Sheela Foam Q2 FY26 Consolidated Profit Falls to ₹9.96 Crore Amidst Exceptional Loss; Kurlon Merger Approved
Sheela Foam reported Q2 FY26 consolidated profit of ₹9.96 crore, down from ₹20.24 crore YoY, despite revenue growth. The results include a ₹7.84 crore loss from asset sales. Kurlon's merger with SFL was approved by NCLT on September 17, 2025.
The announcement has a high impact due to the significant decline in profitability reported for the quarter, the inclusion of a material exceptional loss from asset sales, and the NCLT approval of a major amalgamation which has long-term strategic implications.
The sentiment is negative due to a significant year-on-year decline in both standalone and consolidated profit after tax for the quarter ended September 30, 2025, despite revenue growth. This decline was further impacted by an exceptional loss of ₹7.84 crore from the sale of land and building assets.
Sheela Foam Limited's Board of Directors, in a meeting held on November 4, 2025, approved the unaudited standalone and consolidated financial results for the quarter and half-year ended September 30, 2025. * Consolidated Financial Highlights for Q2 FY26 (Quarter ended September 30, 2025): * Revenue from operations: ₹874.90 crore, an increase from ₹812.71 crore in the same quarter last year. * Profit before tax: ₹12.23 crore, down from ₹26.01 crore in Q2 FY25. * Profit for the period (after tax and share of joint venture): ₹9.96 crore, a significant decrease from ₹20.24 crore in Q2 FY25. * Basic Earnings Per Share (EPS): ₹0.88, down from ₹1.83 in Q2 FY25. * Standalone Financial Highlights for Q2 FY26 (Quarter ended September 30, 2025): * Revenue from operations: ₹666.60 crore, an increase from ₹610.75 crore in the same quarter last year. * Profit before tax: ₹1.58 crore, down from ₹2.22 crore in Q2 FY25. * Profit for the period (after tax): ₹5.65 crore, a decrease from ₹11.77 crore in Q2 FY25. * Basic EPS: ₹0.52, down from ₹1.93 in Q2 FY25.
Key Corporate Actions and Updates: * The Scheme of Amalgamation of Kurlon Enterprise Limited (KEL) with Sheela Foam Limited (SFL), effective from October 20, 2023, received approval from the National Company Law Tribunal (NCLT), Mumbai Bench, on September 17, 2025. The accounting effects of this acquisition have been prepared using the "Pooling of Interest Method" from April 1, 2024. * A proposed Scheme of Amalgamation between Staqo World Private Limited (SWPL) and Staqo Software Private Limited (SSPL) is currently filed with the NCLT, Delhi Bench, but has not yet received regulatory approvals and is therefore not accounted for in these financial results.
Exceptional Items Impacting Results: * The quarter and period ended September 30, 2025, includes an exceptional loss of ₹7.84 crore from the sale of certain land and building assets located in Roorkee, Uttarakhand, and Bangalore.
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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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