Sheela Foam (SFL) Q1 26/27 earnings summary

Executive summary

• Achieved record consolidated revenue of ₹1,032 crore in Q1 FY27, up 26% year-over-year, with EBITDA rising 45% to ₹109 crore and PAT at ₹62 crore, reflecting strong operational performance and substantial year-on-year growth.

• Standalone Indian business saw 20% revenue growth to ₹761 crore and 13% EBITDA growth to ₹68 crore year-over-year; mattress value up 15% and foam value up 26%.

• E-commerce sales grew 69% on brand.com and 19% on platforms, with overall category growth of 30% in value and 23% in volume.

• U2O (unorganized to organized) business expanded to 10,000 dealers, driving 81% value growth and 19% volume growth year-over-year.

• Board approved unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, with review by independent auditors confirming compliance and no material misstatements.

Financial highlights

• Consolidated revenue rose 26% year-over-year to ₹1,032 crore; consolidated EBITDA up 45% to ₹109 crore; PAT reached ₹62 crore with a PAT margin of 6.0%.

• Standalone revenue grew 20% to ₹761 crore; standalone EBITDA up 13% to ₹68 crore.

• Gross margin declined year-over-year by 405 bps to 40.6% on a consolidated basis; standalone EBITDA margin decreased by 51 bps to 9.0%.

• Standalone net profit rose to ₹43.94 crore from ₹10.70 crore year-over-year; consolidated net profit attributable to shareholders was ₹61.44 crore, up from ₹6.54 crore year-over-year.

• Exceptional gain of ₹6.26 crore from sale of land/building at Haridwar in the quarter.

Outlook and guidance

• Management targets 15% growth and 15% EBITDA margin for the year; expects double-digit volume growth as volatility subsides.

• International operations expected to grow at 5% in local currency with sustainable EBITDA margins of 10-12%.

• Margin improvement anticipated as raw material volatility eases.

• Continued focus on high-margin products and digital channels to drive growth.

• Board recommended a final dividend of ₹1 per share for FY26, approved and paid in July 2026.