Synopsis: A mattress maker’s inventory locked on the higher circuit after a pointy earnings turnaround, sturdy quantity development, and a serious dividend shock.
A widely known Indian mattress and foam firm noticed its inventory surge on Thursday, locking in on the higher circuit restrict. The transfer got here after the corporate reported a powerful set of numbers for the January-March quarter and the total monetary yr 2025-26, delighting traders who had been ready for clear indicators of restoration.
With a market cap of Rs. 6,603 Crore, the shares of Sheela Foam Ltd. are buying and selling at a worth of Rs. 608 per share i.e. 11.89% up from its earlier closing worth of Rs. 543.35. It at the moment trades at P/E of 43.
Sheela Foam, the corporate behind fashionable mattress manufacturers Sleepwell and Kurlon, noticed its inventory hit the 20% higher circuit at ₹652 on Might 15, 2026, after reporting a powerful set of outcomes for Q4FY26 and the total yr FY26. Let’s break down what occurred and why traders bought so excited.
What Are the Numbers?
For the total yr FY26, Sheela Foam’s consolidated income grew 11% to ₹3,821 crore. However the actual story was in profitability. The corporate’s core EBITDA – a measure of working revenue – jumped 46% to ₹414 crore, with margins bettering sharply to 10.8% from 8.2% the earlier yr. Internet revenue for the total yr got here in at ₹161 crore, up 78% from ₹90 crore in FY25.
The quarterly numbers had been much more thrilling. In Q4FY26, consolidated income grew 24% year-on-year to ₹1,050 crore. Quarterly internet revenue surged to ₹92 crore, i.e. a bounce of over 600% from ₹13 crore reported in the identical quarter final yr. That sort of bounce is uncommon and tends to catch the market’s consideration immediately.
What Drove the Development?
The expansion was broad-based. Mattress volumes grew 13% in Q4FY26 and 12% for the total yr. Foam volumes had been even stronger, rising 34% in This autumn and 18% for the total yr. Each the Sleepwell and Kurlon manufacturers confirmed wholesome momentum, with Kurlon rising volumes by 14% for FY26.
The e-commerce channel stood out as a key development driver. Gross sales on third-party platforms grew 39%, whereas gross sales on the corporate’s personal web site surged 136% year-on-year. The corporate’s finances vary U20 additionally confirmed extraordinary traction, with volumes rising 65% and worth rising 111% in FY26.
On the distribution aspect, the corporate added 600 internet new showrooms through the yr. The U20 vary now reaches over 8,400 sellers throughout greater than 5,500 cities in 24+ states.
Dividend announcement
Including to the thrill, the corporate introduced a closing dividend of 20%, which implies ₹1 per share. For income-seeking traders, this was an added bonus on high of the sturdy earnings.
Concerning the Firm
Sheela Foam Restricted is India’s largest producer of polyurethane foam and holds round 30% market share within the branded mattress phase. The corporate operates manufacturers together with Sleepwell and Kurlon in India, and Joyce and Interplasp internationally, together with the Furlenco furnishings rental enterprise and Staqo IT providers.
Disclaimer: The views and funding suggestions expressed by funding specialists/broking homes/ranking companies on tradebrains.in are their very own, and never that of the web site or its administration. Investing in equities poses a danger of monetary losses. Traders should due to this fact train due warning whereas investing or buying and selling in shares. Commerce Brains Applied sciences Personal Restricted or the creator will not be chargeable for any losses prompted on account of the choice based mostly on this text. Please seek the advice of your funding advisor earlier than investing.
