Q3 2026 Sheela Foam Ltd Earnings Call Transcript
Key Points
- Sheela Foam Ltd (BOM:540203) reported a consolidated core EBITDA margin of 10% for the last nine months, aligning with pre-acquisition levels, indicating successful integration of Kurlon.
- The company achieved a 7% top-line growth, with mattress volumes growing by 11% year-on-year for the nine-month period.
- Sheela Foam Ltd (BOM:540203) added approximately 600 net new showrooms over the last nine months, with plans to reach 700 by the end of the financial year, enhancing retail presence.
- The e-commerce business grew by 53% year-on-year, reaching net revenues of around INR180 crores, driven by a focused strategy and portfolio expansion.
- International operations in Australia and Spain showed marked improvement, with EBITDA margins around 12% in Q3, reflecting disciplined execution and cost control.
- Despite the growth, the company faces challenges with raw material price fluctuations, impacting value growth in the foam segment.
- The competitive intensity in the offline mattress market remains high, with no significant reduction in discounting from competitors.
- There is a disparity between volume and value growth in the foam segment, with value growth lagging due to lower raw material prices.
- The company has not yet implemented price increases in the online segment, potentially affecting margins if raw material costs rise.
- Sheela Foam Ltd (BOM:540203) has reduced its target for new EBOs from 800 to 700, indicating potential challenges in retail expansion.
Good evening ladies and gentlemen. I'm Madhuri, moderator for the conference call. Welcome to the Sheila Foam Limited Q3 FY '26 investors call. (Operator Instructions) Please note this conference is being recorded.
I would now like to hand over the floor to Mr. Gulshan. Thank you and over to you, sir.
Yeah, thank you, ma'am. Good evening and very warm welcome to everyone. On behalf of Sunidhi Securities, I welcome you all to Sheela Foam Limited Q3 FY '26 earning conference call. Today we have with us a management represented by MR. Rahul Gauta, Chairman and Managing Director; Mr. Rakesh Chahar, Deputy Managing Director; and Mr. Amit Kumar Gupta, group CFO. We thank, Sheela Foam for giving us the opportunity to host the call. I would now like to hand over the floor to the management for their opening remark, post which we will open the floor for Q&A.
Thanks and over to you Rahul, sir.
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