Sheela Foam Ltd
NSE:SFL
Sheela Foam Ltd
Sheela Foam Ltd., a luminary in the Indian mattress and foam industry, has carved a niche for itself through innovative business strategies and a keen understanding of consumer needs. Founded in 1971, the company has grown from a modest family business into a powerhouse in the polyurethane foam sector. At the heart of its operations lies a robust manufacturing framework, producing a wide array of foam-based products ranging from mattresses to pillows, cushioning essentials for furniture and specialized foams for industrial use. The flagship brand, Sleepwell, has become synonymous with comfort and quality, making it a household name in India. This success is underpinned by a meticulously structured supply chain and retail network that ensures product availability across urban and rural landscapes, allowing Sheela Foam to capitalize on the ever-expanding middle-class market.
Moreover, Sheela Foam's business model emphasizes value innovation, leveraging technology and R&D to deliver cutting-edge products like orthopedically beneficial mattresses and environmentally friendly foams. The company understands that its profitability is intertwined with its ability to adapt and innovate, keeping in step with consumer preferences and economic trends. Its strategy encompasses both direct sales and a widespread dealer network, enabling efficient market penetration. While maintaining a strong domestic footprint, Sheela Foam has also extended its reach internationally, with operations in Australia under the brand Joyce Foam, thus broadening its revenue stream. This dual strategy of national dominance coupled with international foray exemplifies how Sheela Foam Ltd. balances scalability with sustainability, ensuring its position as a resilient leader in the industry.
Sheela Foam Ltd., a luminary in the Indian mattress and foam industry, has carved a niche for itself through innovative business strategies and a keen understanding of consumer needs. Founded in 1971, the company has grown from a modest family business into a powerhouse in the polyurethane foam sector. At the heart of its operations lies a robust manufacturing framework, producing a wide array of foam-based products ranging from mattresses to pillows, cushioning essentials for furniture and specialized foams for industrial use. The flagship brand, Sleepwell, has become synonymous with comfort and quality, making it a household name in India. This success is underpinned by a meticulously structured supply chain and retail network that ensures product availability across urban and rural landscapes, allowing Sheela Foam to capitalize on the ever-expanding middle-class market.
Moreover, Sheela Foam's business model emphasizes value innovation, leveraging technology and R&D to deliver cutting-edge products like orthopedically beneficial mattresses and environmentally friendly foams. The company understands that its profitability is intertwined with its ability to adapt and innovate, keeping in step with consumer preferences and economic trends. Its strategy encompasses both direct sales and a widespread dealer network, enabling efficient market penetration. While maintaining a strong domestic footprint, Sheela Foam has also extended its reach internationally, with operations in Australia under the brand Joyce Foam, thus broadening its revenue stream. This dual strategy of national dominance coupled with international foray exemplifies how Sheela Foam Ltd. balances scalability with sustainability, ensuring its position as a resilient leader in the industry.
Revenue Growth: Consolidated revenue grew 7% year-on-year to INR 2,771 crores for the 9 months ended December '25, with strong contributions from mattress and foam segments.
Margin Expansion: EBITDA margin rose to 10.9% in Q3, up 220 basis points year-on-year, driven by Kurlon synergy and operating leverage; management targets further improvement toward 15%.
Kurlon Integration: Full merger of Kurlon completed, with operational turnaround and synergy benefits nearly fully realized; remaining synergy gains expected to accrue by Q1 FY '27.
Strong Volume Growth: Mattress volumes grew 11% and foam volumes grew 20% year-on-year in Q3, reflecting ongoing expansion and demand.
Price Increases: Recent price hikes of 4–5% taken in both mattress and foam segments are not expected to materially impact volumes, with the full effect to be seen in Q4.
Debt Reduction: Net debt reduced significantly through debt repayment and asset monetization; current net debt stands between INR 600–650 crores at the group level.
International & E-commerce: International business in Australia and Spain achieved Q3 EBITDA margins of 12%; e-commerce revenue grew 53% year-on-year to INR 180 crores for the 9 months.
Guidance: Management reiterated medium-term guidance for 15% revenue growth and 15% EBITDA margin in the India business, with overseas operations expected to achieve around 12% margin.
