Sheela Foam Q1 FY27: Crossing INR 1,000 Crore Revenue, While Managing Raw Material Volatility

Consolidated revenue was INR 1,032 crore (up 26 percent YoY), EBITDA was INR 109 crore (up 45 percent YoY) with margin of 10.6 percent, and PAT was INR 62 crore (vs INR 7 crore in Q1 FY26).

Standalone revenue (SFL plus KEL) was INR 761 crore (up 20 percent YoY) and EBITDA was INR 68 crore (up 13 percent YoY) with EBITDA margin of 9.0 percent.

Mattress volumes grew 6 percent and value grew 15 percent YoY. Foam volumes grew 4 percent and value grew 26 percent YoY, with e-commerce and U2O cited as key growth drivers.

Australia (Joyce) revenue was INR 120 crore with EBITDA margin of 12.8 percent. Spain (Interplasp) revenue was INR 133 crore with EBITDA margin of 14.7 percent.

Management stated polyol and TDI can be 65 to 70 percent of COGS and that sharp price swings and inventory carrying can compress gross margins in the near term; volatility may continue for a couple of months.

Management said 42 COCO stores were operational and they plan to ramp to 50 over the next quarter. COCO capex is about INR 27 lakh per store plus INR 20 to 22 lakh working capital, with store sizes around 2,000 sq ft.

Management reiterated a target of 15 percent growth with 15 percent EBITDA margin, while also noting volatility could affect near-term margins. FY27 free cash flow was guided at about INR 150 to 200 crore to be used for India debt repayment, but the balance sheet is not expected to be debt-free by year end.