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.
Strong Mattress Growth: Mattress volumes grew by 13% in Q2 and 11% in H1 FY'26, outpacing foam business growth. Both Sleepwell and Kurlon brands contributed, with e-commerce and entry-level products (Tarang and Aaram) seeing sharp volume increases.
Margin Expansion: Consolidated core EBITDA margin topped 10% for both quarters, up 210 bps YoY driven by synergy from the Kurlon merger, cost initiatives, and premiumization efforts.
Guidance Reaffirmed: Management expects 12–15% top-line growth going forward and EBITDA margin improvement toward 14–15% next year, supported by showroom expansion and product mix.
Debt Reduction Plans: Net debt stands at around INR 800 crores; management aims to be net cash by FY'28 through asset monetization and cash flows.
Store Expansion: 420 net new exclusive showrooms opened in H1 FY'26, with a target of 800 for the year and a longer-term goal of 10,000 stores in 3–4 years.
Furlenco Turnaround: Furlenco added 34,000 customers in H1 FY'26, is now PAT positive, and targets INR 500 crores turnover next year with continued Sheela Foam product supply.
E-commerce Acceleration: E-commerce revenues targeted at INR 200–275 crores for FY'26, with a shift to higher-margin brand.com sales and a three-year goal of 30% market share in the INR 2,000 crore online space.
Raw Material Impact: Decline in TDI and polyol costs has helped margins in technical and comfort foam, though mattress pricing is less sensitive to input cost swings.
