Sheela Foam Q3 Results 2026: Net Profit Jumps 3x to ₹52.57 Crore

Sheela Foam Limited, the manufacturer of the well-known Sleepwell mattress brand, has reported a significant turnaround in its financial performance for the third quarter of the fiscal year 2026. The company announced a consolidated net profit of ₹52.57 crore for the quarter ended December 31, 2025. This represents a substantial increase from the ₹16.8 crore reported in the corresponding period of the previous financial year. The results, released on February 3, 2026, highlight a period of robust volume growth and successful strategic integration following recent acquisitions.

Revenue Growth Driven by Volume Expansion

The company's revenue from operations for the third quarter increased by 11.1 percent year-on-year, reaching ₹1,075 crore. This is a notable rise from the ₹967 crore recorded in the same quarter last year. The growth was primarily driven by higher volume expansion across both the mattress and foam segments. The mattress division recorded an 11 percent growth in volume, while the foam segment saw a more aggressive 20 percent increase during the quarter. This performance indicates a strong consumer demand for branded comfort products in the Indian market.

Segment Analysis: Mattresses and Foam

The mattress segment remains the core driver for Sheela Foam, benefiting from the dual-brand strategy involving Sleepwell and the recently acquired Kurlon. The 11 percent volume growth in mattresses suggests that the company is successfully capturing market share in the organized bedding space. Meanwhile, the foam segment's 20 percent growth reflects strong demand from industrial and B2B sectors, including automotive and furniture manufacturing. The company's ability to scale both segments simultaneously has contributed to the overall top-line improvement.

Nine-Month Financial Overview

For the nine-month period ending December 2025, Sheela Foam reported a consolidated revenue of ₹2,771 crore, marking a 7 percent increase from ₹2,590 crore in the previous year. This growth was supported by an 11 percent volume rise in mattresses and a 12 percent rise in foam. While the net profit for the nine-month period stood at ₹69 crore, it is important to note that the previous year's figure of ₹77 crore included a one-time insurance claim of ₹31 crore. Adjusting for such items, the underlying profitability shows a positive trend.

The Impact of Kurlon Integration

Rahul Gautam, the Chairman and Managing Director of Sheela Foam, attributed the strong performance to the successful integration of Kurlon. The acquisition has begun delivering tangible benefits, driving a turnaround in the company's operational efficiency. The business has entered a phase of double-digit growth, with the Kurlon brand strengthening the company's regional market presence. The synergy between Sleepwell and Kurlon has allowed the company to leverage a vast distribution network of over 20,000 touchpoints across India.

Digital Transformation and E-commerce Success

A standout feature of the Q3 results was the exceptional performance of the e-commerce channel. E-commerce volumes grew by 138 percent year-on-year on the company's own website and 39 percent on third-party platforms during the first nine months of the fiscal year. This digital push has made Sheela Foam a leading player in the online mattress market. The company has also activated over 3,000 retail outlets on digital discovery platforms to drive hyperlocal footfall, bridging the gap between online search and offline purchase.

Operational Efficiency and Margin Expansion

Profitability metrics showed marked improvement during the quarter. The core EBITDA for the nine-month period grew by 34 percent to ₹293 crore, with margins expanding by 213 basis points to 10.6 percent. For the third quarter specifically, EBITDA rose 30 percent to ₹115 crore, with the margin improving to 11 percent from 9.11 percent a year ago. These improvements are a result of optimized operating facilities, better raw material procurement, and reduced logistics costs following the merger of operations.

Global Operations and Manufacturing Reach

Sheela Foam continues to maintain a strong international footprint with manufacturing facilities in Australia and Spain. The company operates 10 foaming plants across three continents, producing over 100 types of foam. The Australian subsidiary, Joyce Foam, and the Spanish unit, Interplasp, have both contributed to the sequential improvement in cash generation. This global presence allows the company to stay at the forefront of manufacturing technology, such as Variable Pressure Foaming (VPF), which reduces environmental impact.

Market Reaction and Stock Performance

Following the announcement of the Q3 results, shares of Sheela Foam Ltd saw positive momentum on the stock exchanges. The stock closed at ₹525.75 on the BSE, marking an increase of 1.47 percent. Investors responded favorably to the tripling of net profit and the management's optimistic outlook on sustained growth. The company's market capitalization currently stands at approximately ₹5,762 crore, reflecting its position as a dominant player in the Indian consumer durables and furniture furnishing sector.

Strategic Investments and Future Outlook

Looking ahead, Sheela Foam remains focused on its premiumization strategy and expanding its reach into smaller Indian towns. The 'Small Town India' initiative has already reached over 5,800 retail touchpoints. Additionally, the company's investment in Furlenco, an online furniture rental platform, is expected to provide further diversification. With the festive season and urban migration driving demand for quality home comfort products, the management is confident in maintaining double-digit growth and creating long-term value for stakeholders through robust cash generation.