Sheela Foam (SFL) Q2 26/27 earnings summary

Executive summary

• Q2 consolidated revenue rose 19% YoY to ₹1,045.03 crore; operating EBITDA was ₹87 crore, flat YoY, and PAT was ₹46.42 crore versus ₹9.96 crore.

• H1 consolidated revenue increased 22% to ₹2,076.97 crore, operating EBITDA rose 23% to ₹200 crore, and PAT reached ₹108.76 crore versus ₹16.51 crore.

• Pricing actions and brand investment supported customer service and absolute EBITDA amid raw-material inflation, logistics disruption and weaker affordability.

Financial highlights

• Q2 reported EBITDA was ₹83 crore; operating EBITDA margin was 8.4%. H1 reported EBITDA was ₹192 crore versus operating EBITDA of ₹200 crore.

• H1 diluted EPS was ₹9.85 versus ₹1.48 in the prior-year period; cash EPS was ₹18.7. Q2 diluted EPS was ₹4.2 versus ₹0.9.

• Standalone revenue rose 18% to ₹1,542.19 crore and EBITDA grew 5% to ₹129 crore in H1; PAT was ₹74.78 crore.

• Q2 standalone revenue was ₹781.27 crore and PAT was ₹30.84 crore, versus ₹666.80 crore and ₹5.65 crore in Q2 FY26.

Outlook and guidance

• FY27 pro forma revenue target is ₹5,000 crore, comprising ₹4,300–4,400 crore from existing operations and ₹500–600 crore from Furlenco; EBITDA target exceeds ₹600 crore.

• Furlenco is expected to contribute ₹200 crore EBITDA this year and existing operations ₹400–450 crore.

• With raw materials and logistics normalizing, ~12% EBITDA margin is considered reasonable for existing operations; 13%–15% next-year margins depend on conditions stabilizing.

• Management targets 15% annual growth; easing conditions would favor volume growth, while continued inflation would mean value-led growth and continued focus on margins.

• H2 mattress volume growth depends on raw-material prices and Middle East disruption; stabilization or easing is expected to support volumes.