SFLNSESheela Foam LimitedHighNeutral
Announced Tue, 5 Aug · 18:25 IST

Sheela Foam Limited has submitted to the Exchange, the financial results for the period ended Jun 30, 2025.

Revenue Growth 20pctExceptional ItemEbitda Margin CompressionResults View source PDF

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Price reaction · full curve

Awaiting price reaction for this filing.

AI summary

Sheela Foam Limited submitted its Q1 FY26 (quarter ended June 30, 2025) limited reviewed unaudited financial results. Standalone revenue from operations jumped ~38% YoY to ₹696.59 Cr (vs ₹503.69 Cr in Q1 FY25), though standalone profit after tax fell ~25% to ₹24.10 Cr from ₹32.06 Cr, as the year-ago quarter included a ₹11.91 Cr exceptional insurance recovery. Standalone operating margin slipped slightly to 34.0% from 35.0%. On a consolidated basis, revenue rose modestly to ₹821.41 Cr while PAT dropped sharply to ₹7.16 Cr from ₹46.61 Cr, again because the base quarter had ₹30.62 Cr of non-recurring insurance income; consolidated operating margin expanded to 40.1% from 37.8%. Auditor MSKA & Associates issued an unqualified review report with no qualifications or going concern flag. The debt-equity ratio remains comfortable at 0.30 (standalone) and 0.45 (consolidated), and outstanding NCDs were trimmed to ₹543.75 Cr from ₹725 Cr.

Likely market impact

The sharp YoY profit decline looks worse than it is because the base quarter was boosted by one-time insurance recoveries from past fire incidents, so underlying operating performance is broadly stable. Strong standalone revenue growth and a clean auditor report with healthy leverage are positives, and the pending Kurlon amalgamation scheme remains the key future catalyst to watch.