Company Overview

Sheela Foam Limited (Scrip Code: 540203) filed its Annual Report and financial statements for FY 2025-26, demonstrating strong financial performance and strategic progress.

Financial Performance

Consolidated Results

  • Revenue from operations: ₹3,820.84 crores (11% growth YoY from ₹3,439.20 crores)
  • Core EBITDA: ₹414 crores (46% increase YoY) with margin expansion of 261 basis points to 10.8%
  • Profit After Tax: ₹161 crores (41% increase YoY)
  • Basic EPS: ₹14.62 (vs ₹8.18 in FY25)
  • Net debt reduced by ₹156 crore to ₹543 crore, with Net Debt/EBITDA at 1.3x

Standalone Performance

  • Revenue: ₹2,962.27 crores (10.7% increase from ₹2,675.25 crores)
  • Profit Before Tax: ₹181.84 crores (64.5% increase)
  • Profit After Tax: ₹160.85 crores (73.5% increase)

Operational Highlights

  • Achieved 100,000 MT global foam production milestone across India, Australia, and Spain facilities
  • Mattress volumes grew 12%, foam business volumes grew 18%, U2O platform delivered 65% volume growth
  • E-commerce showed strong performance with 49% volume growth and 52% value growth
  • Distribution network expanded to 8,400+ dealers across 5,500+ towns, adding 600 net new showrooms
  • International operations: Australia revenue AUD 71.08 million, Spain revenue EUR 38.15 million

Strategic Developments

M&A Integration

  • Successfully completed amalgamation of Kurlon Enterprise Limited and subsidiaries, approved by NCLT on September 17, 2025
  • Goodwill adjustment of ₹30 crores during measurement period, final goodwill at ₹406.80 crores
  • Staqo World Private Limited merged with Staqo Software Private Limited effective April 1, 2024

Investment Activities

  • Investment in House of Kieraya Limited (Furlenco): ₹453.49 crores total, equity stake reduced from 43.89% to 34.53% due to fresh issuance
  • Furlenco subscriber base exceeded 1.7 lakh customers, raised ₹125 crore in equity during the year
  • Staqo revenue grew 35% to ₹70 crore with 28% EBITDA margin

Accounting Changes & Policies

  • Changed depreciation method from Written Down Value (WDV) to Straight Line Method (SLM) effective January 1, 2026
  • Reduced depreciation expense by ₹14.24 crores (standalone) and ₹14.37 crores (consolidated), boosting PBT
  • Revised useful life of certain machinery from 20 to 40 years based on technical assessment
  • Implemented new accounting standards including amendments to Ind AS 7, Ind AS 107, and Ind AS 1

Capital Structure & Corporate Actions

  • Paid-up equity share capital: ₹54.60 crores (10,91,98,924 shares of ₹5 each)
  • Allotted 4,782 equity shares under ESOPs and 488,146 shares to Kurlon shareholders
  • Board recommended final dividend of ₹1 per share (20% on face value)
  • Major shareholders: Rahul Gautam (47.34%), Rangoli Resorts Private Limited (12.08%), SBI Elss Tax Saver Fund (9.15%)

Management & Governance

  • Rahul Gautam redesignated from Executive Chairman to Chairman and Managing Director
  • Tushaar Gautam redesignated from Managing Director to Vice Chairman and Joint Managing Director
  • Rakesh Chahar redesignated to Deputy Managing Director
  • Appointment of new Independent Directors: Neeraj Jain, Hiroo Mirchandani, Rajiv Srivastava, and Sudhir Ganpathy Shenoy

Sustainability & CSR

  • CSR expenditure: ₹5.37 crore (exceeding requirement of ₹3.16 crore)
  • Sleepwell Foundation initiatives impacted 17,440 individuals through 271 workshops
  • Female workforce participation: 8% (target 11% by FY2030)
  • Solar energy contribution: 5.4MW, water consumption intensity: 39 KL/per person

Regulatory Compliance & Contingencies

  • Filed updated Annual Report with BSE and NSE on July 13, 2026
  • Secretarial Audit report without qualifications
  • Contingent liabilities: ₹55.00 crores in tax matters
  • Maintained compliance with all debt covenants including interest service coverage ratio ≥ 2.5x

Forward Outlook

The company maintains positive outlook based on strong operational performance, successful integration of acquisitions, and continued focus on market expansion and sustainability initiatives.