Sheela Foam (SFL) Q4 24/25 earnings summary

Executive summary

• Achieved consolidated FY25 revenue of ₹3,439 crore, up 15% year-over-year, with India business leading growth and margin improvement; standalone revenue reached ₹2,588 crore.

• FY25 marked the first full year of combined operations with Kurlon, with strategic cost rationalization and integration improving profitability.

• Mattress segment led value and volume growth, supported by new product launches, showroom expansion, and dealer network growth.

• Furlenco achieved ARR of ₹300 crore and first full year of PAT profitability, expanding into new cities.

• Monetized three manufacturing facilities, reducing total plants and optimizing operational efficiency.

Financial highlights

• Standalone FY25 revenue: ₹2,588 crore; EBITDA: ₹235 crore (9% margin); PAT: ₹112 crore.

• Consolidated FY25 revenue: ₹3,439 crore; EBITDA: ₹286 crore (8% margin); PAT: ₹97 crore.

• Q4 consolidated revenue: ₹850 crore; EBITDA: ₹69 crore; PAT: ₹22 crore.

• Gross margin improved to 42.5% in India and 42.7% consolidated for FY25.

• Profitability impacted by higher interest costs from Kurlon acquisition debt and increased depreciation.

Outlook and guidance

• Targeting 15% annual revenue growth in India for the next 2-3 years, with EBITDA margins expected to reach 13%-14%.

• Focus on deleveraging Indian balance sheet within 2-3 years, reducing interest costs to working capital levels.

• No new acquisitions planned; focus remains on consolidating and growing core brands.

• CapEx for next fiscal targeted at ₹75 crore in India.

• Ongoing regulatory processes for amalgamation schemes and operational efficiency.