India · Delayed Price · Currency is INR Sheela Foam Earnings Call Transcripts
Fiscal Year 2026
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Kurl-on merger integration drove margin expansion and operational turnaround, with consolidated revenue up 7% and core EBITDA margin at 10.9% for Q3. E-commerce and U2O segments saw strong growth, while debt reduction and asset monetization improved financial flexibility.
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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.
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Q1 FY 2026 saw robust growth with 10% mattress volume increase, improved margins, and strong expansion in retail and e-commerce. Kurlon integration delivered significant cost savings, and Furlenco continued its high growth trajectory. Debt reduction and further margin improvement are expected.
Fiscal Year 2025
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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.
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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.
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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.
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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.