Sheela Foam Limited has reported a stellar performance for FY ’26, achieving its highest-ever annual foam production, revenue, and EBITDA. The successful integration of the Kurlon acquisition, coupled with strong momentum in the Sleepwell and foam segments, drove healthy revenue and profitability gains. The company also announced its first-ever dividend of 20%, reflecting its strengthened cash generation profile and reduced debt levels.
FY ’26 Financial Highlights
Sheela Foam delivered a strong fiscal performance, with consolidated revenue for FY ’26 growing 11% Y-o-Y to INR 3,821 crores. The fourth quarter showed exceptional momentum, with a 24% revenue growth. Consolidated PAT for the year stood at INR 161 crores, a 78% increase, with a significant INR 144 crores generated in the second half of the year alone. The company’s core EBITDA margins for the full year improved to 10.8%.
Strategic Growth and Operational Success
The company’s integration of the Kurlon brand has significantly bolstered its operating performance. Retail presence saw a substantial expansion with the addition of approximately 600 net new showrooms. Furthermore, the Unorganized to Organized (U2O) business initiative, now reaching over 5,000 towns, delivered a remarkable 65% volume growth and 111% value growth. E-commerce channels also witnessed robust scaling, with sales on brand.com growing by 136%.
International and Subsidiary Performance
International operations in Australia and Spain showed significant profitability improvements. Joyce (Australia) reported revenue of INR 422 crores with EBITDA margins reaching 10%. Spain recorded revenue of INR 391 crores with improved EBITDA margins of 10.4%. Additionally, Furlenco reported a revenue of INR 370 crores, marking a 60% year-on-year growth and achieving a PAT of nearly INR 60 crores, showcasing the successful implementation of the company’s omnichannel strategy.
Future Outlook and Shareholder Value
Sheela Foam remains focused on maintaining its growth momentum while managing raw material price volatility through strategic sourcing and hedging. The company has reduced its net debt by INR 156 crores and, for the first time since listing, has recommended a 20% dividend. Looking ahead to FY ’27, management remains committed to deeper market penetration, entry into related product categories like pillows, and ongoing operational efficiency improvements.
Source: BSE
