Sheela Foam achieved a historic milestone in Q1 FY27, with consolidated revenue crossing the ₹1,000 crore mark for the first time in a Q1 quarter. The company reported ₹1,031.9 crore in revenue, representing a 25.6% year-on-year growth from the previous year. This performance marks a significant achievement as the company's quarterly revenue surpassed the ₹1,000 crore threshold for the first time, demonstrating strong operational scale and market demand. The company also crossed another important operational milestone with EBITDA topping ₹100 crore for the first time in a first quarter, reaching ₹108.9 crore with a 44.8% increase from ₹75.2 crore year-on-year.
Sheela Foam delivered exceptional financial results with consolidated net profit reaching ₹61.4 crore, representing a remarkable 839.4% increase from the ₹6.5 crore recorded in Q1 FY26. The company's EBITDA grew 44.8% year-on-year to ₹108.9 crore, while EBITDA margin expanded by 140 basis points to 10.6% from 9.2% in the year-ago quarter. The strong performance was driven by robust growth across both key business segments, with cash EPS standing at ₹10.3 for the quarter. The results indicate that the company delivered growth not only through higher sales but also through better operating efficiency, with EBITDA growing faster than revenue and margins improving significantly.
The mattress segment demonstrated solid performance with 6% volume growth and 15% value growth during the quarter, as reported by CNBC TV18. The foam business also contributed significantly with 4% volume growth and 26% value growth, indicating that realisations improved significantly during the quarter. E-commerce initiatives showed exceptional growth with sales through own brand website surging 69% year-on-year and sales through e-commerce marketplaces increasing 19% year-on-year, indicating strong digital channel momentum and expanding market reach through U2O initiatives.
Rahul Gautam, Chairman & Managing Director, expressed confidence in the company's momentum, stating that Sheela Foam has started FY27 on a strong note with both mattress and foam businesses sustaining healthy momentum built through FY26. According to the official exchange filing, Gautam highlighted that the company's e-commerce initiatives and U2O (Universal to Omni) strategy continue to scale up, while the company remains focused on delivering consistent growth, improving profitability and creating long-term shareholder value. The management remains committed to maintaining the margin gains achieved during the quarter while building resilience and long-term value across the business.
Despite the strong quarterly results, Sheela Foam's stock declined 2.48% to close at ₹771.45 on the BSE, as reported by Business Standard. The company operates as a leading producer of polyurethane (PU) foam with operations spanning Asia, Australia, and Europe. The June-quarter performance suggests that Sheela Foam continues to benefit from healthy demand across its core businesses while improving operating efficiency. Going forward, investors are likely to watch whether the company can sustain this momentum, particularly in its higher-margin mattress segment and fast-growing digital channels, while maintaining the margin gains achieved during the quarter.
