Synopsis:- Shares rallied 20% after Q3FY26 performance impressed investors. Mattress volumes grew 11% to 1,151K units, while foam volumes surged 20%. EBITDA margin expanded to 10.9%. Over 9M FY26, margins improved 213 bps to 10.6%, supported by strong operating leverage and benefits from the Kurlon acquisition.
The shares of the consumer durable product manufacturer hit 20 percent upper circuit in today’s trading session after the company posted robust Q3FY26 earnings and sees significant growth across the segment.
With a market capitalization of Rs 6,750.94 crore, the shares of Sheela Foam Ltd were trading at Rs 621.00 per share, increasing around 18.38 percent as compared to the previous closing price of Rs 524.60 apiece.
Q3FY26 Highlights
The shares of Sheela Foam Ltd have seen significant movement after announcing its financial performance in Q3FY26, in which revenue increased by 11 percent on a year-on-year basis from Rs 967 crore in Q3FY25 to Rs 1,074 crore in Q3FY26. However, on a Quarter-on-Quarter basis, revenue increased by 23 percent from Rs 875 crore in Q2FY26 to Rs 1,074 crore in Q3FY26.
Moreover, net profit increased by 211 percent on a yearly basis from Rs 17 crore in Q3FY25 to Rs 53 crore in Q3FY26, meanwhile, on a quarter-on-quarter basis, net profit increased by 430 percent from Rs 10 crore in Q2FY26 to Rs 53 crore in Q3FY26.
In Q3 FY26, the company delivered strong growth across key segments. Mattress volumes rose 11% year-on-year to 1,151K units, with value increasing 7% to Rs 452 crore. Foam volumes grew 20%, led by robust performance in technical and comfort foam. Overall standalone revenue stood at ₹842 crore, up 8% YoY and 26% sequentially, reflecting healthy demand momentum.
Further, in 9M FY26, the company delivered steady performance with mattress volumes up 11% and foam growing 12%, driving 7% revenue growth to Rs 2,771 crore. Core EBITDA surged 34% to Rs 293 crore, lifting margins to 10.6% on better gross margins and operating leverage. PAT stood at Rs 69 crore, lower year-on-year due to last year’s one-time insurance income.
Management Comments
Mr. Rahul Gautam (Chairman & Managing Director) Commenting on the results, he said that the Kurlon acquisition has begun delivering tangible benefits, driving a turnaround at Sheela Foam Limited. The business has entered a phase of double-digit growth, with both the mattress and foam segments recording strong volume expansion.
Profitability and cash generation have continued to improve each quarter, supported by improved performance across all key markets – India, Australia, and Spain. We remain confident in our ability to deliver sustained, profitable growth backed by robust cash generation, thereby creating long-term value for all stakeholders.
Sheela Foam Ltd is one of India’s leading manufacturers of mattresses and foam-based home comfort products. Known for brands like Sleepwell and Kurlon, the company has a strong presence across retail and distribution networks nationwide. It operates in both domestic and international markets, focusing on innovation, quality, and expanding premium offerings.
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