Sheela Foam's 10.55% margin trails sector median in Q1FY27
The consolidated results were filed after market close, while Rs 25.5 cr of other income supported profit before tax of Rs 82.7 cr.
Filed 04 Aug 2026, 16:29 IST · after market close · Sheela Foam Ltd (SFL)
Key takeaways
- Consolidated operating margin of 10.55% was 2.56 percentage points below the 13.11% median for 72 Consumer Discretionary peers.
- Other income of Rs 25.5 cr was a meaningful contributor alongside profit before tax of Rs 82.7 cr.
- Net profit of Rs 62.34 cr came after a 24.62% tax rate and included the contribution from other income.
Price around the results
Operating margin trails the Consumer Discretionary median
Sheela Foam reported a consolidated operating margin of 10.55%, 2.56 percentage points below the 13.11% median among 72 Consumer Discretionary peers that had reported the quarter. With no year-on-year or sequential comparison in the release, the peer gap is the clearest read on the quarter's operating position.
Other income helped bridge operating profit to pre-tax earnings
The bridge from operating profit of Rs 108.9 cr to profit before tax of Rs 82.7 cr reflects Rs 25.5 cr of other income against Rs 17.82 cr of interest and Rs 33.88 cr of depreciation. Net profit was Rs 62.34 cr after a 24.62% tax rate, so reported earnings included a non-operating contribution.
Management highlighted environmental and workforce initiatives
Management said a new sewage treatment plant had commenced at Nandigram and that Jabalpur was using more than 35% solar energy. The company also said it planted more than 500 trees in Q1FY27. For the longer term, management said it targets water consumption intensity of 39 KL per person by FY30 and gender diversity of 10% by 2030, versus 7.9% in 2026.
The filing came after market close
Sheela Foam filed the consolidated results at 16:29 IST on 4 August 2026, after market close. That leaves the immediate stock response outside this results read-through; the release does not provide a reaction history for comparison.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,032 cr |
| Other income | ₹26 cr |
| Expenses | ₹923 cr |
| Operating profit | ₹109 cr |
| Operating margin (%) | 10.55% |
| Interest | ₹18 cr |
| Depreciation | ₹34 cr |
| Profit before tax | ₹83 cr |
| Tax | ₹20 cr |
| Net profit | ₹62 cr |
| EPS (₹) | ₹5.63 |
Operating margin of 10.55% compares with a Consumer Discretionary sector median of 13.11% across 72 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company planted more than 500 trees in Q1 FY27.
- The company reported current usage of more than 35% solar energy at Jabalpur.
Guidance & outlook
- The company targets gender diversity of 10% by 2030, up from 7.9% in 2026.
- The company targets reducing water consumption intensity to 39 KL per person by FY30.
Expansion
- A new sewage treatment plant commenced at Nandigram.
New initiatives
- The company conducts an employee energy conservation training program.
What to watch
- Whether operating margin holds above 10.55% in the next reported quarter.
- The size of other income relative to Rs 82.7 cr of profit before tax.
- Progress against management's water-intensity target of 39 KL per person by FY30.