Sheela Foam Limited has reported its audited financial results for the quarter and year ended March 31, 2026. The company has recommended a final dividend of 20%, amounting to Rs. 1 per equity share, subject to shareholder approval. The board noted significant shifts in operational accounting, including a change in depreciation methodology, and confirmed an unmodified opinion from auditors on its financial performance for the fiscal year.
Annual Financial Performance Highlights
For the financial year ended March 31, 2026, Sheela Foam Limited reported a standalone total income of ₹3,002.59 crore, compared to ₹2,802.67 crore in the previous year. The standalone net profit for the year stood at ₹130.57 crore, up from ₹92.70 crore in the previous fiscal period. On a consolidated basis, the Group recorded a total income of ₹3,875.11 crore for the year, with a consolidated net profit of ₹160.85 crore.
Dividend Recommendation
The Board of Directors has recommended a final dividend of ₹1 per equity share (at a face value of ₹5 each) for the financial year 2025-26. This dividend payout represents a 20% return to shareholders and will be processed within 30 days of receiving approval at the company’s upcoming Annual General Meeting.
Strategic and Operational Updates
The company implemented a change in its depreciation policy effective January 1, 2026, shifting from the Written Down Value (WDV) method to the Straight Line Method (SLM). Furthermore, the company reassessed the useful life of specific plant and machinery assets from 20 years to 40 years. These changes resulted in a reduction in depreciation expense and a corresponding increase in profit before tax of ₹14.24 crore for the standalone results and ₹14.37 crore for the consolidated results.
Exceptional Gains
The financial results for the year include a net gain of ₹7.93 crore attributed to the sale of specific land and building assets located in Roorkee (Uttarakhand), Bangalore (Karnataka), and Jhagadia (Gujarat). The company continues to assess the impact of new national labor codes and has accounted for the incremental cost related to past service gratuity and long-term absences.
Source: BSE
