01 — At a Glance
The Bedsheet Startup That Became Global, Only to Fight Tariffs Like It’s 2016
- 52-Week High / Low₹351 / ₹211
- Q3 FY26 Revenue₹1,063 Cr
- Q3 FY26 PAT₹24 Cr
- Q3 FY26 EPS₹1.23
- Annualised EPS (Q3×4)₹4.92
- Book Value₹117
- Price to Book2.0x
- Debt / Equity0.54x
- Net Debt / PBILDT2.17x
- Return Over 1 Year-6.9%
The Auditor’s Reality Check: Indo Count Industries finished Q3 FY26 with ₹1,063 crore revenue, down 7.7% QoQ. PAT collapsed by 65.5% QoQ to ₹24 crore. EPS sits at ₹1.23 — annualise that to ₹4.92, giving you a P/E of 47.6x. And yet, the stock somehow trades at an implied full-year P/E of 40.7x. The narrative? “New businesses are scaling, tariffs are temporary, and North Carolina is our future.” The data? “Our core business is eating mud.”
02 — Introduction
Once Upon a Time, Someone Decided to Export Bedsheets From India to Wall Street
It was 1988. Anil Kumar Jain had a dream: to create the world’s largest home textile company from a textile town in Maharashtra. Three decades later, he succeeded. Indo Count Industries is now the world’s #1 bed linen exporter, commanding ~20% market share in U.S. bed sheets. Their bedsheets are in Walmart. Their quilts are in Target. Their pillows are in every suburban American guest room collecting dust next to unopened gift baskets.
Then the U.S. decided to impose 50% tariffs on Indian textiles. Overnight, a 30-year competitive advantage became a 30-day problem.
Q3 FY26 was the first full quarter of this tariff regime. Revenue flatlined. Profit cratered. Operating margins compressed 200 basis points YoY. Management’s response? “We’re investing in U.S. manufacturing. We’re scaling new businesses. We’re future-focused, not past-focused.” Translation: “Our current business is in trouble, so please ignore that and buy shares of our intentions.”
The concall in February 2026 revealed something interesting: management is neither panicking nor claiming victory. They’re doing that rare thing — admitting the present is painful while betting on the future. No CEO theatre, no “best quarter ever” nonsense. Just: “Tariffs suck. FTAs with EU/UK might help. North Carolina factories are expensive. But we’re sticking to plan.” That’s either bravery or desperation. The balance sheet will tell us which.
Concall Insight (Feb 2026): “Our objective is to get back to 15%, 16% EBITDA margins. That’s our goal.” Translation: We’re at 9-10% now, and every percentage point is made of sand and American tariff pain. —Indo Count Management
03 — Business Model: WTF Is a Bed Linen Company, Really?
They Make The Sheets Your Airbnb Host Buys At Bulk Discount
Indo Count doesn’t make fashion. It makes function. Specifically: bed sheets, pillowcases, comforters, duvets, quilts, and institutional bedding. Not sexy. Not life-changing. But essential — because every bed needs covering, from a Manhattan penthouse to a Walmart shelf in rural Ohio.
The business model is radically simple. Buy cotton (30-35% imported), add locally sourced yarn and fabric. Spin it at 140,000 spindles in Kolhapur, Maharashtra. Process it at 153 million meters annual capacity across two manufacturing plants. Ship 97.75% of output to 50+ countries, with the U.S. taking 69% of export revenue. Walmart, Target, Bed Bath & Beyond (RIP), and other majors then put your sheets on their shelves. Every order is placed weeks in advance, giving ICIL precious visibility into demand.
Revenue concentration is extreme: Walmart alone is 20% of revenue. Top 5 customers account for 50%. This is both a strength and a knife — you get scale leverage, but also total customer power. One bad quarter and Walmart reduces orders. One tariff hike and Walmart passes the cost to Indo Count first, retail consumers third.
US Beds~20%Market Share
Global#1Bed Linen Exporter
Processing Capacity153 MMMeters/Year
Domestic Reach2,000+MBO Outlets
The New Business Gambit: In 9M FY26, new businesses (Utility Bedding + U.S. Brand Business) contributed 20% of topline and grew 16% QoQ to ₹210 crore (~USD 100 million annualized). The company just commissioned a 18-million-pillow greenfield plant in Kernersville, North Carolina in January 2026. This is management’s answer to tariffs: don’t export sheets, manufacture pillows locally. Genius. Expensive. Required right now.
💬 Real question: Can a 30-year export machine retool to become a U.S. manufacturer without bankrupting itself? Drop your thoughts.
04 — Financials Overview
Q3 FY26: The Numbers That Taste Like Tequila
Result type: Quarterly Results | Q3 FY26 EPS: ₹1.23 | Annualised EPS (Q3×4): ₹4.92 | Industry P/E Median: 20.7x | ICIL P/E: 40.7x
| Metric (₹ Cr) |
Q3 FY26
Dec 2025 |
Q3 FY25
Dec 2024 |
Q2 FY26
Sep 2025 |
YoY % |
QoQ % |
| Revenue | 1,063 | 1,152 | 1,062 | -7.7% | +0.1% |
| Operating Profit | 91 | 146 | 104 | -37.7% | -12.5% |
| OPM % | 9% | 13% | 10% | -400 bps | -100 bps |
| PAT | 24 | 71 | 39 | -65.5% | -38.5% |
| EPS (₹) | 1.23 | 3.57 | 1.97 | -65.5% | -37.6% |
The Margin Confession: Operating margin fell from 13% (Q3 FY25) to 9% (Q3 FY26) — a 400-basis-point collapse in a single year. Management attributed this to (a) 50% U.S. tariff absorption via case-by-case discounts, (b) new business incubation costs (~150-200 bps), and (c) ~₹9.2 crore Labour Code one-time impact in Q3. Add those back and adjusted EBITDA margin was 10.4%. Still garbage compared to historical 15-16%. But the narrative holds: tariffs are hitting like a truck, and new businesses are expensive to build. The stock trades at a 2x premium to sector median P/E, betting that management can reverse this margin collapse. That’s not analysis. That’s faith.
05 — Valuation: Fair Value Range
What’s This Bedsheet Empire Actually Worth?
