India · Delayed Price · Currency is INR Sheela Foam Earnings Call Transcripts
Fiscal Year 2026
-
Record revenue and EBITDA growth in FY 2026 driven by Kurl-On integration, strong brand performance, and robust supply chain management. Margin expansion, debt reduction, and first-ever dividend highlight improved financial health, with continued focus on growth and operational efficiency.
-
Kurlon merger integration drove margin recovery and operational synergies, with consolidated revenue up 7% and core EBITDA margin at 10.9% in Q3. Mattress and foam segments saw strong volume growth, while e-commerce and U2O channels expanded rapidly. Net debt reduced to INR 600-650 crore, and management targets 15% revenue growth and EBITDA margin for India business by FY 2028.
-
Q2 and H1 FY 2026 delivered strong growth, led by mattress and e-commerce segments, with EBITDA margins above 10% and synergy benefits from the Kurlon merger. India business outpaced overseas, store expansion accelerated, and debt reduction remains on track, with net cash targeted by FY 2028.
-
Q1 FY 2026 saw strong volume and margin growth, driven by Kurlon integration, rural and e-commerce expansion, and cost optimization. Furlenco delivered robust subscriber and profit growth, with further capital infusion planned. Debt reduction and margin improvement remain key priorities.
Fiscal Year 2025
-
Standalone and consolidated revenues grew, with profitability impacted by acquisition-related costs and raw material deflation. Cost synergies and network expansion are underway, with a focus on deleveraging and achieving double-digit EBITDA margins in the next 2-3 years.
-
Strong India-focused growth with 24% QoQ mattress volume increase and 54% YOY standalone revenue rise, despite margin pressures from e-commerce and raw material disruptions. Integration of Kurlon and rural/online initiatives drive future growth, with EBITDA margin targets of 14%-15% by 2027.
-
Strong YOY revenue and volume growth driven by mattress segment and Kurlon integration, though net profit was impacted by higher interest and depreciation costs. Cost synergies, increased branded business focus, and Furlenco's turnaround support a positive medium-term outlook.
-
Q1 FY25 saw 26% revenue growth year-over-year, but EBITDA margins declined due to integration disruptions and higher expenses. Management expects double-digit growth and margin improvement as synergies are realized and integration nears completion.