Indo Count Industries Shares Rise 5% After Financial Results

Key numbers

Market Cap	₹9,246.16 CrTextiles
P/E Ratio	61.28xSector PE: 33.33x
1-Year Return	64.7%Momentum Score: 72
RSI	58.82Neutral Zone

Key highlights

• Consolidated revenue from operations grew 57.5% year-on-year to ₹1,673 crore
• Net profit surged 238.2% to ₹132 crore compared to ₹39 crore in the year-ago period
• Operating margin expanded significantly to 10.4% from 4.8% in Q2 FY26
• Quarterly net profit more than doubled sequentially, rising 108.7% from ₹63.2 crore in Q1 FY27
• Company recognized an exceptional item of ₹45.02 crore for flood-related inventory loss, fully offset by an insurance claim
• Interim insurance payment of ₹14.99 crore approved by insurers subsequent to the quarter end
• Promoter holding remained steady at 58.74% with zero shares pledged

Robust Revenue Growth and Bottom-line Surge

Indo Count Industries reported a strong financial trajectory in the second quarter of the 2027 fiscal year, with total income reaching ₹1,699 crore. Revenue from operations climbed 57.5% year-on-year, reflecting robust demand in the textile sector. The bottom line showed even greater momentum, with net profit jumping 238.2% to ₹132 crore.

This performance follows the company's earlier reaffirmation of its FY27 revenue guidance of approximately ₹5,500 crore. The sequential profit growth of 108.7% indicates an acceleration in operational efficiency as the company works toward its long-term goal of doubling revenues from its FY25 base to reach ₹8,000 crore by the end of calendar year 2028.

Flood Disruptions and Exceptional Insurance Claims

• The manufacturing facility at Bhilad, Gujarat, was temporarily affected by unprecedented rainfall and flooding during the quarter.
• A loss of inventory worth ₹45.02 crore, net of salvage value, was recorded due to damage from the flood events.
• An insurance claim of an equivalent ₹45.02 crore was recognized in the Statement of Profit and Loss, resulting in a neutral net impact on earnings.
• Subsequent to the quarter end, insurers approved an interim payment of ₹14.99 crore toward the claim.
• Management stated that all factory assets and materials are adequately protected under comprehensive insurance policies.
• The company noted that the survey of damages is complete and a final assessment of the total claim amount is pending.

Strategic Margin Expansion and Sector Context

Operating efficiency improved markedly during the quarter, with margins rising to 10.4% from 4.8% in the same period last year. This expansion is moving closer to management's full-year EBITDA margin guidance of approximately 13%. While the stock's P/E ratio of 61.28 is nearly double the sector average of 33.33, its 64.7% one-year price appreciation reflects significant market momentum.

The company continues to maintain a volume target of 105–110 million meters for FY27. Institutional participation also showed growth, with total institutional holding rising by 0.8% during the recent period, led by increased positions from both Mutual Funds and Foreign Institutional Investors.

Audit Committee Review

The above results of Indo Count Industries Limited ('the Holding Company') and its Subsidiaries (together referred to as 'Group') were reviewed by the Audit Committee and approved by the Board of Directors at their meeting held on November 04, 2026.

What to watch next

• Final assessment and settlement of the Bhilad plant insurance claim
• Performance against the FY27 revenue target of ₹5,500 crore
• Achievement of the volume guidance of 105–110 million meters by March 2027
• Expansion of EBITDA margins toward the 13% management target

“Based on the assessment performed of the losses due to floods and progress status of insurance claim, loss of inventory of Rs. 4,501.88 lakhs (net of salvage value received) and insurance claim to the extent of Rs. 4,501.88 lakhs is recognised in Statement of Profit and Loss as exceptional items.”

Indo Count Industries · financial snapshot

Share price	₹466.85
Market capitalisation	₹9,246.16 Cr
Revenue (annual)	₹4,141.35 Cr
Net profit (annual)	₹126.68 Cr
Revenue (latest quarter)	₹1,206.96 Cr+14.11% vs previous quarter
Net profit (latest quarter)	₹63.22 Cr+161.24% vs previous quarter
P/E (TTM)	61.28×Sector 33.33×
Promoter holding	58.74%0.00% QoQ
FII holding	10.68%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.