Sheela Foam reported strong Q3 FY26 results with revenue up 7% year-over-year. Kurlon’s acquisition is complete, showing significant turnaround and synergy benefits. Consolidated core EBITDA margins reached 10.9%, a 220 basis points increase, and PAT grew threefold. The company is expanding retail presence and focusing on pillows as a growth category. International business is progressing steadily, and Furlenco sees continued growth.
Financial Performance Overview
Sheela Foam announced positive financial results for Q3 FY26. Key highlights include:
- Consolidated revenue growth of 7% YoY, from ₹2,590 crores to ₹2,771 crores.
- Standalone revenue increased by 6%, from ₹2,013 crores to ₹2,143 crores.
- Mattress volumes grew by 11%.
- Foam volume experienced substantial growth of 20%.
- Consolidated core EBITDA margin stood at 10.9%, up by 220 basis points.
- PAT increased threefold.
The company’s performance reflects a strong growth trajectory with sustainable margins.
Kurlon Acquisition and Synergies
The merger with Kurlon is complete, leading to significant operational improvements. Synergies from the acquisition have created substantial value:
- Kurlon has shown considerable turnaround.
- Core EBITDA of combined Indian operations reached 10% for the last 9 months.
These positive results align with pre-acquisition margins, supported by top-line growth.
Retail Expansion and E-Commerce
Sheela Foam is actively expanding its retail presence, adding approximately 600 new showrooms in the last 9 months, with plans to reach about 700 showrooms by fiscal year-end.
The E-Commerce business grew by 53% YoY in the last 9 months, generating net revenues of around ₹180 crores.
International Business and Furlenco
The international business in Dubai and the wider GCC region is steadily progressing, with exclusive retail stores and collaborations with large format retail chains.
Furlenco is showing continued growth, achieving an annualized revenue run rate of ₹400 crores. For the first 9 months, Furlenco delivered a PAT of ₹18 crores and generated cash profits of ₹68 crores.
ESG Initiatives
Sustainability remains a key priority, including:
- Operationalizing a 500kW solar power plant.
- Installing an additional 1,000kW of renewable energy capacity.
Guidance and Outlook
The company aims for a 15% revenue growth with a 15% EBITDA margin. Debt reduction efforts are ongoing, targeting net debt levels between ₹600-650 crores.
Source: BSE
