Earnings Release
Sheela Foam Q1 FY27 Results: Revenue Crosses ₹1,000 Cr; PAT Up 9.5x YoY
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Sheela Foam Limited reported Q1 FY27 consolidated revenue of ₹1,032 crore, up 26% YoY, marking the first time the group achieved ₹1,000+ crore revenue in a Q1. EBITDA grew 45% YoY to ₹109 crore, with margin expanding 139 bps to 10.6%. PAT surged 9.5x YoY to ₹62 crore, from ₹7 crore in Q1 FY26. Cash EPS stood at ₹10.3. Mattress volumes grew 6% and value 15%, while foam volumes grew 4% and value 26%.
PRICE-SENSITIVE TRIGGER
Event: Q1 FY27 Financial Results Announcement
Type: Earnings Release
Impact: Positive
Immediate Effect: First-ever Q1 with ₹1,000+ crore revenue; strong PAT growth; margin expansion; positive sentiment for the stock.
Metrics:
Key Financial Metrics:
- Revenue: ₹1,032 crore (+26% YoY) – first Q1 to cross ₹1,000 crore
- EBITDA: ₹109 crore (+45% YoY)
- EBITDA Margin: 10.6% (+139 bps YoY)
- PAT: ₹62 crore (up from ₹7 crore in Q1 FY26; 9.5x YoY growth)
- Cash EPS: ₹10.3
Segment Performance:
- Mattress Volumes: +6% YoY; Mattress Value: +15% YoY
- Foam Volumes: +4% YoY; Foam Value: +26% YoY
- E-commerce (brand.com): +69% YoY
- E-commerce (marketplace): +19% YoY
Highlight:
- First-ever Q1 with ₹1,000+ crore revenue; PAT up 9.5x YoY; EBITDA up 45% YoY; margin expansion of 139 bps.
What Happened ?
Sheela Foam Limited announced its Q1 FY27 financial results, reporting consolidated revenue of ₹1,032 crore, up 26% YoY – marking the first time the group achieved ₹1,000+ crore revenue in a Q1. EBITDA grew 45% YoY to ₹109 crore, with margin expanding 139 bps to 10.6%. PAT surged to ₹62 crore from ₹7 crore in Q1 FY26, representing 9.5x YoY growth. Both mattress and foam businesses sustained healthy momentum, with e-commerce initiatives gaining scale.
key details
- Revenue up 26% YoY to ₹1,032 crore – first Q1 to cross ₹1,000 crore.
- EBITDA up 45% YoY to ₹109 crore; margin expanded 139 bps to 10.6%.
- PAT up 9.5x YoY to ₹62 crore.
- Cash EPS at ₹10.3.
- Mattress volumes up 6% YoY; value up 15% YoY.
- Foam volumes up 4% YoY; value up 26% YoY.
- E-commerce (brand.com) up 69% YoY.
- E-commerce (marketplace) up 19% YoY.
Note:
- The company’s strong performance was driven by higher value growth in both mattress and foam segments, supported by value-accretive growth, operating leverage, and expanding market reach through e-commerce and U20 initiatives.
Risk Analysis
Summary:
- While the company delivered strong Q1 performance, risks include raw material price volatility, competition, and consumer demand trends.
Key Risks:
- Raw material price volatility (polyurethane foam inputs).
- Competition from other foam and mattress manufacturers.
- Consumer demand trends affecting discretionary spending.
- E-commerce channel dependence and platform dynamics.
- Integration of Kurlon and other acquired businesses.
- Currency fluctuations impacting international operations.
Worst Case:
Sustained raw material inflation or demand slowdown could impact margin trajectory and growth.
Risk Level: Medium
Company Commentary
Management highlighted that:
- Mr. Rahul Gautam, Chairman & Managing Director, Sheela Foam Limited: “We have started FY27 on a strong note, with both our mattress and foam businesses sustaining the healthy momentum built through FY26.”
- “Our e-commerce and U20 initiatives continue to gain scale, further widening our market reach.”
- “Looking ahead, we are well positioned to carry this momentum forward. Backed by our integrated operations and expanding reach, we remain committed to delivering sustained growth with adequate, consistent profitability, while continuing to build resilience and long-term value across the business.”
Official Exchange Filing: Sheela Foam Limited
