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).

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.