Mixed quarter: revenue grew 5.8% YoY to ₹1,088 Cr, driven by new businesses, but core business volume declined low-teens and PAT was flat QoQ at ₹24 Cr due to higher depreciation and interest from US investments. quarter Investor Presentation One-Pager? Jun 2026

Revenue

₹1,088 Cr

+5.8% YoY; new businesses doubled to ~$90M annualized run-rate

EBITDA Margin

10.7%

+140bps YoY; recovery from 9.5% in Q3 FY26, but still below FY25 full-year margin of 13.8%

PAT

₹24 Cr

+15% YoY, but -0.9% QoQ; flow-through constrained by higher depreciation (₹43 Cr) and finance costs (₹44 Cr)

Volume (Mn Mtrs)

20.5

-13% QoQ; full-year volume 94.1 Mn, down 12% from FY25's 106.4 Mn; core business protected market share but lost volumes

What Went Right

New businesses (Utility Bedding + USA Brands) revenue scaled to ₹792 Cr in FY26, up ~2.8x from ₹285 Cr in FY25; Q4 alone contributed ₹270 Cr, up 49% QoQ.
EBITDA margin expanded QoQ to 10.7% from 9.5%, driven by better product mix, fixed-cost absorption in new US plants, and favourable exchange rates.
No loss of any customer or order despite US tariff volatility; management maintained market share in core bed linen.
ESG S&P Global score jumped from 45 to 78 over two years, now top 3 percentile globally in Textiles, Apparel & Luxury Goods.
Net debt/equity remained manageable at 0.32x; operating cash flow was strong at ₹573 Cr in FY26 (vs ₹394 Cr in FY25).

What to Watch

Core business revenue fell low-teens in FY26 due to US tariff uncertainty, with volumes dropping 12% to 94.1 Mn meters from 106.4 Mn in FY25.
Full-year EBITDA margin dropped sharply to 11.0% from 13.8% in FY25, reflecting tariff sharing with customers, incubation costs in new businesses, and under-absorption of fixed costs.
PAT halved to ₹127 Cr in FY26 (vs ₹250 Cr in FY25) as higher depreciation (₹292 Cr vs ₹215 Cr) and finance costs weighed; Q4 PAT flat QoQ despite EBITDA growth.
Q4 volume declined 13% QoQ to 20.5 Mn meters, indicating sustained softness in the core business; sequential recovery remains uncertain.
Macro environment remains volatile: US tariff levels fluctuated from 10% to 50% and back to 10% during FY26, and West Asia conflict poses additional risk.

Management Guidance

Target ~30%+ revenue growth in FY27 to ~₹5,500 Cr with ~13% EBITDA margin.
Core business expected to grow >16% to ~₹4,000 Cr; new businesses to double to ~₹1,500 Cr.
Incremental revenue addition of ~₹1,300 Cr in FY27 – a record for the company.
Reaffirmed aspiration to double revenue by 2028 over FY25 base, with brands and utility bedding contributing ~$275M (vs $90M in FY26).
Full-year FY27 volume target of 105-110 Mn meters (up from 94.1 Mn in FY26).

Investor Lens

The investment thesis rests on ICIL's transformation from a pure bed linen exporter to a multi-category, brand-led home textile player with on-shore US manufacturing. Q4 FY26 showed progress: new businesses reached $90M annualized run-rate and EBITDA margins recovered QoQ. However, core business volumes continue to decline and full-year profitability (EBITDA margin 11%, PAT halved) remains weak. The FY27 guidance of ₹5,500 Cr revenue and 13% EBITDA margin is ambitious, implying a sharp V-shaped recovery. Investors should watch: (1) US tariff clarity and order momentum, (2) ramp-up of the three US plants (currently ~65% utilization), (3) debt reduction trajectory, and (4) whether new brand/license revenues (Wamsutta, Tommy Hilfiger) can drive sufficient mix shift to offset core weakness.

From investor presentation · AI-generated analysis · Not investment advice

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📊 MIXED Revenue up 3%, but OPM slips to 8%; PAT up 14% aided by other income.

Revenue

Revenue stood at ₹1,058 Cr, marginally up 3.4% year-on-year but flat (-0.5%) sequentially. The modest YoY growth indicates subdued demand traction.

Profitability

Net profit rose 14.3% YoY to ₹24 Cr, supported by a sharp increase in other income (₹30 Cr). EPS improved to ₹1.22 from ₹1.06 in the year-ago quarter.

Margins

Operating profit margin contracted to 8% from 9% both YoY and QoQ, reflecting cost pressure. The absolute operating profit fell 4.4% YoY despite revenue growth.

Cash Flow

No cash flow data provided for this period.

Balance Sheet

Total borrowings stood at ₹1,342 Cr against reserves of ₹2,316 Cr, resulting in a debt-to-equity ratio of 0.54. The high absolute debt level remains a monitorable.

Key Risks

High PE ratio of 54.4 implies stretched valuation relative to earnings. Margin compression and elevated borrowings (~₹1,342 Cr) pose profitability and interest cost risks.

Outlook

Sustained volume growth is essential to reverse margin decline. Interest cost and debt management will be critical for future profitability.

Generated by AI · Mar 2026 results · Not investment advice

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