1. At a Glance
Sheela Foam Ltd is what happens when India’s most famous mattress brand wakes up one morning and realises: “Boss, we’ve bought too many pillows, too fast.”
Market cap sitting around ₹5,687 crore, stock price hovering near ₹524, down ~27% in 3 months and ~42% in one year—this mattress hasn’t given investors much rest lately.
Q3 FY26 results look flashy on paper: revenue up 11% YoY to ₹1,074 crore, PAT up 212% YoY to ₹53 crore. Sounds sexy, right? But zoom out and you’ll see ROCE at 3.5%, ROE at 2%, and debt ballooning past ₹1,250 crore.
At 60× P/E, Sheela Foam is priced like a Silicon Valley SaaS startup but performing like a tired factory with back pain. Is this a temporary post-acquisition hangover or a structural mattress sag? Let’s peel the foam layer by layer.
2. Introduction – From Sleepwell to “Sleep-Deprived Shareholders”
Sheela Foam has been around since 1971. That’s longer than most Indian investors’ patience cycles. It built an empire on PU foam, dominated the mattress market, and became synonymous with Sleepwell—the brand your parents trusted without Googling reviews.
Then ambition kicked in.
First came international expansion (Australia, Spain).
Then came Furlenco (because furniture rental is apparently a logical mattress adjacency).
Then came Kurlon—the big fat ₹2,035 crore acquisition that changed everything.
Today, Sheela Foam is no longer a simple foam company. It’s a brand consolidator, distribution monster, and balance-sheet stress test rolled into one. The market is asking a simple question:
Can this company digest what it swallowed?
3. Business Model
– WTF Do They Even Do?
Imagine explaining Sheela Foam to a lazy investor:
“They make foam.
They turn foam into mattresses.
They slap famous brand names on it.
They sell it everywhere—offline, online, even while you’re scrolling Instagram at 2 AM.”
Broadly, four verticals:
- Mattresses – The golden child
Sleepwell, Kurlon, FeatherFoam. Spring, memory foam, orthopedic, techy-sounding ranges that mostly feel the same but cost different. - Comfort Foam & Home Care
Pillows, cushions, bedsheets—basically monetising insomnia. - Technical Foam
Automotive, specialty foams. Less glamorous, more stable. - Furniture Foam
Inputs for sofas, chairs, and now Furlenco-style rental furniture.
The real edge? Distribution.
Over 16,000+ outlets, including 6,000 exclusive brand stores. That’s not a moat—it’s a concrete wall.
But walls are expensive to maintain.
4. Financials Overview – Numbers That Look Good Until You Blink
| Metric | Latest Qtr (Q3 FY26) | YoY Qtr | Prev Qtr | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 1,074 | 967 | 875 | 11.1% | 22.7% |
| EBITDA (₹ Cr) | 114 | 88 | 87 | 29.5% | 31.0% |
| PAT (₹ Cr) | 53 | 17 | 10 | 212% | 430% |
| EPS (₹) | 4.80 | 1.54 | 0.89 | 212% | 439% |
Annualised EPS (Q3 rule):
Average of Q1–Q3 FY26 EPS × 4
≈ ₹8.2–8.3, matching reported trailing EPS.
Witty takeaway:
Yes, profits bounced back. But this is recovery from a very low base
