Sleepwell Charts Path for Growth and Strong Margins

Ashwin Thakker

— 2 min read

Key Facts on Outlook:

  • Targeting 15% revenue growth annually for the next three years.
  • Projecting 14-15% EBITDA margins within three years.
  • Expecting Rs. 60 crores in balanced savings from Kurlon integration by FY '26 end.
  • Plans to open 1,000 new showrooms in the current fiscal year.
  • Anticipating 50% value growth in e-commerce for FY '26.
  • Furlenco (associate company) projected to achieve Rs. 370 crores revenue in FY '26, targeting Rs. 500-550 crores by FY '27.
  • Projected debt reduction of Rs. 300-350 crores, targeting Rs. 300-400 crores net debt.

Sheela Foam Limited's Q1 FY '26 earnings call highlighted robust performance and ambitious future plans. The company's forward-looking guidance signals a strong commitment to sustained top-line expansion, enhanced profitability, and deeper market penetration. Through strategic initiatives and successful integration of Kurlon, Sheela Foam is setting the stage for significant value creation.

Expanding Reach and Driving Sales

Sheela Foam is strategically expanding its market footprint, leveraging the Kurlon acquisition for deeper penetration. The company aims to open

about 1,000 new showrooms in the current fiscal year,

with 234 already operationalized in Q1 FY '26. This extensive retail push is complemented by the affordable Tarang and Aaram mattress lines, projected to achieve

revenues of Rs. 100 crores plus

in FY '26. Profitability in this segment is maintained via efficient production. Furthermore, the e-commerce channel is a key growth driver, forecast for

50% value growth

this fiscal year, solidifying the company's multi-channel strategy.

Boosting Margins and Financial Stability

Sheela Foam's Kurlon integration is central to enhanced profitability, anticipating

balanced savings of Rs.60 crores

by FY '26 end. These efficiencies are crucial for achieving the company's target

EBITDA margin of say around 14%, 15%... in three years.

Fixed costs are projected to remain flat in FY '26, with savings offsetting inflationary pressures. Beyond this year, sustained 15% top-line growth is expected to further improve the bottom line. The company also aims to significantly reduce its net debt to Rs. 300-400 crores, through organic profit generation and monetizing non-core assets, reinforcing financial stability.

Sheela Foam is strategically leveraging Kurlon integration and market expansion for sustained growth. New showrooms, affordable products, and digital channels are poised to drive sales. Simultaneously, disciplined cost management and debt reduction efforts enhance profitability and financial resilience. The company’s forward-looking guidance outlines a clear path towards increased shareholder value via operational excellence and strategic expansion.

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