ICICIDirect Sees Indo Count Doubling Revenues by FY28

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ICICIDirect’s research note says the world’s largest bed-linen maker is entering a new growth phase with strong brand portfolio expansion, UK trade deal benefits, and high-margin bedding segments driving a 2x revenue target by FY28.

By S JHA

Mumbai, October 22, 2025 — According to ICICIDirect’s latest stock conviction idea, Indo Count Industries (ICIL) — the world’s largest bed-linen manufacturer — is entering its next growth phase, powered by premium segment expansion, brand acquisitions, and favourable global trade dynamics.

Established in 1988, ICIL has evolved from a bed-linen exporter into a diversified textile brand with over 25 owned and licensed brands catering to markets across the US, UK, and Europe. The company operates seven manufacturing facilities — four in India and three in the US — with total capacity of 153 million meters and 32.5 million pieces annually.

Under its “ICIL 2.0” strategy, the company is focusing on scaling its core operations, expanding into high-margin utility and fashion bedding, and strengthening its branded product portfolio. “ICIL expects its branded and utility bedding segments to contribute an additional US$275 million over the next three years, driving its goal to double revenues by FY28,” stated the research note of the brokerage firm.

The note highlights that recent US tariff pressures may temporarily affect growth in FY26, but ICICIDirect expects a strong rebound post-2026, supported by expected trade deals with the US and UK. India currently holds 46% of US bedsheet imports, giving ICIL a competitive edge in global markets.

ICICIDirect projects 22% CAGR in revenue and 45% CAGR in EBITDA between FY26–28. Following a 34% stock correction, ICIL trades at 17x/12x its FY27E/FY28E earnings, presenting a favourable risk-reward setup. The brokerage has assigned a BUY rating with a target price of ₹370, valuing the stock at 15x average FY27–28 EPS.

ICIL’s latest acquisitions of Fluvitex USA and Modern Home Textile USA, along with its upcoming greenfield project in North Carolina, are expected to add substantial capacity and strengthen its position in the US utility bedding market.

Globally, the home textile market, valued at US$125 billion in 2023, is projected to grow at 6% CAGR through 2030, led by rising consumer preference for branded, sustainable, and premium-quality products.

Shares of Indo Count gained 3% on Tuesday to close at ₹269. The stock is trading at a PE multiple of 25.9, while the face value is ₹2. The market capitalisation currently stands at ₹5328 crores.

(This article makes no recommendation for buy or sell of shares of any company)