Sheela Foam Q2 FY27 results: net profit ₹46.42 crore vs ₹9.96 crore, revenue up 19.4%

How did Sheela Foam perform in Q2 FY27?

Sheela Foam reported consolidated revenue of ₹1,045.03 crore in Q2 FY27, up ₹170.09 crore or 19.4% from ₹874.94 crore in Q2 FY26 and ₹13.09 crore or 1.3% from ₹1,031.94 crore in Q1 FY27. Total income was ₹1,066.80 crore, up 20.5% year on year and 1.8% sequentially.

EBITDA was ₹83.18 crore, down ₹3.95 crore or 4.5% from Q2 FY26 and ₹25.72 crore or 23.6% from Q1 FY27. The margin fell to 8.0% from 10.0% a year earlier and 10.6% in the previous quarter.

Net profit rose to ₹46.42 crore from ₹9.96 crore in Q2 FY26 but fell from ₹62.34 crore in Q1 FY27. Basic EPS was ₹4.24, compared with ₹0.88 a year earlier and ₹5.63 in the previous quarter. On a standalone basis, revenue was ₹781.27 crore and net profit was ₹30.84 crore.

What changed in Sheela Foam's costs and profit?

Against Q2 FY26, cost of materials rose ₹102.76 crore or 20.3% to ₹607.85 crore, while employee cost increased ₹19.73 crore or 17.5% to ₹132.39 crore. Total expenses rose ₹148.08 crore or 17.1% to ₹1,013.48 crore, above the 19.4% increase in revenue.

Finance costs fell ₹10.59 crore or 37.7% to ₹17.48 crore and depreciation declined ₹15.37 crore or 31.0% to ₹34.15 crore. Other expenses increased ₹13.08 crore or 6.8% to ₹204.30 crore. No exceptional item was reported in Q2 FY27, against an exceptional charge of ₹7.84 crore in Q2 FY26.

Other income rose ₹11.24 crore or 106.7% to ₹21.77 crore. Profit before tax increased ₹41.09 crore or 336.0% to ₹53.32 crore, while tax expense rose ₹7.30 crore or 158.0% to ₹11.92 crore. Management cited raw-material and freight inflation as margin pressures and said a one-time A.H. Beard receivable provision affected reported EBITDA.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue rose 22.4% to ₹2,076.97 crore from ₹1,696.35 crore in H1 FY26. Total income increased 23.2% to ₹2,114.87 crore from ₹1,716.62 crore, while profit before tax rose 506.6% to ₹132.91 crore.

Net profit increased 558.8% to ₹108.76 crore from ₹16.51 crore, and basic EPS rose to ₹9.87 from ₹1.48. The investor presentation reported H1 operating EBITDA of ₹200 crore, up 23%, and consolidated gross margin of 40.4% against 44.7%.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹5,168.58 crore against ₹5,116.77 crore at 31 March 2026, while total equity rose to ₹3,364.04 crore from ₹3,260.25 crore. Borrowings declined to ₹853.35 crore from ₹907.98 crore and cash increased to ₹41.2 crore from ₹33.12 crore.

Inventories increased to ₹452.3 crore from ₹392.6 crore, trade receivables rose to ₹495.45 crore from ₹441.53 crore and trade payables increased to ₹481.07 crore from ₹456.52 crore. For H1 FY27, operating cash flow was ₹121.83 crore against ₹117.8 crore in H1 FY26.

Investing cash flow was negative ₹25.67 crore against positive ₹196.95 crore a year earlier, while financing cash flow was negative ₹88.35 crore against negative ₹329.59 crore. Capital expenditure was ₹46.48 crore in H1 FY27 compared with ₹62.5 crore in H1 FY26.

How has Sheela Foam done over the last 8 quarters?

Revenue rose year on year in each of the last eight quarters, while profit rose year on year in each of the last five quarters. Over the reported period, revenue reached its highest level in Q2 FY27 at ₹1,045.03 crore and its lowest in Q4 FY25 at ₹849.60 crore.

Net profit peaked at ₹91.77 crore in Q4 FY26 and bottomed at ₹7.16 crore in Q1 FY26. It fell to ₹46.42 crore in Q2 FY27 from ₹62.34 crore in Q1 FY27. EBITDA margin peaked at 11.1% in Q4 FY26 and fell to 8.0% in Q2 FY27, its lowest level in the series.

What else did the company announce?

The board approved the unaudited standalone and consolidated financial results for the quarter and half-year ended 30 September 2026 at its meeting on 2 November 2026. The company also filed an investor presentation for the results and a nil security-cover certificate for unsecured, redeemable, listed, taxable non-convertible debentures. The available same-day filings do not mention a dividend, fund raise or appointment.

What did Sheela Foam's management say?

Management said the company’s priorities included assured raw-material procurement through long-standing supplier relationships, price increases in mattresses and foam, and higher brand investment. It cited raw-material inflation, including polyol +65%, TDI +33% and crude oil +50%, alongside shipping disruption and shipping freight +300%.

Management said affordability was lower and the festive season had shifted. It reported H1 standalone mattress volume growth of 1%, foam volume decline of 1% and furniture cushioning volume decline of 11%; Q2 mattress and foam volumes fell 3% and 5%. The presentation gave no financial revenue or EBITDA outlook.

Management said Furlenco became a subsidiary effective 1 October 2026. It also presented sustainability targets for 2030, including 10% gender diversity and 5.4MW solar energy capacity, alongside FY30 targets of 13% waste-generation reduction, 39 KL/Person water-consumption intensity, 100% waste monetisation and ISO 45001 safety standards.

Management said a one-time A.H. Beard receivable provision reduced Australia’s H1 reported operating EBITDA margin to 10.2% from 13.4%, while Q2 fell to 7.6% from 10.7%. The presentation also noted a 1000+ kWp solar project in progress at Erode, Talwada and Nandigram, a planned 30 KLD STP at Gwalior, and new Sleepwell product launches.

How did Sheela Foam shares react?

The results were filed after market hours. From the price when the filing appeared, Sheela Foam fell 2.1% after 5 minutes, 1.6% after 15 minutes and 2.3% after 30 minutes. On the reaction day, the stock closed 7.7% below its previous close, and by the next day’s close it remained 7.7% below that pre-results close.

The Furniture Home Furnishing industry’s median move was 0.1% lower on the reaction day and 1.0% higher by the next day’s close. Sheela Foam therefore underperformed the industry median by 7.6 percentage points on the reaction day and 8.7 percentage points by the next day’s close.

Earlier reaction-day moves were mixed: the stock rose 0.7% on 4 August 2026, 11.8% on 14 May 2026 and 13.9% on 3 February 2026, before falling 5.3% on 4 November 2025, 3.1% on 5 August 2025, 1.8% on 14 May 2025, 1.8% on 31 January 2025 and 1.8% on 29 October 2024.