Sheela foam Limited's Board of Directors concluded their scheduled meeting on March 2, 2026, without declaring an interim dividend for the financial year 2025-26. The board decided to deliberate on dividend matters in due course, as communicated to both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) under regulatory compliance requirements.

Board Meeting Outcome and Timeline

The board meeting, which was previously announced on February 24, 2026, took place as scheduled to consider the declaration of an interim dividend. However, after deliberations, the board chose not to declare any interim dividend at this time. The meeting had an extended duration, commencing at 09:45 AM and concluding at 07:00 PM, indicating thorough discussions on the matter.

Regulatory Compliance and Communication

The outcome notification was issued in accordance with Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015. This regulation mandates listed companies to inform stock exchanges about material developments and board meeting outcomes that could impact investor decisions.

Corporate Structure and Contact Information

Sheela Foam Limited maintains its operational headquarters at Sleepwell Tower, Sector 135, Noida, while the registered office is located in Mumbai, Maharashtra. The company continues to be listed on both major Indian stock exchanges with established trading identifiers.

The board's decision to defer dividend deliberations suggests a cautious approach to capital allocation, with the company indicating that dividend considerations will be revisited at an appropriate time during the financial year.

Sheela Foam has announced strong financial results for the third quarter, demonstrating significant growth across profitability, revenue, and operational efficiency metrics. The foam and mattress manufacturer's performance reflects robust operational execution and improved margins during the quarter, with management providing comprehensive updates during their Q3 FY26 earnings conference call held on February 4, 2026.

Comprehensive Financial Performance

The company's Q3 results showcase impressive growth across all key financial parameters:

Profitability and Operational Excellence

The most striking aspect of Sheela Foam's Q3 performance was the dramatic improvement in profitability metrics. Consolidated net profit reached ₹521 million, representing a substantial increase from ₹167 million recorded in the same quarter of the previous year. This translates to an exceptional 212% year-on-year growth, indicating strong margin expansion and operational efficiency improvements.

Consolidated core EBITDA continues to be in double digit at 10.9% for Q3, expanding by 220 basis points year-on-year, growing from ₹84 crores to ₹117 crores. The company's cash PAT, defined as PAT plus depreciation plus non-cash taxes, stood at ₹209 crores for the last 9 months, translating into a cash EPS of approximately ₹19 per share.

Business Segment Performance and Growth Drivers

The company demonstrated strong volume growth across key segments during the quarter. Mattress volumes grew by 11% year-on-year for the 9-month period, while foam volumes saw substantial growth of 20% in Q3 and 12% for the 9 months. The unorganized to organized business segment grew by nearly 100% over the last 9 months, reaching a turnover of ₹75 crores and achieving a run rate of ₹120 crores.

Kurlon Integration and Synergies

Management confirmed that the merger of Kurlon is now complete with all requisite filings made with the Registrar of Companies. The integration has delivered significant value, with Kurlon emerging as a major turnaround for the group. Prior to acquisition, Sheela Foam maintained EBITDA margins between 10-11%, while Kurlon's EBITDA was in mid-single digits. The combined Indian operations have now achieved a consolidated core EBITDA of 10% for the last 9 months.

The company has realized approximately ₹200 crores in synergies till the last quarter, with the remaining ₹30-40 crores expected to be implemented by the end of the current financial year through new machinery installation and material introduction.

International Operations and Strategic Initiatives

Both Australia and Spain businesses delivered marked improvement with EBITDA margins of around 12% in Q3 and approximately 10% for the first 9 months. The GCC region expansion continues with local manufacturing commenced through partnerships with UAE-based manufacturers, while digital presence has been strengthened across platforms including Amazon and noon.com.

Furlenco, the company's furniture rental subsidiary, received ₹125 crores in equity funding at a valuation of ₹1,050 crores, with Sheela Foam participating with ₹30 crores alongside new investors. Furlenco currently operates at an annualized revenue run rate of ₹400 crores and delivered a PAT of ₹18 crores for the first 9 months.

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