Sheela Foam sees strong growth, Kurlon integration boosts profitability

Sheela Foam Limited (SFL) reports a robust financial performance, with consolidated revenues reaching INR 3,439 Cr in FY25, up from INR 2,053 Cr in FY20. Despite a temporary dip in EBITDA and PAT margins due to the Kurlon integration, the company achieved an EBITDA of INR 286 Cr (8.30% margin) and PAT of INR 97 Cr (2.80% margin) in FY25. The successful integration of Kurlon is projected to boost core EBITDA to 11.1% by Q1FY26, reflecting annual run-rate savings of INR 190 Cr.

The company's strategic focus on the mattress business is evident in its volume and value growth. Mattress volumes are projected to reach 3,308 ('000) units by 2025, with a 12% CAGR, while foam business volumes are expected to reach 1,181 (Tn) with a 7% CAGR. Value-wise, the mattress segment is forecasted to hit INR 1,377 Cr by 2025 (18% CAGR), and the foam business is anticipated to reach INR 45,988 Cr (7% CAGR), driven by premiumization.

SFL maintains a strong market presence, with 19 manufacturing facilities globally (12 in India, 1 in Spain, 6 in Australia). It commands an approximate 30% market share in India and 40% in Australia. The company also highlights its foray into new-age businesses like Furlenco (furniture rental) and Staqo (IT platform & services), demonstrating a diversified growth strategy.