Transcript of Investor Called held on November 03, 2026

November 09, 2026 The BSE Limited The National Stock Exchange India Limited Phiroze Jeejeebhoy Towers Exchange Plaza, Bandra Kurla Complex Dalal Street, Mumbai-400001 Bandra (E), Mumbai-400051 Scrip code: 540203 NSE Symbol: SFL Subject: Transcript of Investors’ Conference Call for Quarter and Half-Year ended September 30, 2026 Financial Results. Dear Sir/Madam, Please find below the transcript of Investors’ conference call organized on November 03, 2026 post declaration of un-audited financial results for the quarter and half-year ended on September 30, 2026 for your information and records. Thanking You, Yours truly, For Sheela Foam Limited (Md. Iquebal Ahmad) Company Secretary & Compliance Officer SHEELA FOAM LTD. #14, Sleepwell Tower, Sector 135, Noida- 201301 Ph: Int-91-120-4868400 •Email: investorrelation@sheelafoam.com • contactus@sheelafoam.com Regd. Office: 1002 to 1006 The Avenue, International Airport Road, Opp Hotel Leela Sahar, Andheri East, Mumbai, Maharashtra, India, 400059 • Ph: Int-91-22-28265686/88/89 Toll Free: 1800 103 6664 • www.sleepwellproducts.com • www.sheelafoam.com CIN- L74899MH1971PLC427835 “Sheela Foam Limited Q2 & H1 FY27 Earnings Conference Call” November 03, 2026 MANAGEMENT: MR. RAHUL GAUTAM – CHAIRMAN AND MANAGING DIRECTOR – SHEELA FOAM LIMITED MR. RAKESH CHAHAR – DEPUTY MANAGING DIRECTOR – SHEELA FOAM LIMITED MR. AMIT KUMAR GUPTA – GROUP CHIEF FINANCIAL OFFICER – SHEELA FOAM LIMITED MODERATOR: MR. DEVANSHU BANSAL – EMKAY GLOBAL FINANCIAL SERVICES LIMITED Page 1 of 18 Sheela Foam Limited November 03, 2026 Moderator: Ladies and gentlemen, good day and welcome to Sheela Foam Limited Q2 H1 FY27 Earnings Conference Call hosted by Emkay Global Financial Services Limited. As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Devanshu Bansal from Emkay Global Financial Services Limited. Thank you, and over to you, Mr. Bansal. Devanshu Bansal: Yes. Hi, good afternoon, everyone. I would like to welcome the management and thank them for this opportunity. We have with us today Rahul Gautam, Chairman and Managing Director; Tushaar Gautam, Vice Chairman and Joint Managing Director; Rakesh Chahar, Deputy Managing Director and Amit Kumar Gupta, Group Chief Financial Officer. I shall now hand over the call to the management for the opening remarks. Over to you, gentlemen. Rahul Gautam: Thank you, Devanshu. I just want to make a little correction that Tushaar Gautam is not available at this time. Good afternoon, ladies and gentlemen, and thank you for joining us to share our results for the second quarter Q2 and the first half, that is H1 of this year. I hope you've had the chance to go through the numbers and the presentations. Let me begin with the environment first. As it has already really shaped this quarter. From February onwards, this has been an absolutely unprecedented kind of time for our industry. On a ballpark, the crude is up by about 50%, and our 2 key raw materials have moved even more. Since mid-February, polyol, our main chemical or main raw material is up by 65% and TDI by 33%. Sustained increases of this kind have simply not been seen before. The war has disrupted the entire supply chain and logistics. Some of the facilities in the Middle East have been partially destroyed and others are restricted because of the Hormuz blockage. Additionally, the festive season, which was in late September last year, moved into October this time, resulting in a shift of demand from Q2 to Q3. However, we recognize that these are the times, where the strength of a leader shows. Our first responsibility when things get this hard is to keep serving our customers, and that is what we did. We kept material flowing through supplier relationships that have been built over decades at a time when many of the smaller unorganized players simply could not source or hold their prices. With the strength of the brands, we've had the advantage of being able to pass these increases on to the market and eventually to the consumer. The consumer has his own affordability benchmarks also. A customer who comes in with about INR20,000 to spend on a mattress can stretch a bit, but not to the full impact of the large price increase. The same money now buys him a slightly lower category of the product, and that change impacts us even when values may hold up. With demand still soft, we have chosen to spend more and Page 2 of 18 Sheela Foam Limited November 03, 2026 not less on our brands, advertising and consumer schemes. We went out and launched the Great Sleepwell Festival across the country. It has turned out one of the strongest schemes we have ever introduced for our consumers. This does take off some profitability in the near term, but it has built a healthy pipeline of demand, as we go into the festive quarters of the second half. The outcome is that even after a margin hit, we have held our profitability in absolute terms. In a quarter like this, protecting the core of the business while still investing in it was important to us. The numbers tell the story quite clearly. On a consolidated basis, revenue for the quarter grew by about 19% to a level of INR1,045 crores. The first time that we have crossed the INR1,000 crores revenue number in Q2 and also our third consecutive quarter of a 15% plus growth. Our operating EBITDA for the quarter was INR87 crores, almost the same as we delivered in the corresponding quarter a year ago. PAT was INR46 crores, and that is about 5x of last year. Coming to the half year, revenue grew about 22% to a level of INR2,076 crores -- INR2,077 crores, and the operating EBITDA grew 23% to a INR200 crores mark from INR162 crores last year at a margin of 9.6%. And I must also add that the PAT rose to INR109 crores, that is more than 6x last year. Though we clocked higher gross margins than the first quarter of this year, our investment in brand and marketing kept our operating EBITDA margins neutral. I now want to spend a little time on Furlenco because I believe it genuinely changes the picture of our group. From 1st October, this year, Furlenco has become a subsidiary of Sheela Foam. This is not a sudden step. It is something we have worked towards for some time and widen our reach, our scale and the very nature of what we do. Let me explain the business because it is very different from our existing business. Furlenco is primarily a furniture rental company. It gives people in our cities access to well-designed furniture and that too on a subscription basis without having to own anything or everything. We think nobody would want to rent these things. That is what we have always been thinking. But today, it is not only the floating population, it is people who simply like a change, who want their furniture kept in good shape, who move homes or move cities are indulging in this offer. Furlenco offers them a catalog of more than 300 products. It is present in more than 30 cities. It has a subscriber base of more than 200,000 or 2 lakh subscribers, and it runs a disciplined asset- based model, keeping the asset utilization much above 90%. That discipline is what makes it profitable. What this business has done in a short time says a great deal about our ability to spot value and build it. When we invested in FY '24, Furlenco had a revenue of about INR139 crores and had a subscriber base of 70,000. It was also losing close to INR130 crores a year. Post the turnaround, this year, we expect it to close at INR500 crores mark with an EBITDA margin of about 40% from deep losses to a profitable business with revenue almost 4x where it was in about 3 years and still growing at more than 30%. Page 3 of 18 S [Showing first 8,000 characters — download PDF for full document]