Sheela Foam Limited , the company behind the popular Sleepwell mattress brand, has issued a postal ballot notice seeking shareholder approval for leadership changes while also reporting its financial results for the second quarter of fiscal year 2026.

Postal Ballot for Leadership Approval

The company has issued a postal ballot notice dated November 4, 2025, seeking member approval for changes in designation of key directors. The notice was sent to stock exchanges on December 30, 2025, with the cut-off date set as December 26, 2025.

The e-voting period commences from 10:00 AM on December 31, 2025, and ends at 5:00 PM on January 29, 2026. Mr. Amitabh (ICSI Membership No.14190), Partner, AVA Associates, Company Secretaries, New Delhi has been appointed as the Scrutinizer for the e-voting process.

Leadership Changes Already Implemented

The Board of Directors has already made key appointments effective November 4, 2025, following the NCLT-approved merger with Kurlon Enterprise Limited:

• Rahul Gautam appointed as Chairman and Managing Director
• Tushaar Gautam elevated to Vice Chairman and Joint Managing Director

These appointments came after the National Company Law Tribunal approved the merger order on October 30, 2025. The terms and conditions of their re-appointment, including tenure, remain unchanged as per shareholders' approval through postal ballot on January 25, 2024.

Financial Performance

For the quarter ended September 30, 2025, Sheela Foam reported mixed financial results:

The company's revenue from operations showed growth, increasing by 7.66% year-over-year. However, net profit declined significantly by 50.79% compared to the same quarter last year, while EBITDA decreased by 23.98%.

Segment Performance and Strategic Investments

Sheela Foam's geographical segment analysis reveals domestic revenue of ₹668.51 crore and international revenue of ₹206.43 crore, maintaining presence in both markets.

The company has also approved a subsequent investment in House of Kieraya Limited (Furlenco), subscribing to up to 20,09,377 new equity shares at ₹149.30 per share, for an aggregate consideration of up to ₹30 crore, further diversifying its interests in the furniture sector.

As Sheela Foam seeks formal shareholder approval for these leadership changes through the postal ballot process, stakeholders will be monitoring how these strategic decisions impact the company's future performance and market position.

Sheela Foam Limited , a leading manufacturer of foam products, has taken significant steps to implement a complex merger scheme involving multiple companies. The company's Board of Directors has constituted an Amalgamation Committee to oversee and execute a composite scheme of arrangement.

Merger Scheme Details

The scheme involves the merger of five companies into Kurlon Enterprise Limited, which will subsequently merge into Sheela Foam Limited. The companies to be merged are:

1. Belvedore International Limited
2. Kanvas Concepts Private Limited
3. Kurlon Retail Limited
4. Komfort Universe Products And Services Limited
5. Starship Value Chain and Manufacturing Private Limited

This multi-step merger process aims to consolidate operations and potentially streamline the company's structure.

Committee Formation and Authority

The newly formed Amalgamation Committee comprises members of the Board of Directors. It has been granted full authority to oversee, implement, and take all necessary actions related to the scheme's execution. This move demonstrates Sheela Foam's commitment to ensuring a smooth transition and effective implementation of the merger plan.

Regulatory Approval and Next Steps

The company has received approval for the scheme from the National Company Law Tribunal (NCLT), Mumbai Bench. Sheela Foam will inform the stock exchanges about the effective date of the scheme once the certified copy is filed with the Registrar of Companies.

Leadership Changes

In light of the merger, Sheela Foam has also announced changes to its top leadership:

• Mr. Rahul Gautam has been appointed as the Chairman and Managing Director of the company, effective immediately.
• Mr. Tushaar Gautam has been elevated to the position of Vice Chairman and Joint Managing Director.

These appointments are aimed at strengthening the operational leadership following the merger of Kurlon Enterprise Limited and its subsidiaries with Sheela Foam Limited.

Financial Performance

Sheela Foam reported the following consolidated financial results:

The company's performance reflects a challenging business environment, with a slight increase in revenue compared to the previous quarter but a decrease in profit.

Future Outlook

With the merger scheme in progress and new leadership in place, Sheela Foam appears to be positioning itself for potential growth and operational efficiencies. The company's ability to successfully integrate the merging entities and capitalize on potential synergies will be crucial for its future performance in the competitive foam and mattress market.