Mukul Agrawal-Held Small-Cap Stock Jumps 13%; Margins Exceed Guidance, Company Targets 2x Revenue by FY28

Indo Count Industries a smallcap stock has been broadening its home-textile platform beyond bed linen through utility bedding and the Wamsutta brand business in the United States. The strategy delivered a sharp acceleration in the September quarter, with the company reporting its highest-ever quarterly and half-yearly total income in financial year 2026-27 (FY27).

Consolidated total income rose 57 per cent YoY to Rs 1,699 crore in Q2 FY27, while income for the first half increased 43 per cent to Rs 2,923 crore. Quarterly sales volume stood at 28 million metres, taking first-half volume to 51 million metres, or 49 per cent of the company’s FY27 guidance of 105-110 million metres.

Earnings before interest, Tax, depreciation and amortisation (EBITDA) more than doubled to Rs 259 crore in Q2 from Rs 123 crore a year earlier. EBITDA margin expanded by 380 basis points to 15.3 per cent. For H1 FY27, EBITDA rose 73 per cent to Rs 420 crore and the margin improved to 14.4 per cent, above the company’s full-year guidance of around 13 per cent.

Profit before tax increased 239 per cent YoY to Rs 176 crore, while profit after tax rose 238 per cent to Rs 132 crore. Earnings per share increased to Rs 6.66 from Rs 1.97. The improvement was also sequential, with Q2 income rising 39 per cent QoQ and EBITDA growing 62 per cent from the June quarter.

New businesses generated more than Rs 500 crore of quarterly revenue and accounted for 30 per cent of Q2 income. In H1, their contribution rose to 30 per cent from 15 per cent a year earlier, while the core bed-linen business accounted for the balance. Indo Count said market-share gains, higher customer wallet share, branded-product traction and better asset utilisation supported growth and margins.

The company has also extended Wamsutta beyond direct-to-consumer channels into the wider US retail market. Net debt fell to a record low of Rs 518 crore, taking net debt-to-equity to 0.2 times. Management said first-half progress positions it to exceed its FY27 income and margin guidance, though export demand, US trade conditions and execution in newer businesses remain important variables.

As of 2:20 pm on November 4, 2026, Indo Count shares were trading at Rs 530. The stock was up 13 per cent from the previous close of Rs 467.25 and stood above its stated 52-week high of Rs 476.25. Over the past year, the shares have gained 73.70 per cent, compared with a 5.73 per cent decline in the BSE 500. 

What This Means for Investors

The first-half performance strengthens the evidence that Indo Count’s expansion into utility bedding and branded US products is becoming financially meaningful. New businesses delivered 30 per cent of H1 income, double their contribution a year earlier, while EBITDA margin exceeded the company’s full-year target despite higher depreciation and finance costs. Lower net debt also gives the company more flexibility as it scales manufacturing and distribution infrastructure in the United States.

The key issue is whether this margin improvement can be sustained through the second half as the new businesses mature. Management’s revenue targets appear well supported by first-half execution, with 52 per cent of annual income guidance already achieved. However, export concentration, US trade-policy changes, raw-material costs and the ramp-up economics of newer facilities can still affect profitability. At 61.33 times trailing earnings, the market valuation places considerable weight on continued growth, margin discipline and successful conversion of new-business revenue into durable earnings.

Disclaimer: The article is for informational purposes only and not investment advice.