Sheela Foam (SFL) Q4 25/26 earnings summary

Executive summary

• Achieved record annual foam production, top line, and EBITDA in FY26, driven by successful Kurl-On integration and strong performance from both Sleepwell and Kurl-On brands.

• Consolidated operating revenue rose 11% YoY to ₹3,821 cr in FY26, with core EBITDA up 46% to ₹414 cr and PAT at ₹161 cr, reflecting strong profitability and margin expansion.

• Resilient supply chain management ensured uninterrupted raw material availability despite Middle East volatility.

• Audited standalone and consolidated financial results for FY26 were approved, with a final dividend of ₹1 per equity share (20% of face value) recommended, subject to shareholder approval.

• Auditors issued unmodified opinions on both standalone and consolidated results, confirming compliance with Indian Accounting Standards and SEBI regulations.

Financial highlights

• Consolidated Q4 revenue grew 24% YoY to ₹1,050 cr; FY26 revenue up 11% YoY to ₹3,821 cr.

• Q4 consolidated core EBITDA rose 90% YoY to ₹121 cr; FY26 core EBITDA at ₹414 cr, up 46% YoY.

• Q4 consolidated PAT at ₹92 cr (7x YoY); FY26 PAT at ₹161 cr, up 78% YoY.

• FY26 consolidated gross margin expanded 106 bps YoY to 43.7%; core EBITDA margin improved 261 bps to 10.8%.

• Standalone revenue for FY26 was ₹2,962.27 cr, up from ₹2,675.25 cr; standalone net profit was ₹130.57 cr, up from ₹92.70 cr.

Outlook and guidance

• Targeting growth rate above 15% due to higher raw material prices and product line expansion.

• Continued focus on expanding into related product categories, digital channels, and deepening penetration in e-commerce and B2C segments.

• CapEx for FY27 expected between ₹125-150 cr, including maintenance and new store openings.

• The Board recommended a final dividend of ₹1 per share for FY26, to be paid within 30 days of shareholder approval.