India’s leading polyurethane foam and home comfort products manufacturer Sheela Foam Ltd is looking to accelerate growth by expanding into select adjacent categories, including premium and luxury mattresses and foam-led solutions, while strengthening its raw material capabilities to enhance supply resilience and profitability.
In a message to shareholders in the company’s Annual Report 2026, Sheela Foam Chairman & Managing Director Rahul Gautam said the company remains focused on strengthening customer engagement, advancing innovation and enhancing operational excellence across its businesses.
Focus on adjacent categories
“We will pursue growth in select adjacent categories, including premium and luxury mattresses and foam-led solutions. We also remain focused on strengthening our raw material capabilities to improve supply resilience, reduce exposure to external volatility and support sustainable, profitable growth,” Gautam said.
The company which owns popular brands like Sleepwell, Kurl-On and Furlenco, will continue expanding its market reach through a deeper physical retail network, including company-owned company-operated (COCO) stores, while strengthening its presence across e-commerce platforms with a sharper focus on its own brand.com channel.
Industry tailwinds remain strong
According to Gautam, rising consumer aspirations, increasing awareness of sleep wellness and the ongoing shift towards organised brands are reshaping the mattress and comfort products industry, creating significant growth opportunities.
“The opportunities before us are significant. Rising aspirations, increasing awareness of sleep wellness and the ongoing shift towards organised brands are reshaping our industry and expanding the addressable market,” he said.
U2O platform drives growth
Sheela Foam’s U2O platform now spans more than 24 states and is supported by over 8,400 touchpoints, helping the company connect with customers across established as well as emerging markets.
The platform enabled category volume growth of 65% year-on-year and value growth of 111% year-on-year during FY26.
The company’s e-commerce business also maintained strong momentum, recording volume growth of 49% and value growth of 52% year-on-year.
Foam business delivers strong performance
The foam business reported robust growth during the year, with volumes rising 18% and value increasing 14%.
The growth was witnessed across technical foam, comfort foam and furniture cushioning applications.
International operations also contributed positively, with Australia and Spain delivering EBITDA margins of 10% and 10.4%, respectively, supported by improved operating efficiencies.
Staqo and Furlenco strengthen portfolio
Staqo continued to scale up profitably, reporting revenue of ₹70 crore, up 35% year-on-year, while maintaining EBITDA margins of around 28%.
Gautam said these businesses are helping broaden growth opportunities, diversify revenue streams and strengthen the company’s integrated business model.
Furlenco also made encouraging progress during the year, improving both scale and operating performance. Enhanced ecosystem integration and rising customer adoption helped increase its subscriber base to more than 1.7 lakh.
During FY26, Furlenco raised ₹125 crore in equity funding and continued to expand its omni-channel presence through Sleepwell and Kurlon stores, receiving encouraging customer response, Gautam added.