Sheela Foam Limited is a prominent manufacturer of polyurethane (PU) foam in India and operates internationally with a significant presence in Australia and Spain. The company is primarily known for its flagship consumer-facing brand, Sleepwell, a household name in the Indian mattress and comfort products market. Following the integration of Kurlon Enterprises Limited (KEL), the company has further solidified its market leadership by combining two of the country's most recognized mattress brands under one umbrella. Sheela Foam's operations are vertically integrated, encompassing the manufacturing of PU foam and finished goods like mattresses, furniture cushioning, and technical foam products used in various industries including automotive, acoustics, and filtration. The company is steered by an experienced leadership team, including Chairman & MD Rahul Gautam, who are supported by a professional management team. Sheela Foam leverages a multi-channel distribution strategy, including an extensive retail network, a growing online presence through its own e-commerce platform and third-party marketplaces, and a strategic outreach program to convert the unorganized market. Its international subsidiaries, Joyce Foam in Australia and Interplasp in Spain, provide geographical diversification and access to developed markets.

Official Website: http://www.sheelafoam.com/

• Consolidated Performance (9M FY26 vs 9M FY25):

• Total Revenue: Grew by 7% year-over-year (YoY) to INR 2,771 Cr.

• Core EBITDA: Increased significantly by 34% YoY to INR 293 Cr.

• Core EBITDA Margin: Expanded by 210 basis points (2.1%) from 8.5% to 10.6%.

• Profit After Tax (PAT): Stood at INR 69 Cr.

• Consolidated Performance (Q3 FY26):

• Total Revenue: Grew by 11% YoY and 23% quarter-over-quarter (QoQ) to INR 1,074 Cr.

• Core EBITDA: Grew by 39% YoY and 28% QoQ to INR 117 Cr.

• Core EBITDA Margin: Reached 10.9%, an improvement from 8.7% in Q3 FY25.

• Profit After Tax (PAT): Reported at INR 53 Cr, a substantial increase from INR 17 Cr in the same quarter last year.

• Standalone Performance (SFL + KEL) (9M FY26 vs 9M FY25):

• Total Revenue: Increased by 6% YoY to INR 2,143 Cr.

• Core EBITDA: Grew by a strong 33% YoY to INR 224 Cr.

• Core EBITDA Margin: Improved by 210 basis points (2.1%) from 8.3% to 10.4%.

• Standalone Performance (SFL + KEL) (Q3 FY26):

• Total Revenue: Grew by 8% YoY and 26% QoQ to INR 842 Cr.

• Core EBITDA: Increased by 42% YoY and 30% QoQ to INR 87 Cr.

• Core EBITDA Margin: Expanded to 10.3% from 7.8% in Q3 FY25.

The company demonstrated strong financial performance with robust double-digit growth in both revenue and core profitability, driven by operational efficiencies and volume expansion across its business segments.

• Volume Growth (9M FY26 YoY):

• Mattress: Total mattress volumes grew by 11% YoY, from 2,499 thousand units to 2,778 thousand units.

• Foam: Total foam volumes saw a 12% YoY increase, rising from 34,816 tonnes to 39,113 tonnes.

• Technical Foam: This segment showed strong momentum with a 14% increase in volume.

• Comfort Foam: Volumes grew even faster at 15% YoY.

• Volume Growth (Q3 FY26 YoY):

• Mattress: Volumes were up 11% YoY and an impressive 41% QoQ.

• Foam: Overall foam volumes grew by 20% YoY, with Comfort Foam leading at 27% YoY growth.

• E-commerce Growth (H1 YoY):

• The company is experiencing accelerated growth through its online channels.

• Sales on third-party platforms grew by 39% YoY in the first half of the fiscal year.

• Direct-to-consumer sales via its own brand website (brand.com) surged by an exceptional 138% YoY in the same period.

Sheela Foam's growth is being fueled by strong, broad-based volume increases across both its mattress and foam segments, with e-commerce channels acting as a significant high-growth accelerator.

• Sustainability Goals (2030):

• The company has laid out a clear ESG roadmap with defined targets for 2030.

• Gender Diversity: Aims to increase female representation in the workforce from 6% to 10%.

• Renewable Energy: Plans to increase the share of solar energy in its consumption from 25% to 37%.

• Waste Reduction: Targets a reduction in process waste from 15% to 13%, with a goal of 100% monetization.

• Safety Standards: Aims to achieve ISO 45001 certification for its safety standards.

• Product Innovation & Launches:

• The company continues to introduce new products to cater to different market segments.

• Recent launches include the "Featherfoam - Mattress Pro" under the Sleepwell brand and "Sofa Jump Z" for furniture cushioning.

• Marketing & Brand Building:

• Sheela Foam is actively running targeted digital and traditional marketing campaigns for both Sleepwell and Kurlon brands.

• Initiatives include wedding season campaigns, festive campaigns, and influencer collaborations, which have generated a social reach of over 35 million.

The company's future strategy is anchored in sustainable operations, continuous product innovation, and aggressive marketing to strengthen its brand equity and market reach.

• Consolidated Margins:

• Core EBITDA Margin: Improved to 10.9% in Q3 FY26 from 8.7% in Q3 FY25. For the nine-month period, the margin expanded to 10.6% from 8.5% a year ago.

• Gross Margin: Stood at 41.7% in Q3 FY26, showing a 1.1% YoY improvement.

• Standalone Margins:

• Core EBITDA Margin: Showed significant improvement, rising to 10.3% in Q3 FY26 from 7.8% in Q3 FY25.

• Gross Margin: Was 40.5% in Q3 FY26, a modest increase of 0.8% YoY.

• International Margins:

• Australia (Joyce): EBITDA margin for Q3 FY26 was 12.5%, a significant recovery from lower levels and an improvement over the 9M FY26 average of 9.8%. Gross margin was stable and high at 53.6%.

• Spain (Interplasp): EBITDA margin reached 11.9% in Q3 FY26, up from 7.7% in the prior year's quarter. Gross margin for the quarter was 32.3%.

Margin expansion has been a key theme, driven by improved operational leverage, better sales realizations, and cost control measures, particularly in the international businesses.

• International Business Turnaround:

• Australia (Joyce): The business is back on a profitable track. Key drivers include a reduction in overhead and fixed expenses, substantial work on waste reduction, and leveraging India's network for low-cost raw material procurement. Revenue for 9M FY26 was INR 312 Cr.

• Spain (Interplasp): Growth is being aided by better sales realizations. Revenue for 9M FY26 was INR 281 Cr.

• Strategic Outreach (U20):

• The company is actively pursuing a strategy to convert customers from the unorganized sector to the organized sector (U20).

• This initiative spans across retail channels and geographies, aiming to capture a larger share of the overall market.

• STAQO Segment Performance:

• This business segment generated revenue of INR 20 Cr in Q3 FY26 and INR 50 Cr for 9M FY26.

• It operates at a healthy EBITDA margin, reporting 29.0% for Q3 FY26 and 29.1% for the nine-month period.

The company is successfully executing a turnaround in its Australian operations and is strategically focused on capturing market share from the unorganized sector, while its smaller segments continue to perform well.