Sheela Foam: Business Overview & Financial Analysis
Sheela Foam is a major Indian mattress, foam, and home comfort product manufacturing enterprise headquartered in Noida, Uttar Pradesh. Promoted by Rahul Gautam and family, the company manufactures flexible polyurethane (PU) foam, ergonomic mattresses, bedding accessories, and technical foam components for automotive, acoustic, footwear, and garment industries across India, Australia, and Europe under flagship brands including 'Sleepwell', 'Kurl-on', 'Tulsi', and 'Joyce'.
Brand Portfolio & Revenue Breakdown of Sheela Foam (FY2026)
Sheela Foam categorises its consolidated turnover across home comfort products, technical B2B foam, and international subsidiary operations.
- Sleepwell Brand Share – 42.5% of Total Operating Revenue
- Kurl-on Brand Share – 24.8% of Total Operating Revenue
- Technical & Industrial PU Foam Share – 18.2% of Total Operating Revenue
- Joyce Foam Australia & International Share – 14.5% of Total Operating Revenue
- Total Consolidated Revenue from Operations (FY2026) – Rs 3,485.40 crore (+18.5% YoY)
Sleepwell and newly integrated Kurl-on drive core consumer mattress sales across urban and semi-urban markets. Technical foam dispatches supply automotive seating and industrial acoustic applications.
Segment & Channel Revenue Mix of Sheela Foam (Q1 FY2027)
Sheela Foam balances its dispatches across B2C retail mattress channels, B2B industrial accounts, and international operations.
- B2C Retail Comfort Products Share – 67.3% of Total Operating Revenue
- B2B Technical Foam & Automotive Share – 18.2% of Total Operating Revenue
- Overseas International Business Share – 14.5% of Total Operating Revenue
- Total First-Quarter Consolidated Revenue (Q1 FY2027) – Rs 895.20 crore (+14.2% YoY)
Retail mattress sales generate over two-thirds of operational revenue through exclusive store networks and digital channels. B2B foam supplies tier-1 automotive suppliers and furniture original equipment manufacturers.
Retail Distribution Network & Store Scale of Sheela Foam (Q1 FY2027)
Sheela Foam manages a multi-tier retail architecture combining exclusive brand outlets, multi-brand dealers, and digital platforms.
- Total Multi-Brand Dealer Outlets Base – 12,500+ retail touchpoints across India
- Exclusive Brand Outlets (EBOs) Base – 1,850+ exclusive stores (Sleepwell World & Kurl-on Express)
- Sleepwell Exclusive Stores Count – 1,150+ stores
- Kurl-on Exclusive Stores Count – 700+ stores
- E-Commerce & Digital Commerce Share – 8.5% of Domestic Retail Revenue
Managing 12,500+ dealer outlets ensures deep market penetration across Tier-1 to Tier-4 commercial centers. Synergies from combining Sleepwell and Kurl-on store footprints expand regional retail coverage.
Manufacturing Infrastructure & Plant Scale of Sheela Foam (FY2026)
Sheela Foam operates continuous variable pressure foaming (VPF) plants and mattress manufacturing facilities across India, Australia, and Spain.
- Total Operating Manufacturing Facilities Base – 19 operational plants
- Domestic Indian Plants Base – 13 manufacturing facilities
- Overseas Australian Plants Base (Joyce Foam) – 5 manufacturing facilities
- European Plant Location (Interfoam) – 1 manufacturing facility in Spain
- Total Installed Flexible PU Foam Capacity Base – 135,000 Metric Tonnes Per Annum (MTPA)
Operating 13 domestic manufacturing plants minimizes logistics expenses and enables localized mattress dispatches. Overseas plants in Australia and Spain deliver high-value technical foam to regional industrial clients.
Kurl-on & Furlenco Acquisition Synergies of Sheela Foam (FY2026)
Sheela Foam executed strategic capital deployments to acquire Kurlon Enterprise and invest in furniture platform Furlenco.
- Kurlon Enterprise Acquisition Stake – 94.66% equity stake acquired for Rs 2,150.00 crore
- House of Kieraya (Furlenco) Equity Investment – 35.0% equity stake acquired for Rs 300.00 crore
- Combined Domestic Mattress Market Share – ~28.0% organized market share post-acquisition
- Annual Cost Synergy Realisations Target – Rs 100–120 crore across logistics, raw material sourcing, and media spending
Acquiring Kurl-on creates a dominant player in the organized Indian mattress industry with a combined 28% market share. Investing in Furlenco expands presence in online furniture rentals and digital lifestyle retail.
Latest Quarterly Financial Performance of Sheela Foam (Q1 FY2027)
Sheela Foam recorded top-line turnover expansion and operating profit growth during the first quarter of FY2027.
- Consolidated Revenue from Operations – Rs 895.20 crore (+14.2% YoY)
- Consolidated Operating EBITDA – Rs 102.40 crore (+18.5% YoY)
- Operating EBITDA Margin – 11.44% (+42 bps YoY)
- Consolidated Net Profit After Tax (PAT) – Rs 48.50 crore (+22.8% YoY)
- Raw Material Cost to Revenue Ratio – 54.2% (-115 bps YoY)
First-quarter operating revenue rose 14.2% year-on-year to Rs 895.20 crore, driven by Kurl-on store integration and Sleepwell volume growth. Net Profit After Tax reached Rs 48.50 crore, while operating EBITDA margins expanded to 11.44%.
Consolidated Annual Financial Performance of Sheela Foam (FY2026)
Sheela Foam delivered full-year turnover expansion and operating profit growth for full financial year FY2026.
- Full Year Consolidated Revenue from Operations – Rs 3,485.40 crore (+18.5% YoY)
- Full Year Consolidated Operating EBITDA – Rs 392.50 crore (+21.2% YoY)
- Full Year Operating EBITDA Margin – 11.26% (+25 bps YoY)
- Consolidated Net Profit After Tax (PAT) – Rs 185.40 crore (+24.5% YoY)
- Return on Capital Employed (ROCE) – 14.2%
Full-year operating turnover crossed Rs 3,480 crore in FY2026, as consolidated Net Profit After Tax expanded 24.5% to Rs 185.40 crore. Performance was driven by Kurl-on consolidation, raw material price moderation, and operational efficiencies.
Balance Sheet Structure & Financial Health Ratios of Sheela Foam (Q1 FY2027)
Sheela Foam operates a capital structure supported by equity retention and managed working capital credit lines post-acquisition.
- Net Debt to Equity Ratio – 0.38x
- Total Financial Debt Base – Rs 850.00 crore
- Total Cash, Bank Balances & Liquid Investments – Rs 280.00 crore
- Total Consolidated Net Worth Base – Rs 2,250.00 crore
- Working Capital Conversion Cycle – 42 days
Consolidated net worth stood at Rs 2,250.00 crore as of June 30, 2026, with net debt to equity holding at a manageable 0.38x. Cash reserves of Rs 280 crore support ongoing plant integration and working capital requirements.
Capital Expenditure & Capacity Expansion Pipeline of Sheela Foam (FY2027–FY2028)
Sheela Foam executes capital allocation outlays to establish greenfield foaming units, automate mattress assembly, and consolidate logistics.
- Planned Multi-Year Capex Outlay Guidance – Rs 150–180 crore per annum over FY2027–FY2028
- Jabalpur Greenfield Plant Target – Setting up a modern bedding manufacturing facility in Madhya Pradesh
- Kurl-on Plant Modernization Outlay – Upgrading machinery across acquired Kurl-on manufacturing sites
- IT & Supply Chain Integration Outlay – Implementing unified SAP ERP across Sleepwell and Kurl-on
- Funding Strategy – 100% funded through internal operational cash accruals and liquid surplus reserves
Annual capital expenditure is budgeted at Rs 150–180 crore over FY2027–FY2028 to modernize Kurl-on plants and establish the Jabalpur facility. Internal operational cash flows fund all planned manufacturing updates.
Strategic Outlook & Management Commentary of Sheela Foam (Q1 FY2027 Concall)
Management guidance outlines strategic priorities centered on Kurl-on synergy realization, distribution expansion, and margin enhancement.
- Management targets achieving a 15%–18% annual top-line revenue CAGR over the FY2027–FY2029 period.
- Consolidated operating EBITDA margins are guided to expand toward the 13.0%–14.0% corridor via procurement synergies.
- Annual cost synergies from Kurl-on integration are projected to reach Rs 100+ crore by end-FY2028.
- Exclusive brand outlets network is targeted to cross 2,500+ operational stores across India by FY2028.
- Capital allocation strategy will prioritize keeping Net Debt to Equity under 0.40x while funding brownfield expansions.
Management anticipates rising urban housing completions and demand for ergonomic mattresses to support sales volumes. Operational focus centers on capturing Kurl-on cost synergies, expanding retail store footprints, and preserving balance sheet health.
Want to filter out stocks based on your own investment criteria? You can use the Stock Screener on Finology Ticker to evaluate stocks based on customised valuation and profitability parameters.
Sources & References
- Sheela Foam Q1 FY2027 Consolidated Financial Disclosures & Stock Exchange Filings
- Sheela Foam Investor Presentation & Earnings Call Transcripts
- Sheela Foam Corporate Announcements & Regulatory Filings
- BSE Limited & National Stock Exchange of India (NSE) Corporate Filings for Sheela Foam
- Ticker Finology Sheela Foam Page
Disclaimer
The information presented above on Sheela Foam has been compiled from the company's Annual Reports, Investor Presentations, Earnings Call (Concall) Transcripts, official regulatory filings and the financial data available on Finology Ticker. Certain figures, classifications or comparisons may vary due to differences in accounting policies, reporting methodologies or subsequent restatements by the company. This content is intended solely for informational purposes and should not be considered as investment advice. Investors are advised to refer to the latest company filings and the updated financial data, ratios and disclosures available on this Finology Ticker Sheela Foam page before making any investment decision. Investment in securities market are subject to market risks. Read all the related documents carefully before investing.