Q2 2026 Sheela Foam Ltd Earnings Call Transcript
Key Points
- Sheela Foam Ltd (BOM:540203) reported robust growth in Q2 FY '26, with core EBITDA margins above 10% on a consolidated basis.
- The merger with Kurlon has opened up new growth opportunities, with Kurlon now growing faster than before, contributing significantly to the mattress business.
- The company expanded its network by 420 net new showrooms in H1 FY '26, with plans to reach 800 by year-end, enhancing its market presence.
- Sheela Foam Ltd's e-commerce business registered a significant volume growth of 73% year-on-year, indicating strong online sales momentum.
- The company's subsidiaries in Australia and Spain are returning to historical profitability, nearing double-digit EBITDA levels, despite low raw material prices.
- Despite volume and value growth in the mattress business, realizations have stayed flat, posing a challenge for future profitability improvements.
- The company faces competitive intensity as rivals raise funds through equity markets, potentially impacting market share.
- Debt levels remain significant, with a total net debt of around INR800 crores, and the company aims to be debt-free in two to three years.
- Raw material prices remain low, affecting top-line growth, and are expected to persist for a few more months.
- The synergy benefits from the Kurlon merger, while contributing to profitability, have not fully translated into visible margin expansion in the financial results.
Ladies and gentlemen, good day and welcome to Sheela Foam Limited Q2 FY '26 earnings conference call hosted by InCred Equities Capital. (Operator Instructions) Please note that this conference is being recorded.
I now hand the conference over to Mr. Rohan Kalle. Thank you and over to you, sir.
Thanks, Trisha. On behalf of InCred Equities, I thank you all for joining the 2Q FY '26 earnings call of Sheela Foam Limited. From the management team, we have with us Mr. Rahul Gautam, Executive Chairman and Managing Director; Mr. Rakesh Chahar, Deputy Managing Director; Mr. Amit Kumar Gupta, Group CFO. Before I hand over the call to management, I would just like to draw your attention to the safe harbor statement in the investor presentation.
Over to you, Rahul, sir, for opening remarks. Following which, we'll open the floor for Q&A.
Thank you, Rohan. Good afternoon, ladies and
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
