Sheela Foam Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Sheela Foam Ltd filed with BSE on 07 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Sheela Foam reported consolidated revenue of Rs 1,032 crores and EBITDA of Rs 109 crores for Q1 FY27, crossing Rs 1,000 crores in quarterly revenue for the first time. Standalone Indian revenue grew 20% year-on-year while EBITDA grew 13%, with management attributing margin moderation to a sharp fall and volatility in raw material prices. International subsidiaries in Australia and Spain posted higher revenue growth and expanded EBITDA margins during the quarter.
Numbers mentioned
Consolidated revenue: Rs 1,032 crores (Q1 FY27)
p. 5
“For the first quarter, our consolidated revenue grew by 26% year-on-year to INR1,032 crores and consolidated EBITDA grew by 45% to reach INR109 crores”
Amit Gupta, page 5 of the filed PDF · View the filing
Consolidated EBITDA: Rs 109 crores (Q1 FY27)
p. 5
“consolidated EBITDA grew by 45% to reach INR109 crores - a milestone for the group, as addressed by Rahul ji earlier”
Amit Gupta, page 5 of the filed PDF · View the filing
Consolidated EBITDA margin: 10.6% (Q1 FY27)
p. 5
“EBITDA margin expanding by 139 basis points to 10.6% from 9.2% in Q1 of last year”
Amit Gupta, page 5 of the filed PDF · View the filing
Standalone revenue: Rs 761 crores (Q1 FY27)
p. 6
“On a standalone basis, revenue grew by 20% year-on-year to INR761 crores, while EBITDA grew by 13% to reach INR68 crores”
Amit Gupta, page 6 of the filed PDF · View the filing
Standalone EBITDA: Rs 68 crores (Q1 FY27)
p. 6
“revenue grew by 20% year-on-year to INR761 crores, while EBITDA grew by 13% to reach INR68 crores”
Amit Gupta, page 6 of the filed PDF · View the filing
Consolidated PAT: Rs 62 crores (Q1 FY27)
p. 3
“The group recorded a PAT of INR62 crores for the quarter, a substantial jump year-on-year”
Rahul Gautam, page 3 of the filed PDF · View the filing
Mattress value growth: 15% (Q1 FY27)
p. 3
“Within this, the mattresses value grew by 15% and the volumes by 6%, while our foam business grew by 26% in value and 4% in volume terms”
Rahul Gautam, page 3 of the filed PDF · View the filing
Foam business value growth: 26% (Q1 FY27)
p. 3
“our foam business grew by 26% in value and 4% in volume terms”
Rahul Gautam, page 3 of the filed PDF · View the filing
Joyce (Australia) revenue: Rs 120 crores (Q1 FY27)
p. 4
“In Australia, Joyce revenue grew by 31% to INR120 crores with an EBITDA margin of 12.8% for the quarter compared with 6.8% in the quarter 1 of last year”
Rahul Gautam, page 4 of the filed PDF · View the filing
Spain revenue: Rs 133 crores (Q1 FY27)
p. 5
“In Spain, the revenue stood at INR133 crores, a growth of 54% over last year, with the EBITDA margins improving to 14.7% compared with 5.7% in quarter 1 of last year”
Rahul Gautam, page 5 of the filed PDF · View the filing
Brand.com sales growth: 69% (Q1 FY27)
p. 4
“Sales on our websites, which we call as Brand.com, grew by 69% year-on-year basis, while sales on platforms grew by 19% year-on-year”
Rahul Gautam, page 4 of the filed PDF · View the filing
U2O business growth: 81% (Q1 FY27)
p. 4
“This vast and growing network helped us clock 81% year-on-year growth with volumes growing by 19%”
Rahul Gautam, page 4 of the filed PDF · View the filing
Furlenco subscriber base growth: 36% (Q1 FY27)
p. 5
“Its acquired subscriber base has grown by 36%, while revenue rose by 38%, and the EBITDA grew by 65% year-on-year”
Rahul Gautam, page 5 of the filed PDF · View the filing
Staqo revenue growth: 67% (Q1 FY27)
p. 5
“It registered a revenue growth of 67% in quarter 1 FY27 over last year while maintaining a healthy EBITDA run rate of around 28% to 30%”
Rahul Gautam, page 5 of the filed PDF · View the filing
Pending Kurlon synergy: Rs 40 crores
p. 8
“So, as I mentioned last time, there is only INR 40 crores worth of synergy that is outstanding.”
Amit Gupta, page 8 of the filed PDF · View the filing
Combined organized mattress market share: close to 20%
p. 15
“But if we look at the organized mattress market, we would have a combined share of close to 20%.”
Rahul Gautam, page 15 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Full-year EBITDA growth and margin — 15% growth with a 15% EBITDA margin · FY27
stated firmly by Amit Gupta
p. 10
“We still remain committed to our target of 15% growth with a 15% EBITDA margin.”
Amit Gupta, page 10 of the filed PDF · View the filing
Return on capital employed — 20% to 25% range · next 3 years
stated as an aspiration by Amit Gupta
p. 10
“We hope in the next 3 years, we should be able to reach somewhere around, say, 20% to 25% range in return on capital employed.”
Amit Gupta, page 10 of the filed PDF · View the filing
Debt repayment (India) — debt closed out · 1 year
stated conditionally by Amit Gupta
p. 10
“So, we will take another 1 year to close out the debt in India.”
Amit Gupta, page 10 of the filed PDF · View the filing
International operations EBITDA margin — 10% to 12%
stated as an aspiration by Amit Gupta
p. 11
“our international operations, though as they are in mature economies, should be growing at around 5% on a euro and Aussie dollar basis in their respective countries and should have EBITDA margins ranging between 10% to 12%.”
Amit Gupta, page 11 of the filed PDF · View the filing
Combined overseas revenue and EBITDA — crossing Rs 1,000 crores and EBITDA of around Rs 120-odd crores · FY27
stated firmly by Amit Gupta
p. 11
“This year, we are very confident of crossing INR1,000 crores and an EBITDA of, say, around INR120-odd crores.”
Amit Gupta, page 11 of the filed PDF · View the filing
Standalone volume growth — double-digit growth in foam and mattress volume · FY27
stated conditionally by Amit Gupta
p. 9
“So, we are pretty confident that as this volatility subsides, we would again be on the same trajectory. And for the year, definitely, we hope to get double-digit growth overall in both foam as well as in mattresses volume.”
Amit Gupta, page 9 of the filed PDF · View the filing
Volume recovery vs last year — exceed last year's volume growth
stated firmly by Amit Gupta
p. 12
“So, this year also, we are pretty confident that we will exceed the volume growth of last year.”
Amit Gupta, page 12 of the filed PDF · View the filing
Kurlon synergy realization — full impact visible · Q3 FY27
stated firmly by Amit Gupta
p. 8
“Maybe some impact you see during this quarter, but full impact would be visible in quarter 3.”
Amit Gupta, page 8 of the filed PDF · View the filing
Standalone volume growth level desired — closer to 10%
stated as an aspiration by Rahul Gautam
p. 7
“I would say it should be another 2% to 3%, sub-10% would be happiness, while the industry, according to us, has grown closer to 5%.”
Rahul Gautam, page 7 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said inventory holding periods made a difference in this volatile period but wouldn't matter in stable conditions.
Answered by Rahul Gautam
Asked by Ritesh Shah: Is the inventory-related margin gain in Australia and Spain sustainable?
p. 6
“So, Australia had a little bit of a longer inventory. It always has. Spain also had the largest inventory, which is normally carries. And that had the advantage during this period.”
Rahul Gautam, page 6 of the filed PDF · View the filing
Management said 6% is below their desired level and closer to 10% would be satisfactory.
Answered by Rahul Gautam
Asked by Ritesh Shah: Is 6% standalone volume growth satisfactory?
p. 7
“I would say standing around 6% at the moment. I would say it should be another 2% to 3%, sub-10% would be happiness, while the industry, according to us, has grown closer to 5%.”
Rahul Gautam, page 7 of the filed PDF · View the filing
Management said value growth accelerated instead due to price hikes, and expects double-digit volume growth for the full year as volatility eases.
Answered by Amit Gupta
Asked by Pritesh Chheda: Why did India volume growth slow to single digits versus double-digit exit run rate last year?
p. 9
“So, in value terms, our growth has also accelerated. So, if you see, we have reported on 15% and 26% growth in revenue terms.”
Amit Gupta, page 9 of the filed PDF · View the filing
Management expects the volatility to continue for a couple of months, linked to the ongoing war, but expects profitability to improve.
Answered by Rahul Gautam
Asked by Pankaj Tibrewal: Will the current volatility in profitability persist or become the new normal?
p. 10
“Our expectation is that at least for a couple of months, this volatility will be there.”
Rahul Gautam, page 10 of the filed PDF · View the filing
Management clarified the guided range was 11-12%, not 13%, and reaffirmed confidence despite volatility.
Answered by Amit Gupta
Asked by Rachna Kukreja: Does the company still stand by its 11-12% EBITDA margin guidance for FY27?
p. 13
“No. So, we guided for 11% to 12%. We never guided for 13% for the current year. Yes, we do stand for it.”
Amit Gupta, page 13 of the filed PDF · View the filing
Management said these raw materials form roughly 65-70% of COGS.
Answered by Amit Gupta
Asked by Deekshant Gupta: What percentage of COGS do TDI and polyol represent?
p. 14
“So, if you refer to COGS, it would be as high as 70%-odd, 65% to 70%.”
Amit Gupta, page 14 of the filed PDF · View the filing
Management said integration is nearly complete and most synergies have already been realized.
Answered by Rahul Gautam
Asked by Arjun Agarwal: Is the Kurlon integration complete and are synergies being realized as expected?
p. 15
“Yes. So, integration is almost complete, I would say, 96%, 97%, whether on the back-end front or the upside of it or the front-end side of it.”
Rahul Gautam, page 15 of the filed PDF · View the filing
Risks flagged
Volatile raw material prices amid the Middle East situation pressuring margins
p. 3
“Despite the challenges of a volatile raw material prices amid the ongoing Middle East situation, we delivered EBITDA growth and a higher absolute EBITDA compared with last year's first quarter.”
Rahul Gautam, page 3 of the filed PDF · View the filing
Raw material price swings of plus 40% to minus 20% making margin maintenance difficult
p. 7
“the raw material prices were fluctuating in the range of plus 40% to minus 20% in this particular period.”
Amit Gupta, page 7 of the filed PDF · View the filing
In-channel and high-seas inventory exposure during fast price swings impacting margins
p. 12
“A little bit of risk for us only because of the -- if the volatility is very high, it moves very fast from top to down, then we may have certain in-channel inventories, in pipe inventories like on the high seas, which may impact us a little bit on the margin”
Amit Gupta, page 12 of the filed PDF · View the filing
Supply chain disruption from Suez Canal and Strait of Hormuz blockages linked to the war
p. 10
“because it has disrupted the supply chains and the other things during this -- both the routes of Suez Canal and the Strait of Hormuz, etc., being blocked.”
Rahul Gautam, page 10 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.