Sheela Foam Q1 FY27: Consolidated Revenue Crosses ₹1,000 Cr, EBITDA Over ₹100 Cr
Sheela Foam reported Q1 FY27 consolidated revenue of ₹1,032 crore, up 26% YoY, and EBITDA of ₹109 crore, up 45% YoY. Standalone revenue grew 20% to ₹761 crore. International operations in Australia and Spain showed strong growth and margin improvement. The company is expanding into furniture and sees continued growth in its U2O and e-commerce segments.
The announcement details significant financial growth, including crossing key revenue and EBITDA milestones, alongside strategic expansion into new business areas and strong performance in international markets, which are all material factors for investors.
The company reported strong double-digit growth in revenue and EBITDA for both consolidated and standalone businesses, exceeding historical milestones. International operations also performed exceptionally well, and the company is strategically expanding into new segments like furniture.
Sheela Foam Limited announced its financial results for the first quarter of FY27, marking a significant milestone with consolidated revenues exceeding ₹1,000 crore for the first time in the group's history. The company also reported consolidated EBITDA of over ₹100 crore and a Profit After Tax (PAT) of ₹62 crore for the quarter, representing a substantial year-on-year jump.
The standalone Indian business demonstrated robust performance with revenue growth of 20% and EBITDA growth of 13% year-on-year. Within this segment, mattresses saw a value growth of 15% and volume growth of 6%, while the foam business grew by 26% in value and 4% in volume terms. Despite challenges posed by volatile raw material prices, the company managed to achieve EBITDA growth and higher absolute EBITDA compared to the previous year's first quarter.
Sheela Foam's e-commerce business continued its strong growth trajectory, with sales on its website (Brand.com) increasing by 69% year-on-year and sales on other platforms growing by 19%. The overall e-commerce category registered a 30% year-on-year growth in Q1 FY27, with volumes up by 23%. The company is also venturing into the furniture segment by leveraging Furlenco's capabilities, having launched sofa beds under the Sleepwell and Kurlon brands.
The unorganized to organized (U2O) business expanded significantly, now reaching nearly 10,000 dealers and clocking 81% year-on-year growth with volumes up by 19%. This growth was boosted by the introduction of 5- and 6-inch mattresses in the category.
International operations also showed exceptional performance. In Australia, Joyce revenue grew by 31% to ₹120 crore with EBITDA margins improving to 12.8%. Spain reported a revenue growth of 54% to ₹133 crore, with EBITDA margins rising to 14.7%. These improvements are attributed to strategic yield enhancement programs, supply chain restructuring, and effective inventory management.
Furlenco's business continued to perform well, with its subscriber base growing by 36% and revenue rising by 38%. The IT business, Staqo, registered a revenue growth of 67%, maintaining a healthy EBITDA margin of 28-30%. The company also highlighted its progress in ESG, receiving category upgrades in CRISIL ESG ratings and improvements in S&P Global Corporate Sustainability Assessment and Sustainalytics risk rating.
Financially, consolidated revenue grew by 26% year-on-year to ₹1,032 crore, and consolidated EBITDA increased by 45% to ₹109 crore, with EBITDA margins expanding by 139 basis points to 10.6%. Standalone revenue grew by 20% to ₹761 crore, with EBITDA growing by 13% to ₹68 crore.
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Sheela Foam Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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