Sheela Foam Reports Robust Q2 FY26 Performance with Double-Digit EBITDA Margins

Sheela Foam Limited , a leading manufacturer of mattresses and foam products, has reported strong financial results for the second quarter and first half of fiscal year 2026, demonstrating resilient growth across its business segments.

Financial Highlights

Consolidated revenue grew by 5% year-on-year to Rs. 1,696.00 crores in Q2 FY26.
Core EBITDA increased by 31% to Rs. 177.00 crores, with margins exceeding 10% on a consolidated basis.
The mattress business volume grew by 13% in Q2, with Sleepwell and Kurlon brands growing by 14% and 13% respectively.
For H1 FY26, mattress volumes increased by 11%, while the foam business registered 8% volume growth.

Operational Performance

Sheela Foam has been actively expanding its retail presence:

Added 420 net new showrooms in H1 FY26.
Plans to add another 380 showrooms by the end of FY26, targeting a total of 800 new outlets for the year.

The company's e-commerce segment has also shown significant growth:

E-commerce revenue for FY25 was Rs. 173.00 crores (Rs. 200.00 crores at dealer price).
Targeting e-commerce revenue of Rs. 200.00-250.00 crores (Rs. 280.00-290.00 crores at dealer price) for FY26.

Strategic Developments

Kurlon Merger

The merger of Kurlon with Sheela Foam received final NCLT approval, effective October 20, 2023. This strategic move is expected to unlock synergies and drive growth.

Furlenco Investment

Sheela Foam's investment in Furlenco is showing promising results:

Furlenco achieved a PAT of Rs. 9.00 crores in H1 FY26.
Currently operating at an exit revenue run rate above Rs. 350.00 crores per annum.
Furlenco is raising Rs. 125.00 crores in equity, with Sheela Foam contributing Rs. 30.00 crores to limit dilution.

International Expansion

UAE operations have expanded to seven outlets, one in each emirate.
Australian and Spanish subsidiaries are approaching double-digit EBITDA levels.

Product Diversification

The company is focusing on expanding its product range, including the Tarang and Aaram mattress lines, which saw a 58% volume growth.

Outlook

Sheela Foam aims to:

Increase the share of B2C business, which currently stands at 55% of total revenue.
Grow its e-commerce presence, targeting a 30% market share in the organized online mattress market over the next few years.
Reduce debt significantly over the next 2-3 years through asset monetization and cash flow generation.

The company's focus on expanding its retail network, strengthening its e-commerce presence, and strategic investments positions it well for continued growth in the competitive mattress and foam market.

Note: All financial figures are in Indian Rupees (INR).

1 Day	5 Days	1 Month	6 Months	1 Year	5 Years
-2.09%	-4.12%	-3.89%	-17.69%	-43.66%	-42.50%

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.

Resolution Details	Type	Director
Change in designation to Chairman & MD	Special Resolution	Rahul Gautam (DIN: 00192999)
Change in designation to Vice Chairman & Joint MD	Ordinary Resolution	Tushaar Gautam (DIN: 01646487)

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:

Metric	Q2 FY26	Q2 FY25	YoY Change
Revenue from Operations	₹874.94 crore	₹812.71 crore	+7.66%
Net Profit	₹9.96 crore	₹20.24 crore	-50.79%
EBITDA	₹77.66 crore	₹102.16 crore	-23.98%

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.