Sheela Foam Reports Robust Q2 FY26 Performance with Double-Digit EBITDA Margins
Sheela Foam Limited reported robust Q2 FY26 results with consolidated revenue growing 5% year-on-year to Rs. 1,696.00 crores. Core EBITDA increased by 31% to Rs. 177.00 crores. Mattress business volume grew by 13% in Q2, with Sleepwell and Kurlon brands growing by 14% and 13% respectively. The company added 420 new showrooms in H1 FY26 and plans to add 380 more by year-end. E-commerce segment showed significant growth, targeting revenue of Rs. 200.00-250.00 crores for FY26. The Kurlon merger received NCLT approval, effective October 20, 2023. Furlenco investment is yielding positive results with a PAT of Rs. 9.00 crores in H1 FY26. International operations in UAE, Australia, and Spain are expanding. The company aims to increase B2C business share, grow e-commerce presence, and reduce debt through asset monetization and cash flow generation.
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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).
Historical Stock Returns for Sheela Foam
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +1.71% | +2.08% | -15.93% | -2.48% | -28.25% | -23.52% |
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