Sheela Foam Limited has informed the Exchange about Transcript
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Awaiting price reaction for this filing.
Sheela Foam reported Q1 FY26 India business revenue of Rs. 644 crore (up 5% YoY) with core EBITDA of Rs. 75 crore, a sharp 47% jump. Core EBITDA margins expanded significantly from 8.4% to 11.7%, driven by 10% mattress volume growth (Sleepwell +22%, Kurlon +6%) and Kurlon integration synergies. Gross margins stand at 43.5%, ~400 bps above pre-acquisition levels. The company plans to open 1,000 new showrooms this fiscal year (392 signed in Q1), with e-commerce targeting 50% growth and small-town brands Tarang/Aaram expected to cross Rs. 100 crore annually. CFO Amit Gupta outlined a debt reduction roadmap: asset monetization of Rs. 200 crore (Rs. 40 crore already done) plus internal accruals of Rs. 150-200 crore PAT, targeting net debt reduction of Rs. 300-350 crore from current Rs. 700-800 crore to Rs. 300-400 crore. Furlenco posted Rs. 4 crore PAT in Q1 versus full-year profitability in FY25, targeting Rs. 370 crore revenue in FY26.
Positive for shareholders: strong margin recovery post-Kurlon integration, clear 3-year EBITDA margin target of 14-15%, and a concrete debt reduction plan should ease interest burden. Volume growth is accelerating month-on-month (July > June > April), and new product launches in the sub-Rs. 10,000 segment open a Rs. 12,500 crore addressable market, supporting future revenue momentum.