Sheela Foam Q3 FY26 Earnings Call Transcript Released
Sheela Foam's Q3 FY26 earnings call transcript reveals a 7% YoY consolidated revenue growth to ₹2,771 crore. Kurlon merger integration led to 10% consolidated EBITDA margins. Mattress volumes grew 11% and foam volumes 20% in Q3. E-commerce saw 53% growth. Furlenco raised ₹125 crore, with SFL investing ₹30 crore. Consolidated PAT jumped 3x to ₹53 crore.
The announcement details the successful integration of a major acquisition (Kurlon), significant financial performance improvements (revenue, EBITDA, PAT), strategic expansions (retail, e-commerce, international), and key investments (Furlenco). These are material developments that are likely to significantly influence investor perception and the company's future trajectory.
The company reported strong growth in revenue, improved EBITDA margins, significant growth in key segments like mattresses and foam, successful integration of Kurlon, and positive performance in international markets. The Furlenco investment and E-commerce growth also contribute to a positive outlook.
Sheela Foam Limited has released the transcript of its Investor Earnings Conference Call held on February 4, 2026. The call discussed the company's operational and financial performance for the quarter and nine months ended December 31, 2025.
Key highlights from the call included the completion of the Kurlon merger, which has significantly improved consolidated EBITDA margins to 10% for the last nine months, aligning with pre-acquisition SFL margins. The India business maintained double-digit core margins, with mattress volumes growing 11% YoY and value realization at 9% for the nine-month period. Retail expansion added approximately 600 net new showrooms in the last nine months, aiming for 700 by year-end. E-commerce business saw a 53% YoY growth, reaching ₹180 crore in net revenues for the nine-month period. The unorganized to organized (U2O) segment grew by nearly 100%, reaching ₹75 crore turnover by December 2025. Foam volumes grew 20% YoY in Q3 FY26 and 12% over the nine months. International businesses in Dubai, GCC, Australia, and Spain showed marked improvement with EBITDA margins around 12% in Q3.
Furlenco, in which Sheela Foam infused ₹30 crore, raised ₹125 crore in equity, aiming for a ₹500-550 crore topline. Furlenco is at an annualized revenue run rate of ₹400 crore, with ₹18 crore PAT and ₹68 crore cash profits for the first nine months. Staqo, the technology subsidiary, continues to expand its enterprise solutions. On the ESG front, Sheela Foam operationalized a 500 kW solar power plant and is installing additional renewable energy capacity. CSR efforts focus on emotional wellness and skill development.
Financially, consolidated revenue grew 7% YoY to ₹2,771 crore, and standalone revenue grew 6% to ₹2,143 crore in Q3 FY26. Consolidated core EBITDA grew 34% YoY to ₹293 crore for the nine months, with margins expanding by 213 basis points to 10.6%. Consolidated PAT for Q3 FY26 was ₹53 crore, a 3x jump YoY, with 9-month PAT at ₹69 crore. Consolidated cash PAT for the last 9 months stood at ₹209 crore. Asset monetization has garnered ₹100-125 crore, used for debt reduction, bringing net debt levels in India to less than ₹300 crore.
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Sheela Foam Limited filed this with the NSE as a statutory disclosure, categorised under concall transcript released. 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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See the model portfoliosA plain-language summary of a public exchange filing by Sheela Foam Limited. Read the original for the full detail.