Sheela Foam Limited (SFL)

Consumer Durables · Consumer Durables · NSE · Updated 16 July 2026

₹761.55 ↑ 11% (1Y)

🎯 Key Takeaways

Sheela Foam Limited is in a growth phase driven by operational expansion and strategic reinvestment, evidenced by rising revenue and improving margins over recent quarters. The company has demonstrated consistent financial recovery from FY23 to FY25, with revenue growth accelerating and profitability stabilizing after a period of volatility.
Revenue grew 19% QoQ to ₹967 in Q3FY25.
⚠️ Bottom-line volatility: Despite revenue growth, net profit declined sharply in Q3FY25 to ₹19 crore from ₹47 crore in Q1FY25, raising concerns about su

Market Cap

₹6,606

P/E Ratio

47.3

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Sheela Foam Limited is in a growth phase driven by operational expansion and strategic reinvestment, evidenced by rising revenue and improving margins over recent quarters. The company has demonstrated consistent financial recovery from FY23 to FY25, with revenue growth accelerating and profitability stabilizing after a period of volatility. Management is focused on scaling operations while maintaining governance discipline, as reflected in recent board appointments and dividend policy.

📰 What's Happening

In Q3FY25, Sheela Foam reported revenue of ₹967 crore, up from ₹813 crore in Q2FY25 and ₹810 crore in Q1FY25, indicating strong sequential growth. Operating profit rose to ₹95 crore with an OPM of 9.1%, up from 8.5% in the prior quarter, reflecting improved cost efficiency. Net profit surged to ₹19 crore from ₹9 crore in Q2FY25, though it remains below the ₹47 crore recorded in Q1FY25, suggesting volatility in bottom-line performance. The company approved its 54th AGM on July 16, 2026, where shareholders will vote on a proposed final dividend of Re. 1 per share (20% yield), reappointment of statutory auditors M S K A & Associates LLP for five years, and the appointment of three new independent directors. The board also announced reappointments of key managerial personnel effective April 1, 2027, and approved remuneration for cost auditors. Shareholders must register by July 9, 2026, to be eligible for the dividend, which will be paid within 30 days of the AGM. The AGM notice includes procedural details for e-voting via NSDL/CDSL from July 13–15, 2026, and highlights governance practices and stakeholder engagement protocols.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	729	645	613	879	845	810	813	967
Operating Profit	95	113	91	108	151	121	101	95
OPM %	10.6%	12.0%	10.8%	8.7%	9.5%	7.4%	8.5%	9.1%
Net Profit	46	65	44	31	65	47	9	19
EPS	₹4.69	₹4.41	₹4.48	₹2.83	₹5.94	₹4.23	₹0.90	₹1.73

The financial trajectory shows a clear recovery from the lows of Q4FY23 and Q2FY24, with revenue growing steadily from ₹613 crore in Q2FY24 to ₹967 crore in Q3FY25, and operating profit margins stabilizing around 9%. However, net profit declined in Q3FY25 to ₹19 crore from ₹47 crore in Q1FY25, indicating that while top-line growth is strong, bottom-line volatility persists, possibly due to timing of expenses or one-time items. The company has maintained healthy operating margins, with OPM improving from 7.4% in Q1FY25 to 9.1% in Q3FY25, suggesting better cost control. Despite this, EPS fluctuated significantly, peaking at ₹4.23 in Q1FY25 before dropping to ₹1.73 in Q3FY25, reflecting the impact of net profit variability on shareholder returns. Management has not yet provided detailed commentary on the drivers of this volatility, but the consistent revenue growth supports confidence in underlying demand.

🔮 Management Outlook & What's Next

Management has not provided explicit forward guidance on revenue or margin expectations in the available filings, but the proposed final dividend of Re. 1 per share for FY2025-26 signals confidence in cash flow generation and commitment to shareholder returns. The reappointment of auditors and independent directors suggests stability in governance and a focus on long-term oversight. Management emphasized procedural readiness for the AGM, including e-voting and dividend payment timelines, indicating operational preparedness. The reappointment of key managerial personnel effective April 1, 2027, points to continuity in leadership. While no strategic roadmap was disclosed, the consistent focus on governance, dividend policy, and stakeholder engagement reflects a maturing approach to capital allocation and investor relations.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Consumer Durables

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
Titan Company Limited	3.70 L Cr	77.6	34.3%	41.0%	0.88
Asian Paints Limited	2.50 L Cr	65.0	26.0%	19.8%	0.04
LG Electronics India Limited	1.07 L Cr	—	—	—	—
Havells India Limited	75,873	54.2	—	—	—
Dixon Technologies (India) Limited	66,754	75.9	—	—	—
Berger Paints (I) Limited	62,200	54.5	—	—	—
Voltas Limited	40,722	56.8	—	—	—
Kalyan Jewellers India Limited	36,461	54.6	—	—	—
Blue Star Limited	34,091	61.2	—	—	—
Amber Enterprises India Limited	29,854	164.3	8.4%	4.1%	0.62

🔗 Peer Stock Analyses

TITAN ASIANPAINT LGEINDIA HAVELLS DIXON

⚠️ Risk Factors

1. Bottom-line volatility: Despite revenue growth, net profit declined sharply in Q3FY25 to ₹19 crore from ₹47 crore in Q1FY25, raising concerns about sustainability of earnings. 2. Dividend dependency on AGM approval: The final dividend is contingent on shareholder vote, introducing procedural risk if approval is delayed or denied. 3. Margin pressure: Operating profit margin remains below historical highs (peaking at 12% in Q1FY24), suggesting potential cost inflation or competitive pricing pressure. 4. Governance transition: Appointment of three new independent directors may bring strategic shifts, but could also lead to short-term governance uncertainty or board inexperience in key decisions.

📋 Recent Filings

🧠 Analyst's Read

Sheela Foam is demonstrating solid top-line growth and improving operational efficiency, but earnings volatility and reliance on shareholder approval for dividends introduce uncertainty. The company is in a growth phase with strong governance momentum, but investors should monitor the sustainability of profitability and the outcome of the upcoming AGM. Key next steps include the reappointment of directors and auditors, and the actual disbursement of the proposed dividend. Watch for management commentary on margin outlook and reinvestment plans post-AGM.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-16.

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