Indo Count Inds. Q2 FY27 Results (NSE: ICIL)
Signal: Margin expansion
The read
The key inflection is a return to margin expansion after four consecutive quarters of YoY OPM contraction: consolidated EBITDA margin rose 417bps YoY to 13.9% as revenue accelerated 57.5%, EBITDA grew 124.8% and fixed-cost intensity eased, although gross margin still compressed 261bps and the asset-base check is mixed.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,672.65 Cr | +57.5% | +38.6% |
| EBIT | ₹186.65 Cr | +189.6% | |
| Net profit | ₹131.88 Cr | +237.9% | |
| EPS | ₹6.66 | +238.1% | |
| EBIT margin | 13.9% |
P&L walk
Consolidated revenue rose to ₹1,67,265.35 lakh, +57.5% YoY and +38.6% QoQ, while EBITDA grew 124.8% YoY to ₹23,301.20 lakh and margin expanded 417bps to 13.9%; PAT growth to ₹13,187.68 lakh was amplified by operating recovery and lower effective tax intensity.
Segments
The group reports a single textile segment; consolidated Q2 revenue of ₹1,67,265.35 lakh was 46.9% above standalone revenue of ₹1,13,866.25 lakh, showing that subsidiaries materially lifted reported growth.
Key positives
- Consolidated revenue reached ₹1,67,265.35 lakh, up 57.5% YoY and 38.6% QoQ, materially reaccelerating from ₹1,06,213.79 lakh a year ago.
- EBITDA grew 124.8% YoY to ₹23,301.20 lakh versus revenue growth of 57.5%, with margin expanding 417bps to 13.9%; employee cost grew 55.2%, depreciation 18.3% and finance cost 15.1%.
- Raw-material cost declined to 42.2% of revenue from 46.9% despite 57.5% revenue growth, indicating partial cost pass-through, although gross margin still compressed.
- Net debt fell ₹22,706.89 lakh from March 2026 to ₹73,302.71 lakh, while cash flow from operations was ₹38,198.32 lakh in H1FY27.
Key concerns
- Gross margin fell 261bps YoY to 50.3% despite raw-material cost declining to 42.2% of revenue; the filing does not disclose whether mix, pricing or other input factors caused the compression.
- Inventory rose to ₹1,42,489.43 lakh from ₹1,25,086.71 lakh at March 2026 and trade receivables rose to ₹55,511.78 lakh from ₹51,295.93 lakh, absorbing working capital despite reported profit growth.
- PPE declined 2.4% while depreciation rose 18.3% YoY; the concurrent CWIP increase to ₹1,228.53 lakh warrants monitoring of asset additions and depreciation timing.
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