1. At a Glance – Bedsheets, Billion-Dollar Dreams & a 65% Profit Knockout
Indo Count Industries is currently priced at ₹304, commanding a market cap of ₹6,006 Cr. Over the last 3 months, the stock is down 3.2%, but over 3 years it has delivered a handsome 33.9% CAGR. Sounds heroic, right? Now hold that pillow tight.
Latest Q3 FY26 results:
Revenue at ₹1,074 Cr (down 8% YoY), PAT at ₹24 Cr (down 65.5% YoY), and EPS at ₹1.23. OPM has slipped to 9.5%.
Trailing twelve month EPS stands at ₹5.74, which means the stock is trading at a P/E of ~52.8.
Debt? ₹1,243 Cr.
ROCE? 13.5%.
ROE? 11.3%.
Price to Book? 2.6×.
So the world’s largest bed linen exporter is now priced like a luxury fashion brand but delivering margins like a struggling textile mill.
Is this Indo Count 2.0 — or just expensive cotton sheets?
Let’s open the linen cupboard.
2. Introduction – The King of Bedsheets Meets Tariff Reality
Indo Count calls itself the largest global bed linen company. It exports to 50+ countries and gets 95% of revenue from exports, with the US contributing roughly 75% of that.
Translation: If America sneezes, Kolhapur catches a cold.
In Q3 FY26, the US tariff impact became visible. Management says volumes weren’t substantially impacted, but margins were hit due to tariff absorption and lower fixed cost absorption.
New businesses (Utility Bedding + USA Brand Business) now contribute 20% of Q3 revenue. That’s good diversification. But profits have collapsed.
Let’s talk numbers:
- Q3 FY25 PAT: ₹71 Cr
- Q3 FY26 PAT: ₹24 Cr
That’s not a pillow fight. That’s a financial knockout.
Yet management is talking about doubling revenues by 2028.
Bold. Very bold.
So is this a temporary tariff tantrum or a structural margin reset?
3. Business Model – WTF Do They Even Do?
Imagine this.
You go to Walmart in the US and buy a bed sheet set. There’s a good chance Indo Count manufactured it.
They operate across
