India Ratings Affirms Sheela Foam's Bank Loan Facilities at ‘IND AA’/Stable; Withdraws NCD Ratings
India Ratings affirmed SFL's bank loan facilities at ‘IND AA’/Stable/IND A1+ for ₹180 crore additional and ₹700 crore existing facilities. Ratings on ₹181.25 crore NCDs were withdrawn due to full redemption. SFL's consolidated revenue grew to ₹10,319 million in 1QFY27, with expected 10-12% YoY growth in FY27. Net leverage improved to 1.9x in FY26.
The credit rating affirmation provides stability and confidence to lenders and investors regarding the company's ability to service its debt obligations. The withdrawal of ratings on redeemed NCDs is a routine event but signifies debt reduction.
The affirmation of bank loan facilities at a strong rating of 'IND AA/Stable/IND A1+' and the withdrawal of ratings on fully redeemed non-convertible debentures are positive indicators for the company's financial health and creditworthiness.
India Ratings and Research Private Limited has affirmed Sheela Foam Limited's (SFL) bank loan facilities and withdrawn the rating assigned to the Company’s non-convertible debentures, which have been fully redeemed.
The bank loan facilities have been assigned a rating of ‘IND AA/Stable/IND A1+’ to additional bank loan facilities of ₹180 crore and reaffirmed the existing rating of ‘IND AA/Stable/IND A1+’ on bank loan facilities of ₹700 crore.
The rating of ‘IND AA/Stable’ assigned to the Company’s non-convertible debentures aggregating to ₹181.25 crore (ISIN: INE916U08012) has been withdrawn as they have been fully redeemed.
The ratings reflect SFL’s strong market position in the Indian organised mattress segment, improved scale of operations, strengthened market position with increased online branded mattress sales in FY26, and improved credit metrics in FY26. The company's consolidated revenue increased to ₹10,319 million in 1QFY27, and management expects revenue to grow 10%-12% year-on-year in Indian operations for FY27. Consolidated EBITDA margins remained at 10.6% in 1QFY27, with expectations of further improvement. Gross debt decreased to ₹7,137 million in FY26 due to the repayment of NCDs. The net leverage reduced to 1.9x in FY26, and is expected to improve further. SFL has a strong distribution network of over 11,000 touchpoints and a history of successful acquisitions. However, the ratings are constrained by susceptibility to raw material price volatility and exposure to economic downturns.
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Sheela Foam Limited filed this with the NSE as a statutory disclosure, categorised under other regulatory filings. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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See the model portfoliosA plain-language summary of a public exchange filing by Sheela Foam Limited. Read the original for the full detail.