Sheela Foam Ltd. shares surged as much as 19% to ₹646 on May 15, 2026, touching an intraday high of ₹652 - its upper price band - in one of the strongest single-session moves in the stock's recent history. The stock opened at ₹625 against a previous close of ₹543.35 and quickly pushed toward the upper circuit, with the day's range spanning ₹625 to ₹652. Average daily volume for the stock runs at 1,00,910 shares, making the buying interest at open particularly pronounced. The stock is currently trading at ₹608 per share, representing an 11.89% increase from its previous closing price of ₹543.35, with the company maintaining a P/E ratio of 43. The stock has been gaining for two consecutive days, delivering a cumulative return of 16.96%, which outperforms the Furniture, Home Furnishing sector's 3.71% gain and the Sensex's modest 0.43% rise on the same day. The stock is trading above all key moving averages — the 5-day, 20-day, 50-day, 100-day, and 200-day averages - signalling a strong bullish trend and confirming that the stock was already in an uptrend before the circuit event.
For the March quarter, Sheela Foam reported consolidated profit after tax of ₹91.28 crore, representing a near-sevenfold jump of 597.85% from ₹13.08 crore in the corresponding period last year. As reported by Angel One, revenue from operations rose 23.59% year-on-year to ₹1,050.06 crore from ₹849.61 crore, while core EBITDA grew 90% to ₹121 crore from ₹64 crore in Q4FY25. EBITDA margin expanded 400 basis points to 11.5% from 7.5% a year ago, driven by higher volumes, improved gross margins, and operating leverage across the enlarged manufacturing and distribution base. Earnings per share (EPS) reached ₹8.36, highlighting the company's ability to convert revenue growth into shareholder value.
The company achieved its highest-ever operating profit margin of 11.11%, the highest recorded in recent quarters, as reported by Angel One. Operating profit before depreciation, interest, and taxes (PBDIT) reached an all-time high of ₹116.62 crore, underscoring efficient cost management and operational leverage. This margin expansion indicates that Sheela Foam is not only growing its sales but also enhancing profitability through better control over expenses and improved product mix. The record PBDIT indicates the company is successfully leveraging economies of scale and improving its fixed cost absorption, boding well for sustaining profitability even if revenue growth moderates in future quarters.
The company demonstrated strong volume growth across its key product categories, with mattress volumes growing 13% in Q4FY26 and 12% for the full year, while foam volumes were even stronger, growing 34% in Q4 and 18% for the full year. Both the Sleepwell and Kurlon brands showed healthy momentum, with Kurlon growing volumes by 14% for FY26. The e-commerce channel emerged as a key growth driver, with sales on third-party platforms growing 39% and sales on the company's own website surging 136% year-on-year. The company's budget range U20 showed extraordinary traction, with volumes growing 65% and value growing 111% in FY26.
Chairman and Managing Director Rahul Gautam described FY26 as the year of realising the benefits of the Kurlon acquisition, noting that both Sleepwell and Kurlon brands delivered strong growth alongside commendable momentum in foam. He said the company has achieved its highest-ever turnover and EBITDA in its history, reflecting the strength of the integrated platform and focused execution toward profitable growth. The Kurlon integration has been the central strategic question for Sheela Foam since it acquired a 64% stake in rival Kurlon Enterprise Limited in March 2024, combining India's two most recognised mattress brands under one operating platform. The Q4FY26 numbers provide the first full-year audited evidence that the integration is delivering on its financial promises - volume growth across both brands, margin expansion, and a return to strong profitability after a prolonged integration-related drag on earnings.
The company significantly expanded its distribution network, adding 600 net new showrooms during the year and the U20 range now reaches over 8,400 dealers across more than 5,500 towns in 24+ states. Adding to investor excitement, Sheela Foam announced a final dividend of ₹1 per share, representing a payout of 20% for FY26, to be paid within 30 days of shareholder approval. At a trailing P/E of 77.66x following the day's surge, the stock's valuation now prices in continued execution on the Kurlon platform. With a market capitalisation of approximately ₹5,963 crore, Sheela Foam is classified as a small-cap stock, with the liquidity profile being moderate - the stock liquid enough to support a trade size of around ₹0.17 crore based on 2% of the 5-day average traded value. An investor and analyst conference call is scheduled for 4:00 PM IST on May 15, where management commentary on FY27 volume outlook, margin sustainability, and the broader consumer environment will be watched closely.
