Sheela Foam Limited — Q2FY27 earnings call summary

• Multiple analyst queries on margin outlook; management expects 12%+ margin if raw material prices normalize
• Furlenco became subsidiary Oct 1, FY27 revenue INR229 Cr, EBITDA INR89 Cr (39% margin)
• Expect combined FY27 revenue ~INR5,000 Cr and EBITDA ~INR600 Cr (12%+ margin)
• Raw material inflation impacted margins; consolidated EBITDA margin ~9.6% in H1FY27
• Net debt expected ~INR800 Cr post Furlenco consolidation; free cash flow to reduce debt
• Price increases passed to market; volume growth soft due to affordability constraints
• Marketing spend increased to support demand; festive season shifted from Q2 to Q3
• Q2FY27 consolidated revenue grew 19% to INR1,045 Cr; PAT rose 5x to INR46 Cr

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