Sheela Foam Q1FY27: consolidated PAT surges 9.5x YoY on weak base, revenue up 26%

Sheela Foam's consolidated PAT for Q1 FY27 came in at ₹62.3 Cr against ₹6.55 Cr a year ago — the ~9.5x jump management itself highlighted — on revenue of ₹1,031.9 Cr, up 25.6% YoY though down 1.7% QoQ from Q4 FY26's ₹1,050.1 Cr. YoY is the right lens here: Q1 FY26 was an unusually weak quarter (NPM just 0.86%), so even after stripping the ₹6.26 Cr exceptional gain on the Haridwar land sale, adjusted PAT of ~₹56 Cr is still up roughly 756% YoY — real recovery, not just base-effect optics, but the raw 9.5x headline overstates the underlying run-rate. Standalone PAT, by contrast, grew a much smaller ~3.1x YoY (₹43.9 Cr vs ₹10.7 Cr) — the gap versus consolidated is driven by a 42% YoY jump in overseas subsidiary revenue (₹262.7 Cr vs ₹184.9 Cr) and an 81% YoY rise in the Furlenco/House of Kieraya JV profit share (₹3.11 Cr vs ₹1.72 Cr), both of which sit only in the consolidated books. Margins tell a more mixed story than the PAT headline suggests. Consolidated NPM improved sharply YoY (6.0% vs 0.86%) but slipped QoQ from 8.7%, while EBITDA-level margin (PBT before exceptionals + finance cost + depreciation, over revenue) was ~12.1% this quarter versus ~12.6% in Q4 FY26 and ~9.2% a year ago — expanding YoY but giving back some of the sequential gain. That keeps margins within the '11-12% bracket' management flagged as the current level on the Q4 FY26 call, rather than showing the clear step-up toward improvement it had guided for; the 6.26 Cr one-off gain also flatters the reported bottom line versus the underlying margin trend. On guidance and Street: management's FY27 call was for value growth exceeding 15%, and Q1's 25.6% YoY revenue growth already clears that bar. Pre-result brokerage estimates (Univest) had pegged Q1 revenue at ₹907-1,044 Cr and PAT at just ₹6-8 Cr — actual revenue landed near the top of that range, but PAT beat the estimate by roughly 8x, a sharp street beat on profitability even allowing for the low comparison base and the one-off gain. Management's own release framed the quarter as a continuation of 'healthy momentum' in mattress and foam, with e-commerce and U2O initiatives 'gaining scale' — the 25.6% topline growth and Kurlon-driven consolidated strength support that framing, though the flat-to-lower QoQ margin undercuts any claim of margin momentum this specific quarter. Corporate developments this quarter — completion of the Kurlon-related subsidiary integration, board reconstitution with Avantika Singh Gautam's appointment as Non-Executive Director, and payment of the ₹1/share FY26 final dividend on July 30, 2026 — are largely structural and don't materially move this quarter's P&L, but the board addition follows through on the governance changes flagged in the pre-result watch list.