Sheela Foam Limited , a leading manufacturer of foam-based products, has reported mixed financial results for the quarter ended September 30, 2025.

Financial Performance

Revenue

Sheela Foam's consolidated revenue from operations for the quarter stood at ₹874.94 crore. On a standalone basis, the company reported revenue from operations of ₹566.60 crore, slightly down from ₹574.75 crore in the previous quarter.

Profit

The company's consolidated profit after tax for the quarter was ₹9.96 crore. On a standalone basis, profit after tax declined to ₹5.65 crore from ₹10.70 crore in the previous quarter, representing a decrease of approximately 47.20%.

Exceptional Losses

Sheela Foam recorded exceptional losses of ₹7.84 crore due to the sale of certain land and buildings in Uttarakhand and Bangalore, which impacted the overall profitability for the quarter.

Corporate Developments

Amalgamation Scheme

The Board of Directors approved the amalgamation scheme of subsidiary Kurlon Enterprises Limited, which was sanctioned by the National Company Law Tribunal on September 17, 2025.

Financial Ratios

For the quarter, Sheela Foam reported the following key financial ratios:

These ratios indicate potential challenges in the company's short-term liquidity and debt servicing capacity.

Outlook

While Sheela Foam faces challenges in maintaining profitability, the approval of the amalgamation scheme with Kurlon Enterprises Limited may contribute to long-term growth and value creation for shareholders. The company's ability to improve its financial ratios and manage exceptional losses will be crucial for its future performance.

Sheela Foam Limited has achieved a significant milestone in its corporate restructuring efforts. The National Company Law Tribunal (NCLT) Mumbai Bench has given its stamp of approval to a comprehensive Composite Scheme of Arrangement involving Sheela Foam and five other companies on September 17, 2025.

Scheme Details

The approved scheme encompasses a complex series of mergers:

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

These five entities will first amalgamate into Kurlon Enterprise Limited, which will subsequently merge into Sheela Foam Limited. This arrangement has been sanctioned under sections 230 to 232 of the Companies Act, 2013, covering the companies along with their respective shareholders and creditors.

Implementation Timeline

According to the company's disclosure to the stock exchanges, the scheme will become effective upon filing the certified copy of the NCLT order with the Registrar of Companies, Mumbai. Sheela Foam is currently awaiting the certified true copy of the order sanctioning the scheme.

Management's Communication

Md. Iquebal Ahmad, Company Secretary and Compliance Officer of Sheela Foam Limited, stated in the regulatory filing, "The pronouncement order of the Hon'ble NCLT is now available on its website at https://nclt.gov.in/ as of September 18, 2025, and also on the Company's website at https://www.sheelafoam.com/shareholder-information ."

Investor Engagement

In a separate announcement, Sheela Foam has also scheduled a series of investor and analyst meetings from September 23 to September 26, 2025. These meetings, a mix of in-person and online interactions, demonstrate the company's commitment to maintaining open lines of communication with its stakeholders during this transformative period.

Conclusion

This NCLT approval marks a crucial step in Sheela Foam's corporate restructuring strategy. The amalgamation is expected to streamline operations, potentially leading to improved efficiencies and synergies across the merged entities. Shareholders and market observers will be keenly watching how this consolidation impacts the company's future performance and market position in the foam and sleep products industry.

As the implementation of the scheme progresses, Sheela Foam Limited is likely to provide further updates to its shareholders and the market at large.