Synopsis: A mattress maker’s stock locked at the upper circuit after a sharp earnings turnaround, strong volume growth, and a major dividend surprise.
A well-known Indian mattress and foam company saw its stock surge on Thursday, locking in at the upper circuit limit. The move came after the company reported a strong set of numbers for the January-March quarter and the full financial year 2025-26, delighting investors who had been waiting for clear signs of recovery.
With a market cap of Rs. 6,603 Crore, the shares of Sheela Foam Ltd. are trading at a price of Rs. 608 per share i.e. 11.89% up from its previous closing price of Rs. 543.35. It currently trades at P/E of 43.
Sheela Foam, the company behind popular mattress brands Sleepwell and Kurlon, saw its stock hit the 20% upper circuit at ₹652 on May 15, 2026, after reporting a strong set of results for Q4FY26 and the full year FY26. Let’s break down what happened and why investors got so excited.
What Are the Numbers?
For the full year FY26, Sheela Foam’s consolidated revenue grew 11% to ₹3,821 crore. But the real story was in profitability. The company’s core EBITDA – a measure of operating profit – jumped 46% to ₹414 crore, with margins improving sharply to 10.8% from 8.2% the previous year. Net profit for the full year came in at ₹161 crore, up 78% from ₹90 crore in FY25.
The quarterly numbers were even more exciting. In Q4FY26, consolidated revenue grew 24% year-on-year to ₹1,050 crore. Quarterly net profit surged to ₹92 crore, i.e. a jump of over 600% from ₹13 crore reported in the same quarter last year. That kind of jump is rare and tends to catch the market’s attention instantly.
What Drove the Growth?
The growth was broad-based. Mattress volumes grew 13% in Q4FY26 and 12% for the full year. 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 stood out as a key growth driver. Sales on third-party platforms grew 39%, while sales on the company’s own website surged 136% year-on-year. The company’s budget range U20 also showed extraordinary traction, with volumes growing 65% and value growing 111% in FY26.
On the distribution side, the company added 600 net new showrooms during the year. The U20 range now reaches over 8,400 dealers across more than 5,500 towns in 24+ states.
Dividend announcement
Adding to the excitement, the company announced a final dividend of 20%, which means ₹1 per share. For income-seeking investors, this was an added bonus on top of the strong earnings.
About the Company
Sheela Foam Limited is India’s largest manufacturer of polyurethane foam and holds around 30% market share in the branded mattress segment. The company operates brands including Sleepwell and Kurlon in India, and Joyce and Interplasp internationally, along with the Furlenco furniture rental business and Staqo IT services.
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