Sheela Foam sees strong Q2 growth, driven by mattress sales and Kurlon integration

Sheela Foam Limited announced robust growth for Q2 and H1 FY '26, with the mattress business growing by 13% in Q2 and 11% in H1. Foam business volumes increased by 9% and 8% respectively. Kurlon, now integrated, grew by 13% in Q2 and 10% in H1. The company achieved core EBITDA margins above 10% on a consolidated basis for both quarters, with a year-on-year EBITDA growth of 31% to INR 177 crores. PAT for H1 FY '26 was INR 17 crores, normalized to INR 35 crores excluding one-off impacts.

The company is actively expanding its network, adding 420 new showrooms in H1 FY '26, with a target of 800 by year-end. This expansion aims to boost its B2C mattress business, which currently accounts for 55% of total business. Sheela Foam anticipates higher growth rates for its India business, contributing 75% to its total turnover. Furlenco, a key investment, added over 34,000 net customers in H1 FY '26 and is expected to reach INR 500 crores turnover in the coming year.

Strategic initiatives include premiumization efforts at showrooms and increased focus on the brand.com e-commerce channel to improve margins and average selling prices (ASPs). The company aims to achieve a 30% market share in the organized e-commerce mattress market within a few years. Sheela Foam expects raw material prices to start increasing in the next two to three months, potentially impacting overseas operations positively.