Shares of Sheela Foam Limited surged as much as 18.89% to ₹646 on the NSE on May 15, touching an intraday high of ₹652 — its upper price band — in one of the strongest single-session moves in the stock’s recent history, after the Sleepwell and Kurlon mattress maker reported a transformational set of Q4FY26 numbers driven by the full realisation of Kurlon acquisition synergies.
The stock opened at ₹625 against a previous close of ₹543.35 and quickly pushed toward the upper circuit, with the day’s range spanning ₹625 to ₹652. Average daily volume for the stock runs at 1,00,910 shares, making the buying interest at open particularly pronounced.
Sheela Foam posted consolidated profit after tax of ₹91.28 crore for Q4FY26, a surge of 597.85% from ₹13.08 crore in the year-ago quarter — a near-sevenfold jump that reflects both the operating leverage now embedded in the integrated platform and the meaningful recovery from what had been nine consecutive quarters of weak profitability before the Kurlon integration took hold. Revenue from operations rose 23.59% year on year to ₹1,050.06 crore from ₹849.61 crore in Q4FY25.
The operating performance was equally compelling. Core EBITDA grew 90% to ₹121 crore from ₹64 crore in Q4FY25, with EBITDA margin expanding 400 basis points to 11.5% from 7.5% — driven by higher volumes, improved gross margins, and operating leverage across the enlarged manufacturing and distribution base. The mattress segment registered volume growth of 13% during the quarter, while the foam segment climbed 34%.
Chairman and Managing Director Rahul Gautam described FY26 as the year of realising the benefits of the Kurlon acquisition, noting that both Sleepwell and Kurlon brands delivered strong growth alongside commendable momentum in foam. He said the company has achieved its highest-ever turnover and EBITDA in its history, reflecting the strength of the integrated platform and focused execution toward profitable growth.
The Kurlon integration has been the central strategic question for Sheela Foam since it acquired a 64% stake in rival Kurlon Enterprise Limited in March 2024, combining India’s two most recognised mattress brands under one operating platform. The Q4FY26 numbers provide the first full-year audited evidence that the integration is delivering on its financial promises — volume growth across both brands, margin expansion, and a return to strong profitability after a prolonged integration-related drag on earnings.
The board recommended a final dividend of ₹1 per share at a face value of ₹5 each, representing a payout of 20% for FY26, to be paid within 30 days of shareholder approval.
At a trailing P/E of 77.66x following the day’s surge, the stock’s valuation now prices in continued execution on the Kurlon platform. An investor and analyst conference call is scheduled for 4:00 PM IST on May 15, where management commentary on FY27 volume outlook, margin sustainability, and the broader consumer environment will be watched closely.
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