Sheela Foam has announced strong financial results for the third quarter, demonstrating significant growth across profitability, revenue, and operational efficiency metrics. The foam and mattress manufacturer's performance reflects robust operational execution and improved margins during the quarter, with management providing comprehensive updates during their Q3 FY26 earnings conference call held on February 4, 2026.
Comprehensive Financial Performance
The company's Q3 results showcase impressive growth across all key financial parameters:
| Metric: |
Q3 Current Year |
Q3 Previous Year |
Growth |
| Consolidated Net Profit |
₹521 million |
₹167 million |
212% |
| Revenue |
₹10.7 billion |
₹9.7 billion |
10.3% |
| EBITDA |
₹1.14 billion |
₹870 million |
31.03% |
| EBITDA Margin |
10.61% |
9% |
161 bps |
Profitability and Operational Excellence
The most striking aspect of Sheela Foam's Q3 performance was the dramatic improvement in profitability metrics. Consolidated net profit reached ₹521 million, representing a substantial increase from ₹167 million recorded in the same quarter of the previous year. This translates to an exceptional 212% year-on-year growth, indicating strong margin expansion and operational efficiency improvements.
Consolidated core EBITDA continues to be in double digit at 10.9% for Q3, expanding by 220 basis points year-on-year, growing from ₹84 crores to ₹117 crores. The company's cash PAT, defined as PAT plus depreciation plus non-cash taxes, stood at ₹209 crores for the last 9 months, translating into a cash EPS of approximately ₹19 per share.
Business Segment Performance and Growth Drivers
The company demonstrated strong volume growth across key segments during the quarter. Mattress volumes grew by 11% year-on-year for the 9-month period, while foam volumes saw substantial growth of 20% in Q3 and 12% for the 9 months. The unorganized to organized business segment grew by nearly 100% over the last 9 months, reaching a turnover of ₹75 crores and achieving a run rate of ₹120 crores.
| Business Segment: |
Performance Metrics |
| E-Commerce Growth |
53% YoY, ₹180 crores revenue |
| New Showrooms Added |
600 net additions in 9 months |
| U2O Dealer Network |
8,000 dealers across 5,000 towns |
| Foam Volume Growth |
20% in Q3, 12% for 9 months |
Kurlon Integration and Synergies
Management confirmed that the merger of Kurlon is now complete with all requisite filings made with the Registrar of Companies. The integration has delivered significant value, with Kurlon emerging as a major turnaround for the group. Prior to acquisition, Sheela Foam maintained EBITDA margins between 10-11%, while Kurlon's EBITDA was in mid-single digits. The combined Indian operations have now achieved a consolidated core EBITDA of 10% for the last 9 months.
The company has realized approximately ₹200 crores in synergies till the last quarter, with the remaining ₹30-40 crores expected to be implemented by the end of the current financial year through new machinery installation and material introduction.
International Operations and Strategic Initiatives
Both Australia and Spain businesses delivered marked improvement with EBITDA margins of around 12% in Q3 and approximately 10% for the first 9 months. The GCC region expansion continues with local manufacturing commenced through partnerships with UAE-based manufacturers, while digital presence has been strengthened across platforms including Amazon and noon.com.
Furlenco, the company's furniture rental subsidiary, received ₹125 crores in equity funding at a valuation of ₹1,050 crores, with Sheela Foam participating with ₹30 crores alongside new investors. Furlenco currently operates at an annualized revenue run rate of ₹400 crores and delivered a PAT of ₹18 crores for the first 9 months.
Source:
20
