Transcript for the investor call held on August 05, 2026

August 07, 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 ended June 30, 2026 Financial Results. Dear Sir/Madam, Please find below the transcript of Investors’ conference call organized on August 05, 2026 post declaration of financial results for the quarter ended on June 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 Q1 FY27 Earnings Conference Call” August 05, 2026 MANAGEMENT: MR. RAHUL GAUTAM – CHAIRMAN AND MANAGING DIRECTOR – SHEELA FOAM LIMITED MR. TUSHAAR GAUTAM – VICE CHAIRMAN AND JOINT 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: MS. SAVITA SINGH – DOLAT CAPITAL MARKETS LIMITED Page 1 of 16 Sheela Foam Limited August 05, 2026 Moderator: Ladies and gentlemen, good day, and welcome to the Sheela Foam's Limited Q1 FY27 Earnings Conference Call hosted by Dolat Capital Markets Private 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 at the end of today's presentation. 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 would now like to hand the conference over to Ms. Savita Singh from Dolat Capital Markets Limited. Thank you, and over to you, ma'am. Savita Singh: Thank you, Manav. Good afternoon, everyone. I am Savita Singh, on behalf of Dolat Capital, welcome you all to the Q1 FY27 Earnings Conference Call of Sheela Foam Limited. I would like to thank the management for giving us this opportunity to host the call. Today from the management team, we have with us Mr. Rahul Gautam, Chairman and Managing Director; Mr. Tushaar Gautam, Vice Chairman and Joint Managing Director; Mr. Rakesh Chahar, Deputy Managing Director; and Mr. Amit Kumar Gupta, who's the Group CFO. I will now hand over the call to the management team for their opening remarks. Over to you, sir. Rahul Gautam: Thank you, Savita. Thank you very much. Good afternoon, ladies and gentlemen. At the outset, let me thank you all for joining this conference call to discuss our operational and financial performance for the first quarter of FY 2027. I trust you have had the opportunity to go through our results and the earnings presentation, which has been uploaded on our website. This year has begun on an excellent note for us. I'm happy to share that for the first time in the group's history, Sheela Foam has reported a consolidated revenues of more than INR1,000 crores and EBITDA of more than INR100 crores in the first quarter of any fiscal year. The group recorded a PAT of INR62 crores for the quarter, a substantial jump year-on-year. For the first quarter of this year, our standalone Indian business delivered revenue growth of 20% and standalone EBITDA growth of 13% on a year-on-year basis. Within this, the mattresses value grew by 15% and the volumes by 6%, while our foam business grew by 26% in value and 4% in volume terms. Despite the challenges of a volatile raw material prices amid the ongoing Middle East situation, we delivered EBITDA growth and a higher absolute EBITDA compared with last year's first quarter. The moderation in margin was on account of the sharp fall in raw material prices during the quarter. Foam witnessed higher growth than mattresses, which pulled gross margins down. However, this growth was cash accretive and supported better EBITDA generation. One might argue that in a falling raw material environment, we too could have chosen to moderate our foam growth to protect margins. Page 2 of 16 Sheela Foam Limited August 05, 2026 However, we took a different view. Sheela Foam did not become the industry leader by optimizing for a single quarter. It earned that position by being a partner it’s customers can depend upon through every phase of the cycle. Consistency of supply is a commitment we do not compromise with, and it is precisely why we continue to carry inventory and serve our customers without interruption. This is what distinguishes us from the unorganized sector, which tends to produce foam only when it is opportune to do so. That is when raw material prices are low. For us, leadership means standing by our customers most reliably at the very moment others choose to step back. We are among the finest research houses in the country in polyurethane foam and our foam serves as a brand and a benchmark in the furniture and other foam-based industries. While it is our constant endeavor to increase our market share in mattresses, we will always pursue opportunities that generate incremental cash flows. Our e-commerce business continues on a strong growth journey. Sales on our websites, which we call as Brand.com, grew by 69% year-on-year basis, while sales on platforms grew by 19% year-on-year. The category registered an overall year-on-year growth of 30% in Q1 FY27 with volumes growing by 23%. We are focused on increasing our category share and expanding the breadth of our portfolio. We are also poised to enter the Furniture segment under our flagship umbrella brands, synergizing and leveraging Furlenco's - designs, manufacturing and logistics capabilities. As a first step, we have launched sofa beds under both the Sleepwell and Kurlon brands, and the early market response has been encouraging. Scaling this business is a natural extension of our existing strengths. Our extensive EBO and COCO network provides a ready physical footprint to take these products across the country, while our own brand websites and platforms will drive our online presence. By building on existing infrastructure, we are able to pursue this opportunity in a capital-efficient manner, keeping incremental investments to a minimum. Our U2O, that is the unorganized to organized business, has now expanded to nearly 10,000 dealers across the country. This vast and growing network helped us clock 81% year-on-year growth with volumes growing by 19%. This substantial growth was driven by the expansion of our portfolio with the introduction of 5- and 6-inch mattresses in the category, which have been received exceptionally well by value- conscious consumers moving up the chain and resulting in better category realizations. Coming to our foreign subsidiaries, both Australia and Spain delivered an exceptional operating performance during the quarter. In Australia, Joyce revenue grew by 31% to INR120 crores with an EBITDA margin of 12.8% for the quarter compared with 6.8% in the quarter 1 of last year. Page 3 of 16 Sheela Foam Limited August 05, 2026 In Spain, the revenue stood at INR133 crores, a growth of 54% over last year, with the EBITDA margins improving to 14.7% compared with 5.7% in quarter 1 of last year. Some small part of this growth could be attributable to currency changes as well. The improvement in performance is due both to the strategic yield improvement programs and supply chain restructuring initiatives implemented over the last year and to the fact that our international businesses carry higher inventory, allowing lower cost inventory to run longer, [Showing first 8,000 characters — download PDF for full document]