Sheela Foam's Growth Blueprint: Sales, Margins, Markets
- FY26 E-commerce growth: Targeting 50% value growth.
- FY26 Tarang & Aaram revenue: Expected to exceed Rs. 100 crore.
- FY26 New showrooms: Plan to open approximately 1,000.
- FY27 Furlenco revenue target: Rs. 500-550 crore.
- Overall Topline Growth: Aiming for 15% in the next three years.
- Overall EBITDA margin target: 14-15% within three years.
- Debt reduction target: Rs. 300-350 crore reduction by FY26.
Sheela Foam Limited’s Q1 FY26 earnings call revealed a robust performance, setting an ambitious trajectory for future growth. The company is actively leveraging the successful Kurlon integration to fuel market expansion, enhance profitability, and strengthen its financial position, outlining clear targets for sales, margins, and debt reduction in the coming years.
Expanding Market Reach and Digital Growth
Sheela Foam is driving aggressive market expansion, planning to open 'about 1,000 new showrooms' in FY26, primarily for Kurlon in North and West India. The value-driven 'Tarang' and 'Aaram' mattresses are expected to achieve 'Rs. 100 crores plus' in revenue this fiscal year, showing a 60% year-on-year volume growth. E-commerce is also a key focus, with a target of '50% value growth' for FY26. Initial success in Dubai and GCC countries signals further international scaling.
Profitability and Financial Health
Sheela Foam anticipates 'Rs. 60 crores' in additional Kurlon integration savings by FY26. Combined with projected 15% topline growth, this aims for an EBITDA margin of '14% to 15%' within three years, driven by operating leverage. The company targets reducing net debt by 'Rs. 300-350 crores' by FY26, through PAT generation and asset monetization. Furlenco, a strategic investment, forecasts 'Rs. 370 crores' revenue for FY26, rising to 'Rs. 500-550 crores' by FY27.
Sheela Foam's Q1 FY26 call charts a clear roadmap for sustained growth. Strategic expansion with 1,000 new showrooms and successful new products, combined with Kurlon integration savings, will drive higher sales and EBITDA margins. Debt reduction and Furlenco's growth further solidify its position. The company is poised for a robust, value-driven future, rooted in efficiency and market leadership.