1. Opening Hook
Just when India was done obsessing over AI and EVs, Sheela Foam decided to make mattresses sexy again. With Kurlon officially tucked in post-merger and 420 new showrooms mushrooming like monsoon mold, the company finally found its growth spring. Rahul Gautam’s strategy? Fewer power naps, more power brands.
Margins popped, Furlenco’s furniture dreams got a boost, and India’s sleep quality is officially an earnings story now. But hang on—foam prices are still too soft for comfort, and debt dreams aren’t gone yet. Stick around—this gets bouncier than a memory foam pillow.
2. At a Glance
- Revenue up 5%:Mattress volumes did the heavy lifting while foam just cushioned the numbers.
- Core EBITDA up 31%:Finally, profits woke up from a long nap.
- EBITDA margin 10%+:The cushion business is fluffier than ever.
- PAT ₹17 Cr (Adj. ₹35 Cr):Foreign currency blues kept profit tossing and turning.
- Debt ₹800 Cr:The foam may be light, but the balance sheet isn’t.
- Store count +420:Sleepwell and Kurlon are invading every mall and mofussil town.
3. Management’s Key Commentary
“We recorded core EBITDA margins above 10% on a consolidated basis.”(Translation: For the first time in a while, the numbers didn’t deflate like an air mattress.) 😏
“Kurlon is now growing faster than ever before.”(Translation: The merger finally got some bounce—no more dead weight.)
“We opened 420 new showrooms and expect to hit 800 by year-end.”(Translation: You can’t escape us; we’ll sell you a mattress before you even yawn.)
“Furlenco achieved ₹9 Cr PAT in H1 with ₹350 Cr annualized run rate.”(Translation: That furniture bet is finally earning its rent.)
“TDI prices declined from ₹196 to ₹172; Polyol from ₹117 to ₹107.”(Translation: Raw materials got cheaper, and management is pretending it’s all operational genius.)
“Debt-free in 2–3 years via monetization and internal accruals.”(Translation: If all goes well, by FY28 we’ll sleep easy without bank nightmares.)
“Our ESG focus remains strong—25% solar energy, 15% waste reduction.”(Translation: Even the mattresses are feeling green guilt now.) 🌱
4. Numbers Decoded
| Metric | Q2 FY26 | YoY Change | Commentary |
|---|---|---|---|
| Revenue | ₹1,696 Cr | +5% | Mattress segment led, foam played filler |
| Core EBITDA | ₹177 Cr | +31% | Margin magic post-Kurlon integration |
| EBITDA Margin | 10.4% | +210 bps | Cost synergies finally visible |
| Adjusted PAT | ₹35 Cr | NA | MTM & forex hit reported profit |
| Net Debt | ₹800 Cr | – | ₹450 Cr India, ₹350 Cr overseas |
| Showrooms Added | 420 | – | Aim: 800 by FY26 end |
| Mattress Volume Growth | +13% | – | Sleepwell +14%, Kurlon +13% |
| Foam Volume Growth | +9% | – | Comfort and technical foams steady |
| E-commerce Growth | +73% | – | Sleepwell.com finally clicks |
Sheela’s growth is solid; now they’re just hoping not to snore through margin discipline.
5. Analyst Questions
Q:How will you defend market share as rivals raise capital?A:“We’re opening 800 stores.” (Translation: Attack of the mattress clones.)
Q:What’s the status on synergy savings from Kurlon?A:“₹190 Cr achieved; ₹60 Cr more coming.” (Translation: We’re squeezing every inch of foam.)
Q:Why flat realizations despite higher sales?A:“Premiumizing showrooms.” (Translation: Higher-end beds for higher-end excuses.)
Q:Furlenco outlook?A:“Profitable, raising ₹125 Cr, IPO in sight.” (Translation: Our startup child finally moved out.)
Q:E-commerce margins?A:“Now profitable.” (Translation: SleepX nightmares replaced by Sleepwell dreams.)
6. Guidance & Outlook
Management’s FY26 mantra: “Expand, optimize, and maybe sleep a bit.” India drives 75% of sales, and the plan is crystal clear—grow mattresses faster than foam, grow stores faster than
