Sheela Foam (SFL) Q2 24/25 earnings summary

Executive summary

• Achieved successful integration of Kurlon acquisition, with both brands operating synergistically and contributing to growth; consolidated Q2 FY25 revenue reached INR 813 Cr, up 32% YoY.

• Standalone Q2 FY25 revenue rose 42% YoY to INR 602 Cr; EBITDA up 54% YoY to INR 70 Cr, with margin at 11.7%.

• Net profit for Q2 FY25 consolidated was INR 9.32 Cr, down 79% YoY, impacted by higher interest, depreciation, and exceptional items.

• Mattresses now account for over 50% of total revenue, reflecting a strategic shift toward branded B2C business.

• The group continues to focus on both domestic and international markets, with significant non-India revenue and asset base.

Financial highlights

• Standalone Q2 revenue at INR 602 Cr, up 42% YoY; EBITDA at INR 70 Cr, up 54% YoY; EBITDA margin at 12%; net profit at INR 43 Cr, up 12% YoY.

• H1 standalone revenue at INR 1,106 Cr, up 26% YoY; EBITDA at INR 118 Cr, up 11% YoY; net profit at INR 75 Cr, down 7% YoY.

• Consolidated Q2 revenue at INR 813 Cr, up 32% YoY; EBITDA at INR 69 Cr, up 5% YoY; net profit at INR 9 Cr, down 79% YoY.

• H1 consolidated revenue at INR 1,622 Cr, up 29% YoY; EBITDA at INR 129 Cr, down 10% YoY; net profit at INR 56 Cr, down 36% YoY.

• Gross margins improved to 44.9% in Q2 FY25 (consolidated), up from 40.6% in Q2 FY24.

Outlook and guidance

• India business expected to grow 14–15% annually, with EBITDA margin target of 14–15% over three years.

• Consolidated growth guidance at 12–14%, with international business expected to grow 7–10%.

• Return on equity targeted to return to 18%+ within three years post-acquisition.

• Integration initiatives and cost savings from SFL-KEL merger to further augment profitability in H2 FY25.

• Focus on expanding product range and distribution network to drive future growth.