Rs 763.70 crore.