Sheela Foam Ltd (SFL) Quarterly Report Analysis & Insights

Sheela Foam Ltd

| Audited Standalone Financial Results – Q4 & FY 2025-26

⬤25th Jun 26

Summary : Sheela Foam Limited reported strong FY26 results driven by acquisitions and operational improvements, with a recommended dividend.

Quarterly Report Analysis & Insights

Financial Disclosures

Consolidated Total Expenses: 3701.20 Cr for FY26.
Standalone Total Expenses: 2845.85 Cr for FY26.
Significant employee benefits expense (Consolidated: 495.13 Cr, Standalone: 322.58 Cr) for FY26.
Finance costs (Consolidated: 95.15 Cr, Standalone: 70.98 Cr) for FY26.
Bad debts to Account receivable ratio: 0.0% (Standalone), 0.2% (Consolidated) for FY26.
Consolidated Revenue from Operations: 3820.84 Cr for FY26.
Consolidated Other Income: 54.27 Cr for FY26.
Standalone Revenue from Operations: 2962.27 Cr for FY26.
Standalone Other Income: 40.32 Cr for FY26.
Consolidated Net Cash Flow from Operating Activities: 409.32 Cr for FY26.
Consolidated Net Cash Flow from Investing Activities: 296.14 Cr for FY26.
Consolidated Net Cash Flow from Financing Activities: (715.72) Cr for FY26.
Standalone Net Cash Flow from Operating Activities: 258.63 Cr for FY26.
Standalone Net Cash Flow from Investing Activities: 291.95 Cr for FY26.
Standalone Net Cash Flow from Financing Activities: (569.73) Cr for FY26.
Consolidated Total Assets: 5116.77 Cr as of Mar 31, 2026.
Consolidated Total Equity: 3260.25 Cr as of Mar 31, 2026.
Consolidated Inventories: 392.60 Cr as of Mar 31, 2026.
Consolidated Trade Receivables: 470.44 Cr as of Mar 31, 2026.
Standalone Total Assets: 4161.73 Cr as of Mar 31, 2026.
Standalone Total Equity: 2912.18 Cr as of Mar 31, 2026.
Consolidated results include 14 entities (subsidiaries and jointly controlled entities).
Consolidated revenue (3820.84 Cr) is higher than standalone (2962.27 Cr) for FY26.
Consolidated total assets (5116.77 Cr) are higher than standalone (4161.73 Cr) for FY26.

Corporate Overview

Consolidated Revenue from Operations: Within India (2974.70 Cr), Outside India (846.14 Cr) for FY26.
Consolidated Non-current assets: Within India (2950.96 Cr), Outside India (855.95 Cr) for FY26.
Assessing impact of new Labour Codes on operations and financials.
Engaged in manufacturing of products of same type/class.
Factual and compliant, reporting financial results and regulatory adherence.
No reportable business segments as per Ind AS 108.
Amalgamation of Kurlon Enterprise Limited completed.
Amalgamation of Staqo World Private Limited completed.

Risk Factors

Significant cash outflow from financing.
New Labour Codes impact uncertain.
Profit boosted by depreciation change.
Current ratio below one.

Key Drivers

Kurlon Enterprise Limited amalgamation completed.
Increased stake in House of Kieraya.
Strong revenue growth year-on-year.
Improved net profit margin.

Auditor’s Report

Unmodified Opinion on both Standalone and Consolidated financial results.
Q4 FY26 results are balancing figures from audited full year and unaudited year-to-date Q3 figures.

Board Commentary

Recommended final dividend of Rs. 1 per equity share (20% on face value of Rs. 5) for FY 2025-26.
NIL certificate of Security Cover for Unsecured, Redeemable, Listed, Taxable Non-Convertible Debentures.
Amalgamation of Kurlon Enterprise Limited with Sheela Foam Limited.
Amalgamation of Staqo World Private Limited with Staqo Software Private Limited.
Investment in House of Kieraya Limited (Furlenco).

Management Discussion & Analysis

Operational Focus Areas

Assessing impact of new Labour Codes.

Performance Drivers

Strong consolidated revenue growth to 3820.84 Cr for FY26.
Improved consolidated net profit margin to 4.2% for FY26.
Strategic acquisitions and investments in House of Kieraya Limited.
Gain from sale of land and building (7.93 Cr in FY26).
Change in depreciation method increased profit before tax.

Risk Control Measures

Company is assessing the impact of new Labour Codes.

Critical Risks

Impact of new Labour Codes on employee benefits expense.