Sheela Foam Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sheela Foam Ltd filed with BSE on 19 May 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 Q4 FY26 consolidated revenue growth of 24% year-on-year to Rs 1,050 crores, with core EBITDA margins improving to 11.5% from 7.5% a year earlier. For the full year FY26, consolidated revenue grew 11% to Rs 3,821 crores and core EBITDA crossed Rs 400 crores for the first time, up 46% year-on-year. Management described continued growth in the Kurlon integration, e-commerce, unorganized-to-organized business, and international operations in Australia and Spain, and announced the company's first-ever dividend recommendation of 20% for FY26.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Consolidated revenue: INR1,050 crores (Q4 FY26)
p. 6
“On a consolidated basis, revenue grew by 24% year-on-year in Q4 to INR1,050 crores.”
Amit Gupta, page 6 of the filed PDF · View the filing
Consolidated revenue: INR3,821 crores (FY26)
p. 6
“For financial year '26, the consolidated revenue grew by 11% Y-o-Y to INR3,821 crores.”
Amit Gupta, page 6 of the filed PDF · View the filing
Consolidated core EBITDA: INR121 crores (Q4 FY26)
p. 6
“Our consolidated core EBITDA stood at INR121 crores for the fourth quarter, growing by 90% on a year-on-year basis.”
Amit Gupta, page 6 of the filed PDF · View the filing
Core EBITDA margin: 11.5% (Q4 FY26)
p. 6
“Core EBITDA margins improved by around 400 basis points to 11.5% from 7.5% last year.”
Amit Gupta, page 6 of the filed PDF · View the filing
Consolidated core EBITDA: INR414 crores (FY26)
p. 6
“Financial year '26, consolidated core EBITDA stood at INR414 crores.”
Amit Gupta, page 6 of the filed PDF · View the filing
Consolidated PAT: INR92 crores (Q4 FY26)
p. 6
“I'm pleased to share that the consolidated PAT for Q4 stood at INR92 crores, representing a 7x increase on a year-on-year basis.”
Amit Gupta, page 6 of the filed PDF · View the filing
Consolidated PAT: INR161 crores (FY26)
p. 6
“For financial year '26, the consolidated PAT stood at INR161 crores, growing by around 78% Y-o-Y.”
Amit Gupta, page 6 of the filed PDF · View the filing
Net debt reduction: INR156 crores (FY26)
p. 6
“During financial year '26, the company also reduced net debt by INR156 crores, reflecting the underlying cash generation of the business and continued focus on balance sheet discipline.”
Amit Gupta, page 6 of the filed PDF · View the filing
Return on capital employed: around 18% (FY26)
p. 6
“we see that it currently stands at around 18%, which even before Kurlon acquisition was around 17%”
Amit Gupta, page 6 of the filed PDF · View the filing
Mattress volume growth: 12% (FY26)
p. 4
“Mattress volumes grew by 13% year-on-year in quarter 4 FY '26 and by 12% for the full year.”
Rahul Gautam, page 4 of the filed PDF · View the filing
Foam business volume growth: 18% (FY26)
p. 4
“For the full year of last fiscal, volume growth was at 18%, while value growth stood at 14%.”
Rahul Gautam, page 4 of the filed PDF · View the filing
U2O volume growth: 65% (FY26)
p. 4
“In FY '26, this U2O business delivered volume growth of 65% and value growth of 111% on a year-on-year basis.”
Rahul Gautam, page 4 of the filed PDF · View the filing
Brand.com sales growth: 136% (FY26)
p. 4
“Sales on our own websites, which we call as brand.com, grew by 136% year-on-year and sales on platforms grew by 39% year-on-year.”
Rahul Gautam, page 4 of the filed PDF · View the filing
Furlenco revenue: INR370 crores (FY26)
p. 5
“Furlenco reported a revenue of INR370 crores, a growth of over 60% year-on-year.”
Rahul Gautam, page 5 of the filed PDF · View the filing
Furlenco PAT: close to INR60 crores (FY26)
p. 5
“The company clocked a PAT of close to INR60 crores compared to INR3 crores in FY '25, thereby marking significant improvement in its performance.”
Rahul Gautam, page 5 of the filed PDF · View the filing
Australia (Joyce) revenue: INR422 crores (FY26)
p. 4
“In Australia, Joyce revenue stood at INR422 crores in FY '26 and EBITDA margins improved to 10% for the full year, which is a”
Rahul Gautam, page 4 of the filed PDF · View the filing
Spain revenue: INR391 crores (FY26)
p. 5
“In Spain, revenue stood at INR391 crores in FY '26 and EBITDA margin of 10.4% for the full year as compared to 8.4% in FY '25.”
Rahul Gautam, page 5 of the filed PDF · View the filing
Staqo revenue: INR70 crores (FY26)
p. 5
“During FY '26, Staqo delivered a revenue of INR70 crores.”
Rahul Gautam, page 5 of the filed PDF · View the filing
New showrooms added: approximately 600 net new showrooms (FY26)
p. 4
“On the retail side, we added approximately 600 net new showrooms during FY '26.”
Rahul Gautam, page 4 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.
Revenue growth rate — better than 15%
stated conditionally by Amit Gupta
p. 7
“we had taken a target that we would be first trying to reach a growth rate of around 15% plus. Now since raw materials have increased last year, this should be better than 15%.”
Amit Gupta, page 7 of the filed PDF · View the filing
Depreciation — INR140 crores to INR145 crores · FY27
stated firmly by Amit Gupta
p. 9
“should be around INR140 crores to INR145 crores at a consolidated level.”
Amit Gupta, page 9 of the filed PDF · View the filing
Capex — INR125 crores to INR150 crores · FY27
stated firmly by Amit Gupta
p. 9
“We should be somewhere between INR125 crores to INR150 crores.”
Amit Gupta, page 9 of the filed PDF · View the filing
Furlenco revenue — about INR500 crores · next year
stated firmly by Rahul Gautam
p. 11
“Next year's plan is about INR500 crores, and it's tracking well.”
Rahul Gautam, page 11 of the filed PDF · View the filing
India debt repayment — 1, 1.5 years
stated conditionally by Amit Gupta
p. 11
“should be paid in the next 1, 1.5 years”
Amit Gupta, page 11 of the filed PDF · View the filing
Furlenco IPO decision — next 3 to 4 months
stated firmly by Rahul Gautam
p. 11
“we will take our decision somewhere in the next 3 to 4 months' time.”
Rahul Gautam, page 11 of the filed PDF · View the filing
Australia and Spain EBITDA margin — between 10% to 12%
stated as an aspiration by Amit Gupta
p. 15
“So intent is to retain it between 10% to 12%, which to some extent is feasible in these countries and possible.”
Amit Gupta, page 15 of the filed PDF · View the filing
Consolidated finance cost — around INR50-odd crores
stated conditionally by Amit Gupta
p. 12
“So at a consolidated level, finance cost should show a figure of around INR50-odd crores until and unless we do major changes in the capital structure.”
Amit Gupta, page 12 of the filed PDF · View the filing
Business line expansion into related product categories — 3- to 5-year horizon
stated as an aspiration by Amit Gupta
p. 7
“our objective would be to get into related product categories so that we are a full product player and increase our penetration across the country”
Amit Gupta, 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 the focus is on reaching 15%+ growth, building complementary categories like pillows, and deepening e-commerce and U2O penetration over a 3-5 year horizon.
Answered by Amit Gupta
Asked by Rahul Agarwal: What is management's top priority for growth and return on capital over the next 2-3 years?
p. 7
“we had taken a target that we would be first trying to reach a growth rate of around 15% plus.”
Amit Gupta, page 7 of the filed PDF · View the filing
Management said raw material prices are highly volatile and elevated versus historical averages, and price increases have been passed through in varying degrees across channels.
Answered by Rahul Gautam
Asked by Rahul Agarwal: What is the current status of TDI and polyol pricing and how is the company passing through cost increases?
p. 8
“polyols should be around INR120 plus and TDI should be around INR240 or something like that. But at the moment, they are both above that.”
Rahul Gautam, page 8 of the filed PDF · View the filing
Management said polyol and TDI increased 25-35% on average and prices were raised across categories to offset the increase and partly protect margins.
Answered by Amit Gupta
Asked by Rahul Agarwal: Can you quantify the price hikes taken on mattresses and foam to offset raw material inflation?
p. 8
“polyol and TDI on an average increased between 25% to 35%.”
Amit Gupta, page 8 of the filed PDF · View the filing
Management said full-year marketing spend was around 4.5% of sales, similar to last year, with Q4 slightly lower at around 4%.
Answered by Amit Gupta
Asked by Arjun Khanna: What is the marketing expense for Q4 and FY26 as a percent of sales?
p. 9
“for the entire year, it should be around 4.5%, almost similar to what we did last year.”
Amit Gupta, page 9 of the filed PDF · View the filing
Management said inventory and price pass-through happen almost simultaneously, so no material margin impact is expected, with volume growth being the main margin driver.
Answered by Amit Gupta
Asked by Amit Mehendale: Will EBITDA margins be under pressure in Q1/Q2 FY27 due to raw material inflation flowing through inventory?
p. 10
“the higher price inventory almost maps up with the increase in the prices. And that's why you see there is no -- not a very material increase in gross margin”
Amit Gupta, page 10 of the filed PDF · View the filing
Management said Furlenco is targeting around Rs 500 crore revenue next year and a decision on IPO timing will be made in 3-4 months.
Answered by Rahul Gautam
Asked by Amit Mehendale: What are the future plans for Furlenco including a possible IPO?
p. 11
“Next year's plan is about INR500 crores, and it's tracking well.”
Rahul Gautam, page 11 of the filed PDF · View the filing
Management clarified Sheela Foam holds around 43% of Furlenco on a fully diluted basis and that Furlenco's return on capital employed is around 30-35%.
Answered by Amit Gupta
Asked by Pritesh Chheda: What is Furlenco's shareholding structure and return profile?
p. 11
“we hold around -- on a fully diluted basis, we hold around 43% in Furlenco.”
Amit Gupta, page 11 of the filed PDF · View the filing
Management said India debt of around Rs 300 crore could be repaid within 1.5 years from cash flow, and consolidated finance cost should be around Rs 50 crore.
Answered by Amit Gupta
Asked by Pritesh Chheda: When will India debt be repaid and what is the interest cost outlook?
p. 12
“the cash flow generated will have capacity to repay the India debt in 1.5 years since it is around INR300-odd crores.”
Amit Gupta, page 12 of the filed PDF · View the filing
Management said the gap reflects introduction of a higher-priced model and price increases across both models in the segment.
Answered by Rakesh Chahar
Asked by Ritesh Shah: Why is there a gap between U2O volume growth (65%) and value growth (111%)?
p. 12
“we have introduced a higher model. Earlier when we had launched this product, we had launched with only one model. So now we have introduced another model at a higher price point.”
Rakesh Chahar, page 12 of the filed PDF · View the filing
Management said the remaining synergy is tied to new machines under installation, delayed by 1.5 quarters, expected to be installed by this quarter's end.
Answered by Amit Gupta
Asked by Ritesh Shah: What is the status of the pending Rs 40 crore synergy savings from the Kurlon acquisition?
p. 13
“INR40 crores was to come from some new machines which were imported with a new material of malleable fiber to be used as a comfort layer. That is currently under installation. It is delayed by 1.5 quarters.”
Amit Gupta, page 13 of the filed PDF · View the filing
Management said growth reflected structural focus on these segments plus temporary gains from smaller competitors' supply disruptions during the conflict, not channel stocking.
Answered by Rakesh Chahar
Asked by Rishi Mody: Was the strong technical/comfort foam volume growth driven by one-off B2B orders or channel stocking ahead of price hikes?
p. 14
“when the war broke, we were in a much better position to continue serviceability in the market. So there were smaller players who were finding it difficult to maintain their supply chains.”
Rakesh Chahar, page 14 of the filed PDF · View the filing
Management confirmed it remains open to a sale but has no immediate plans and continues to run the business as needed.
Answered by Rahul Gautam
Asked by Rishi Mody: Is the company still exploring a sale of its international business?
p. 15
“we are open to that, but that doesn't mean that we are switched off from it. We will pursue that and wait for the right person to come at or the right party to come at the right time.”
Rahul Gautam, page 15 of the filed PDF · View the filing
Management said it secured a new supplier partner across Korea, Japan and China to hedge supply risk and avoided any stock-out, though at a higher cost.
Answered by Rakesh Chahar
Asked by Vignesh Iyer: How did the company manage TDI procurement when major suppliers like GNFC faced shutdowns during the conflict?
p. 17
“we had also taken an in-principle decision to also hedge our risk. So we had introduced a new supplier partner and who was very supportive during this time, and we were able to meet the requirements.”
Rakesh Chahar, page 17 of the filed PDF · View the filing
Risks flagged
Evolving Middle East conflict affecting raw material availability and supply chains
p. 3
“We are also cautious and remain watchful of the evolving situation in the Middle East and its potential implications for raw material availability and the supply chains.”
Rahul Gautam, page 3 of the filed PDF · View the filing
Highly volatile raw material (TDI and polyol) pricing
p. 8
“Now you suddenly have INR40 and INR50 at a time happening multiple times in a month.”
Rahul Gautam, page 8 of the filed PDF · View the filing
Supply disruption at key TDI supplier GNFC during the conflict
p. 17
“the GNFC was shut down first on a technical reason and then later also because of the -- in the month of March because of the natural gas energy.”
Rakesh Chahar, page 17 of the filed PDF · View the filing
Volatility in raw material pricing driven by supply and demand dynamics
p. 8
“So it's a play of supply chain currently.”
Rakesh Chahar, page 8 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.