Q2 2026 Indo Count Industries Ltd Earnings Call Transcript
Key Points
- Indo Count Industries Ltd (BOM:521016) signed a licensing agreement with the globally recognized Tommy Hilfiger brand, marking its sixth licensed brand.
- The relaunch of Wamsutta in the US has seen encouraging traction, with products sold in all 50 states, reflecting strong brand recall.
- The company maintained approximately 60% capacity utilization across its US manufacturing facilities despite challenging conditions.
- Indo Count Industries Ltd (BOM:521016) achieved a quarter-on-quarter revenue growth of 12% in Q2 FY26, driven by higher contributions from new businesses and volume growth in core business.
- The company reduced its debt by INR175 crores in H1 FY26, with a net debt-to-equity ratio of 0.34 times as of September 2025.
- The 50% tariff imposed on India has impacted Indo Count Industries Ltd (BOM:521016)'s export competitiveness in the US market.
- Margins have been temporarily affected due to strategic decisions to partner with customers amidst tariff challenges.
- EBITDA margin for Q2 FY26 decreased to 11.4% from 12.3% in the previous quarter, with margin pressure expected to continue until the end of the year.
- The company's third manufacturing facility in North Carolina faced a delay and is now expected to become operational in late Q3 FY26 or early Q4 FY26.
- The full impact of the tariff is just setting in, which may affect margins further in the second half of FY26.
Ladies and gentlemen, good day, and welcome to Indo Count Industries Limited Q2 and H1 FY26 earnings conference call. This conference call may contain forward-looking statements about the company, which are based on beliefs, opinions and expectations of the company as on the date of this call.
These statements are not the guarantees of future performance and involve risks and uncertainties that are difficult to predict. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Mohit Jain, Executive Vice Chairman. Thank you, and over to you, sir.
Thank you. Good afternoon, and a very warm welcome to all of you joining us for the Indo Count Industries Limited Q2 and H1 FY26 earnings call.
I'm also joined by our Group CFO, Mr. Muralidharan; Manish Bhatia, our CFO; and Strategic Growth Advisors, our Investor Relations adviser. We hope all of you have had the chance to review the financial results and the
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