Sheela Foam Limited announced its audited standalone and consolidated financial results for the quarter and year ended March 31, 2026. The board, in its meeting held on May 14, 2026, approved the results and recommended a final dividend of ₹1 per equity share, representing 20% of the face value of ₹5 each, for the financial year 2025-26. The dividend payment is subject to shareholder approval at the ensuing Annual General Meeting. The auditors have provided an unmodified opinion on the annual audited standalone and consolidated financial results.

FY26 Financial Performance

Sheela Foam delivered a strong full-year performance, achieving its highest-ever turnover and EBITDA in its history. On a consolidated basis, the company reported a net profit (PAT) of ₹161 cr for FY26, a 78% increase from ₹90 cr in FY25. Total consolidated revenue from operations grew 11% year-on-year to ₹3,821 cr from ₹3,439 cr. Core EBITDA expanded 46% to ₹414 cr from ₹283 cr, with margins improving by 261 bps to 10.8% from 8.2%, supported by incremental sales, integration benefits, improved gross margins, and operating leverage. Consolidated Cash EPS for FY26 stood at ₹35.2. On a standalone basis, net profit for the year stood at ₹131 cr, up from ₹93 cr in the corresponding period, while standalone revenue from operations increased to ₹2,962 cr from ₹2,675 cr, with standalone Core EBITDA rising 46% to ₹318 cr from ₹217 cr, at a margin of 10.7%.

The following table summarizes the consolidated financial performance for FY26 and Q4 FY26:

Q4 FY26 Highlights

The fourth quarter demonstrated particularly strong momentum across both business segments. On a consolidated basis, revenue grew 24% year-on-year to ₹1,050 cr from ₹850 cr. EBITDA for Q4 came in at ₹1.16B rupees compared to ₹330M in the year-ago period, with EBITDA margin at 11.11% versus 3.88% year-on-year. Core EBITDA surged 90% to ₹121 cr from ₹64 cr, with margins expanding by 400 bps to 11.5% from 7.5%, supported by higher volumes, improved gross margins, and operating leverage. Consolidated net profit for Q4 came in at ₹92 cr versus ₹13 cr in the year-ago period, with PAT margin at 8.7% compared to 1.6%. Cash EPS for the quarter stood at ₹14.2. On a standalone basis, Q4 Core EBITDA rose 91% to ₹94 cr from ₹49 cr, with margins expanding to 11.5% from 7.4%, while standalone PAT came in at ₹76 cr versus ₹14 cr, at a PAT margin of 9.3%.

The following table presents the key Q4 consolidated and standalone metrics:

Segment Performance

The mattress and foam segments both recorded robust volume growth across the full year and the fourth quarter. In Q4 FY26, total mattress volumes grew 13% year-on-year to 914K units from 809K units, while total foam volumes surged 34% to 14,975 Tn from 11,171 Tn. Within the foam segment, Comfort Foam volumes rose 38% to 7,997 Tn, Technical Foam grew 37% to 5,589 Tn, and Furniture Cushioning increased 7% to 1,389 Tn. For the full year FY26, mattress volumes grew 12% year-on-year and foam volumes grew 18% year-on-year. Both Sleepwell and Kurlon brands delivered strong growth during the year, reflecting the benefits of the Kurlon acquisition and its integration with Sheela Foam.

The following table outlines Q4 FY26 segment-wise volume performance:

Geographical Revenue Breakdown

On a consolidated basis, the group's revenue from operations for FY26 was split between domestic and international markets. Revenue from within India stood at ₹2,974.70 cr, while revenue from outside India amounted to ₹846.14 cr. For Q4 FY26, domestic revenue was ₹825.08 cr and international revenue was ₹224.98 cr. The group's non-current assets as at March 31, 2026 were ₹2,950.96 cr within India and ₹855.95 cr outside India, reflecting its multinational operating footprint across Asia, Australia, and Europe.

The following table presents the geographical revenue breakdown:

Returns and Profitability Metrics

Sheela Foam's investor presentation highlighted strong cash return metrics for FY26, underscoring the business's ability to convert earnings into shareholder value. On a standalone basis, Cash RoCE stood at 21%, while consolidated Cash RoCE came in at 18%. Cash RoE was 10% on a standalone basis and 12% on a consolidated basis, compared to a reported RoE of 5% on both bases. The standalone gross margin for Q4 FY26 stood at 43.4%, compared to 43.1% in Q4 FY25, with margins trending through 44.5% in Q1 FY26, 43.9% in Q2 FY26, and 40.5% in Q3 FY26.

The following table summarizes the key returns and profitability metrics for FY26:

Key Consolidated Financial Metrics

The audited consolidated financial statements reflect the full-year performance in detail. Total income for FY26 stood at ₹3,875.11 cr compared to ₹3,570.12 cr in FY25, while total expenses were ₹3,701.20 cr against ₹3,497.38 cr. Consolidated net cash flow from operating activities for FY26 was ₹409.32 cr, up from ₹247.39 cr in FY25. The group's consolidated net worth as at March 31, 2026 stood at ₹3,260.25 cr versus ₹3,024.15 cr a year earlier. Outstanding unsecured non-convertible debentures stood at ₹362.50 cr as at March 31, 2026, reduced from ₹725.00 cr in the prior year. The consolidated debt equity ratio improved to 0.28 from 0.48, and the interest service coverage ratio improved to 2.83 from 1.60.

The following table summarizes the key consolidated financial metrics for FY26:

Notable Corporate Developments

During FY26, the company completed the amalgamation of Kurlon Enterprise Limited (KEL) and its subsidiaries with Sheela Foam Limited, as approved by the National Company Law Tribunal (NCLT), Mumbai, vide order dated September 17, 2025, with an appointed date of October 20, 2023. The scheme was accounted for under Appendix C (Business Combinations of Entities under Common Control) of Ind AS 103, with comparative periods restated from April 1, 2024. Additionally, effective January 1, 2026, the company changed its depreciation method from Written Down Value (WDV) to Straight Line Method (SLM), and reassessed the useful life of certain plant and machinery from 20 years to 40 years. This change resulted in depreciation expense for the quarter and year ended March 31, 2026 being lower and profit before tax being higher by ₹14.37 cr on a consolidated basis. The results for FY26 also include a net exceptional gain of ₹7.93 cr on account of the sale of certain land and buildings. The company's equity stake in House of Kieraya Limited (Furlenco) was reduced to 34.53% during FY26 following a fresh issuance of 83,72,392 equity shares by House of Kieraya Limited, out of which the company subscribed to 20,09,377 equity shares.

Digital and E-Commerce Growth

Sheela Foam's digital channels recorded strong traction in FY26. E-commerce sales grew 39% year-on-year on platforms, while Brand.com sales surged 136% year-on-year. The Kurlon brand activated approximately 125 creators across Instagram and YouTube in Q4, generating total video views of 15 million, a cumulative reach of 7 million, and a high engagement rate of 4%. The Kurlon World Sleep Day campaign generated a total of 10 million views. New product launches during the period included Nexa Plus and FitRest Plus.

Management Commentary

Commenting on the results, Mr. Rahul Gautam, Chairman & Managing Director, said that fiscal year 2026 has been a year of realising the benefits of the Kurlon acquisition and its integration with Sheela Foam. Both Sleepwell and Kurlon brands delivered strong growth, while the foam segment also recorded commendable momentum. This broad-based performance has translated into healthy growth across both revenue and profitability. He noted that the company has achieved its highest-ever turnover and EBITDA in its history, reflecting the strength of the integrated platform, focused execution, and continued commitment to profitable growth.

About Sheela Foam Limited

Leading the science of comfort in three continents, Sheela Foam is an Indian multinational company. Among the most R&D-focused foam manufacturers globally, Sheela Foam is a leading producer of polyurethane (PU) foam operating across Asia, Australia, and Europe. Founded in 1971, the company has always focused on delivering comfort to its consumers through its products. In India, its flagship brands — Sleepwell and Kurlon — serve the comfort needs of over a billion people, reaching all states through a network of 11,000+ retail touchpoints. Sheela Foam has also taken diverse initiatives for emotional wellness and multi-dimensional skill development under the Sleepwell Foundation.

Earnings Conference Call

Following the announcement, the company held an investor/analyst conference call on May 15, 2026, at 04:00 PM IST to discuss the financial results. The call was facilitated by Investec Capital Services (India) Private Ltd and led by Ritesh Shah, Co-Head of Research at Investec India. Senior management, including Chairman & MD Rahul Gautam and Group CFO Amit Kumar Gupta, participated in the call. The audio recording of the conference call held on May 15, 2026 has been made available by the company under Regulation 30, and the link to the recording has been filed with the exchanges. The transcript is also available on the company's website.

The following table provides the conference call access details:

Note: FY25 Core EBITDA includes ₹35 cr paid by KCPL (erstwhile owner of KEL) against working capital/inventory due to quality issues, classified under 'other income' in financial statements.

Source: Company/INE916U01025/eddee8aaa615463f.pdf

Sheela Foam Limited has announced a series of director appointments and re-appointments following its Board meeting on May 14, 2026. The decisions, based on the recommendations of the Nomination & Remuneration Committee, are subject to shareholder approval. The company will induct three new Independent Directors and extend the terms of its Chairman, Managing Director, and other Whole-Time Directors. The intimation was submitted pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

New Independent Director Appointments

The Board approved the appointment of three individuals as Additional Directors in the category of Independent Director, all effective from June 06, 2026. Ms. Hiroo Mirchandani and Mr. Rajeev Srivastava are appointed for a term of five years, while Mr. Sudhir Shenoy is appointed for three years. All three appointees are confirmed to be unrelated to any existing Directors of the company and are not debarred from holding the office of Director by any SEBI order or other authority.

Profiles of Newly Appointed Independent Directors

Ms. Hiroo Mirchandani holds a bachelor's degree in commerce from Shri Ram College of Commerce and an MBA from the Faculty of Management Studies, University of Delhi. She is also a Chevening Gurukul scholar from the London School of Economics and Political Science and holds certifications in ESG and sustainability. She brings three decades of operational experience in customer-facing businesses and over a decade of board experience across consumer goods, healthcare, telecom, financial services, and hospitality. Prior to her board career, she held roles in Sales, Marketing, and P&L management at Asian Paints, Dabur, World Gold Council, and Pfizer.

Mr. Rajeev Srivastava is a seasoned global executive with over four decades of leadership experience across technology, logistics, and energy sectors, with a track record of managing P&Ls exceeding USD 2 billion in India, USD 15 billion across Asia Pacific & Japan, and USD 10 billion across 40+ emerging markets. He is the Co-Founder and CEO of CoreOps.AI and previously served as Managing Director and Board Member of Redington Group and as MD & CEO of Indian Energy Exchange (IEX). He holds a Bachelor's degree in Mechanical Engineering (Honours) from BITS Pilani and a Diploma in International Business from Helsinki School of Management.

Mr. Sudhir Shenoy holds a bachelor's degree in chemical engineering and a master's degree in marketing management. He has over 35 years of experience in the chemicals and materials science industry, including senior leadership roles at Dow as Country President & CEO of Dow India and Senior Vice President at EQUATE Petrochemical Company. He has also served as Chair of the American Chamber of Commerce and Co-Chair of the Confederation of Indian Industry.

Re-appointments of Key Managerial Personnel

The Board also approved the re-appointment of four senior personnel for a five-year term effective from April 01, 2027, subject to shareholder approval. Mr. Rahul Gautam has been re-appointed as Chairman and Managing Director. Ms. Namita Gautam and Mr. Rakesh Chahar have been re-appointed as Whole-Time Director and Deputy Managing Director (Whole Time Director), respectively. Mr. Tushaar Gautam has been re-appointed as Vice Chairman and Joint Managing Director. Notably, Mr. Rahul Gautam, Ms. Namita Gautam, and Mr. Tushaar Gautam are related — Mr. Rahul Gautam is the husband of Ms. Namita Gautam and the father of Mr. Tushaar Gautam.

Summary of All Appointments

The table below summarises the key details of all personnel changes approved by the Board: