Sheela Foam: Q2 & H1 FY26 Performance Highlights

Sheela Foam Limited has delivered a robust performance in Q2 and H1 FY26, showcasing significant growth across its core businesses. The company reported a consolidated operating revenue of INR 1696 crore for H1 FY26, marking a 5% year-on-year increase. Core EBITDA surged by 32% to INR 177 crore, with margins expanding by 210 basis points to 10.4%. This strong financial showing reflects the successful execution of strategic initiatives and the positive impact of the Kurlon merger.

Segmental Performance and Growth Drivers

The mattress business was a key growth driver, with volumes increasing by 13% in Q2 FY26 and 11% in H1 FY26. Both Sleepwell and Kurlon brands contributed significantly, with Sleepwell volumes growing by 14% and Kurlon by 13% in Q2 FY26. The foam business also registered a healthy volume growth of 9% in Q2 FY26 and 8% in H1 FY26, despite lower raw material prices impacting value growth. Technical foams and comfort foams saw volume increases of 11% and 8% respectively in H1 FY26. The company's e-commerce segment demonstrated exceptional traction, with 73% volume growth and 70% value growth, highlighting the success of its digital strategy. The 'Tarang & Aaram' range, catering to the lower end of the market, also saw substantial volume growth of 58%.

Strategic Initiatives and Market Expansion

Sheela Foam is aggressively expanding its geographical footprint and distribution network. In H1 FY26, 420 net new showrooms were launched, bringing the total touchpoints to approximately 11,300. The company aims to add a total of 800 new showrooms by the end of FY26, with a particular focus on expanding the Kurlon brand's presence in West and North India. International expansion is also underway, with retail presence growing in the UAE, now boasting 7 brand showrooms across all emirates. The company anticipates further expansion across the GCC region. The B2C business now constitutes 55% of the total business, an increase of almost 5% from the previous half-year.

Sustainability and Future Outlook

Sheela Foam is deeply committed to its ESG framework, aligning with four Sustainable Development Goals. The company aims to increase solar energy generation from 25% in 2025 to 37% by 2030 and reduce waste from 15% to 13% by 2030, with a goal of 100% waste monetization. Gender diversity targets include increasing female workforce participation from 6% to 10% by 2030. These initiatives underscore a proactive approach to sustainable growth.

Furlenco, the furniture rental subsidiary, continues its growth trajectory, adding over 34,000 net customers in H1 FY26 and achieving a PAT of INR 9 crore. The company is contributing INR 30 crore to Furlenco's INR 125 crore equity raise, supporting its goal of reaching INR 500 crore turnover in the coming year. Management anticipates a top-line growth rate of 12-15% for the India business, with profitability margins expected to reach 14-15% in the next to next year. The company also expects raw material prices to start increasing in the next two to three months, which could impact gross margins. Sheela Foam's strategic clarity and disciplined execution position it for sustained growth and enhanced shareholder value in the evolving home comfort market.