Synopsis: Sheela Foam closed FY26 with consolidated revenue up 11 percent to Rs. 3,821 crore, EBITDA up 46 percent to Rs. 414 crore, and PAT up 78 percent to Rs. 161 crore, and has now laid out a roadmap to nearly double revenue to Rs. 5,000 crore by FY30, a target built on premiumisation, distribution expansion, acquisitions, and exports rather than pure volume growth.
A stock that spent much of the past year under pressure has quietly turned into one of the sharper recoveries on the boards, climbing back toward its 52-week highs as the underlying business delivers genuinely improving numbers rather than sentiment alone. What’s driving that recovery, and whether it can be sustained through FY30, is worth unpacking with the actual figures rather than the broad strokes.
Sheela Foam closed on Friday at Rs.761.10,down 0.06 percent from its previous close of Rs.761.55 with a market capitalization at Rs.8,345.86 crore, and a P/E ratio of 59.37.
Strong FY26 Financial Performance, By the Numbers
Consolidated revenue rose 11 percent year-on-year to Rs. 3,821 crore, from Rs. 3,439 crore in FY25. Core EBITDA grew a much sharper 46 percent to Rs. 414 crore from Rs. 283 crore, with the EBITDA margin expanding 261 basis points to 10.8 percent from 8.2 percent. Consolidated PAT climbed 78 percent to Rs. 161 crore from Rs. 90 crore, with PAT margin improving to 4.2 percent from 2.6 percent.
The fourth quarter alone showed this acceleration compounding further: consolidated revenue grew 24 percent year-on-year to Rs. 1,050 crore, Core EBITDA jumped 90 percent to Rs. 121 crore with margin expanding 400 basis points to 11.5 percent, and PAT surged sevenfold to Rs. 92 crore from just Rs. 13 crore a year earlier. A 46 percent full-year EBITDA growth rate against 11 percent revenue growth is the clearest single data point here: profitability is compounding at roughly four times the pace of the top line, driven by margin expansion rather than volume alone.
Premium Products Continue to Drive Growth, in Volume and Value Terms
Within the standalone India business, mattress volumes grew 12 percent for the year to 3,692 thousand units, with value growing a slightly slower 10 percent to Rs. 1,497 crore. Foam volumes grew faster still, up 18 percent to 54,088 tonnes, with value up 14 percent to Rs. 1,352 crore, technical foam volume rose 19 percent and comfort foam volume rose 21 percent for the year.
The gap between volume growth and value growth in mattresses specifically, 12 percent versus 10 percent, is worth flagging since it suggests some price realisation lag or mix dilution within that segment even as overall profitability improved elsewhere.
The company’s distribution network now spans over 1,000 exclusive brand outlets alongside more than 10,000 dealers, infrastructure management is using to push its premium mattress, furniture, and sleep solutions portfolio. E-commerce growth has been the standout channel by a wide margin: sales on the company’s own brand.com platform surged 136 percent year-on-year, while third-party platform sales grew 39 percent, both dramatically outpacing the 10 to 14 percent growth rates seen in the core offline mattress and foam segments.
Capacity Expansion to Support Future Demand
Behind the premiumisation numbers sits continued capacity investment across India and overseas, with management framing these additions around improving operating efficiency rather than pure volume chasing.
The international operations offer a useful proof point: Joyce, the company’s Australian subsidiary, grew revenue to Rs. 422 crore from Rs. 396 crore, with EBITDA margin expanding to 10.0 percent from 6.3 percent, a jump of nearly 400 basis points.
Interplasp in Spain grew revenue to Rs. 391 crore from Rs. 341 crore, with an EBITDA margin improving to 10.4 percent from 8.4 percent. Both overseas units, historically drags on group profitability, posted margin gains of similar magnitude to the domestic business in the same year.
Revenue Guidance
Management’s roadmap targets scaling revenue from Rs. 3,821 crore in FY26 to Rs. 5,000 crore by FY30, implying a compound annual growth rate of roughly 7 percent, considerably more conservative than the 11 percent revenue growth and 46 percent EBITDA growth already delivered in FY26.
That gap between the stated four-year target and the current year’s actual growth rate suggests management is building in a meaningful cushion for macro uncertainty, raw material volatility, or slower-than-hoped acquisition contributions, rather than simply extrapolating FY26’s pace forward.
Levers cited include continued premiumisation, distribution expansion, acquisitions, and exports, with acquisition-driven growth carrying more execution uncertainty than the organic components of the plan.
Large Addressable Market Provides Long Runway
India’s mattress industry remains significantly underpenetrated, with organised players continuing to take share from the unorganised segment, a dynamic reflected in the double-digit volume growth still available to a company of this scale.
Rising disposable incomes, urbanisation, and natural replacement cycles support the category independent of company-specific execution, while the company’s existing Australian and Spanish operations, already generating a combined Rs. 813 crore in FY26 revenue, give it a structural head start on export-led growth relative to a purely domestic competitor starting from scratch.
What Retail Investors Should Weigh
The FY26 numbers, 11 percent revenue growth translating into 46 percent EBITDA growth and 78 percent PAT growth, describe a business genuinely improving on margin and mix, not simply riding favourable sector tailwinds.
The FY30 target’s implied 7 percent revenue CAGR looks conservative next to FY26’s actual delivery, which cuts both ways: it may prove easily beatable, or it may reflect management’s own caution about repeating a 46 percent EBITDA growth year consistently through FY30.
With the stock already trading near its 52-week high of Rs. 769.90 and a P/E as high as 61 times on some estimates, a meaningful part of this improving story already appears priced in, making continued quarter-on-quarter margin delivery, rather than the FY30 headline number itself, the more immediate thing to track.
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