Sheela Foam Limited (SFL)
Micro CapConsumer stocks · Micro cap · NSE
Sheela Foam Limited (SFL) is a leading Indian manufacturer of foam and mattresses, operating under brands like Sleepwell and Kurlon. It also has international presence in Australia (Joyce) and Spain (Interplasp), and an e-commerce platform (STAQO). The company focuses on comfort foam, technical foam, and furniture cushioning.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is supportive, price trend is neutral, and recent execution is consistent.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 90/100Rev +26% YoY · PAT +786% YoY · margin expansion · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,032 Cr | +25.7% | -1.7% |
| EBITDA | ₹109 Cr | +45.3% | -6.8% |
| Operating margin | 11.0% | +200 bps | +0 bps |
| PAT | ₹62 Cr | +785.7% | -32.6% |
| PAT margin | 6.0% | +516 bps | -275 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
SFL reported strong Q4 FY26 consolidated revenue growth of 24% YoY to 1,050 Cr, with Core EBITDA margin expanding to 11.5% (up 400 bps YoY). FY26 consolidated revenue grew 11% YoY to 3,821 Cr, with Core EBITDA margin at 10.8% (up 261 bps YoY). Net debt reduced by 156 Cr.
The company demonstrated robust financial and operational performance, driven by strong volume growth in both mattress and foam segments, coupled with significant e-commerce expansion. Margin expansion and debt reduction are positive indicators, though sequential revenue and mattress volume decline in Q4 warrants monitoring.
Revenue by Standalone Segment (FY26)
Latest issuer-disclosed distribution across 5 reported categories.
E-commerce Expansion
FY26 sales grew 39% YoY on platforms and 136% YoY on Brand.com, indicating strong digital channel adoption.
Mattress Volume Growth
Standalone mattress volume increased 12% YoY in FY26 and 13% YoY in Q4 FY26.
Foam Volume Growth
Standalone foam volume grew 18% YoY in FY26 and 34% YoY in Q4 FY26.
Solar Power Capacity
500 kWp solar addition completed at Jabalpur in FY26.
Gross Margin Expansion
Consolidated gross margin improved by 98 bps YoY in Q4 FY26 and 106 bps YoY in FY26, suggesting favorable input costs or product mix.
EBITDA Margin Improvement
Consolidated Core EBITDA margin expanded by 400 bps YoY in Q4 FY26 and 261 bps YoY in FY26.
Net Debt Reduction
Net debt reduced by 156 Cr in FY26.
Sequential Revenue Decline
Consolidated revenue declined 2% QoQ in Q4 FY26, and standalone revenue declined 3% QoQ.
Sequential Mattress Volume Decline
Standalone mattress volume decreased 21% QoQ in Q4 FY26.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY provides a clear view of underlying growth trends and mitigates seasonality in the consumer sector. QoQ is relevant for assessing sequential momentum and margin performance, especially for Q4 results.
Consolidated Revenue Growth
Q4 FY26: 24% YoY; FY26: 11% YoY. Q4 FY26 revenue was -2% QoQ.
Consolidated Core EBITDA Margin
Q4 FY26: 11.5% (up 400 bps YoY, up 62 bps QoQ); FY26: 10.8% (up 261 bps YoY).
Standalone Mattress Volume Growth
Q4 FY26: 13% YoY (914K units); FY26: 12% YoY (3692K units). Q4 FY26 volume was -21% QoQ.
Standalone Foam Volume Growth
Q4 FY26: 34% YoY (14975 Tn); FY26: 18% YoY (54088 Tn). Q4 FY26 volume was 1% QoQ.
Sustainability Goals 2030
Identified 4 Sustainable Developmental Goals for 2030, including 10% gender diversity, 13% waste reduction, 11 persons with disability employment, and ISO 45001 safety certification.
Future Solar Power Projects
Planning 1000+ kWp solar power projects at Erode, Talwada & Nandigram in FY27 & FY28.
Waste Monetization Target
Aiming for 100% waste monetization by FY30.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Consolidated Revenue Growth | 24% YoY in Q4 FY26, 11% YoY in FY26 | Sustained double-digit YoY growth and positive QoQ momentum. |
| Consolidated Core EBITDA Margin | 11.5% in Q4 FY26 | Maintenance or further expansion of margins, especially given input cost trends. |
| E-commerce Sales Growth | 39% (platforms), 136% (Brand.com) YoY in FY26 | Continued high growth rates in digital channels. |
| Standalone Mattress Volume Growth | 13% YoY in Q4 FY26 | Rebound in QoQ volume growth and sustained YoY growth. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
47NeutralSMA20 -13.3% / mo · MACD +
Technical chart
SFLdaily · 1Y · AUTO+21.4%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 36. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- SMA20 falling (~15.3% over last month) — short-term momentum negative.
- RSI(14) at 36 — rising, no extreme reading.
- MACD above signal but histogram contracting — bullish momentum cooling.
- 22% off 52W high · 42% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation & score drivers
U-Score 28 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 28 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 10.0%.
- Piotroski is strong at 7/9.
- Cash flow contributes 10/10 to the score.
Main drags
- Fair-value margin of safety is negative at -669.8%.
- Valuation is weaker at 0/30; verify the latest quarterly trend.
- Quality is weaker at 0/20; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Healthy Trust: Claim history is still being built. It ranks around the 83rd percentile of the scored universe and 86th percentile within Consumer. Main check: financial discipline is weak at 40/100.
High Trust Lite: Promoter holding is 65.4%. Key concern: ROCE is low at 6.1%.
Generally investable credibility. Look for weak sub-scores before increasing position size.
overall median 67 · Consumer: 86th pctile, median 66 · Micro: 70th pctile, median 73
126 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Healthy Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 65.4%.
- ▸Promoter pledge is zero.
- ▸FCF yield is 10%.
- ▸7 years of positive FCF.
Trust risks
- ▸ROCE is low at 6.1%.
- ▸ROE is low at 4.8%.
- ▸1 of the latest 4 quarters had PAT decline worse than 25% YoY.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- 34.70
- P/B
- 2.17
- EV/EBITDA
- 13.44
- Market Cap
- 7063.00Cr
Profitability
- ROE
- 4.80%
- ROCE
- 6.11%
- ROA
- 4.25%
- Dividend Y
- 0.15%
Growth (CAGR)
- Revenue 5Y
- 9.00%
- EPS 5Y
- -8.00%
- Revenue 3Y
- 10.00%
- EPS 3Y
- -7.00%
Balance Sheet
- Debt/Equity
- 0.28
- Interest Coverage
- 5.08×
- Altman Z
- 4.45
- Book Value
- 298.00
Cash Flow
- FCF Yield
- 10.01%
- FCF Positive Y
- 7/5
- OCF
- 409.00 Cr
- EPS TTM
- 19.68
Shareholding
- Promoter Hold
- 65.39%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 51%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.