Sheela Foam shares surge 20% after profit more than doubles in December quarter

Shares of Sheela Foam, the maker of popular mattress brand Sleepwell, rose as much as 20% to hit an intraday high of ₹628.30 on the National Stock Exchange on Wednesday, February 4, after its profit more than doubled in December quarter. On the BSE, Sheela Foam shares touched an intraday high of ₹629.50 amid spike in trading activity.

Sheela Foam, post market hours on Tuesday, reported standalone net profit of ₹39 crore in the third quarter current financial year (Q3FY26), marking an increase of 129% from ₹17 crore in the same period last year.

The Noida-based company's revenue from operations rose 8% to ₹842 crore in October-December period from ₹781 crore in the year-ago period.

Sheela Foam reported strong operational performance in December quarter as its EBITDA (earnings before interest, taxes, depreciation and amortization) also known as operating profit rose 31% to ₹85 crore and its EBITDA margin improved by 180 basis points to 10.10%.

During the quarter, mattress registered volume growth of 11% and foam segment grew by 20%

"Kurlon acquisition has begun delivering tangible benefits, driving a turnaround at Sheela Foam Limited. The business has entered a phase of double-digit growth, with both the mattress and foam segments recording strong volume expansion,” said Rahul Gautam, Chairman and Managing Director, Sheela Foam.

“Profitability and cash generation have continued to improve sequentially each quarter, supported by improved performance across all key markets - India, Australia, and Spain. We remain confident in our ability to deliver sustained, profitable growth backed by robust cash generation, thereby creating long term value for all stakeholders," he added.

Meanwhile, Sheela Foam shares were witnessing higher than usual trading activity as trading volume in Sheela Foam shares surged by 20 times to 25.37 lakh shares compared with an average trading volume of 1.27 lakh shares.

On the BSE, as many as 1.4 akh Sheela Foam shares changed hands compared with an average of 3,803 shares traded daily in the past two weeks.

As of 11:45 am, Sheela Foam shares traded 15% higher at ₹602, outperforming the NIFTY Microcap 250 index which was up 0.72%.