Sheela Foam Ltd

Rating actions

• Bank loan facilities: assigned rating IND AA/Stable/IND A1+ for Rs 180 crore.
• Bank loan facilities: existing Rs 700 crore facilities reaffirmed IND AA/Stable/IND A1+.
• Non-convertible debentures: rating withdrawn for Rs 181.25 crore after full redemption.
• Final rating communication dated 12 Oct 2026 issued; prior 9 Oct 2026 draft disregarded.

Instruments & ratings

• Bank loan facilities: two lines of ratings—Rs 180 crore and Rs 700 crore facilities.
• Non-convertible debentures: rating withdrawn (Rs 181.25 crore; ISIN INE916U08012).

Rating agency & outlook

• Agency: India Ratings and Research Private Limited (Ind-Ra).
• Outlook for bank facilities: Stable.

Material changes & rationale

• NCD rating withdrawn due to full redemption.
• Final communication dated 12 Oct 2026; earlier communication draft to be disregarded.
• Rationale not disclosed in this excerpt.

Sheela Foam Ltd trading window closed from October 01, 2026 till the end of 48 hours after the Financial Results for the quarter and half-year ending September 30, 2026 shall be made public

Meeting Details

• Date: 29 Sept 2026; Time: 11:00 AM; Mode: Virtual; Type: Group investor meeting; Event: Bharat Connect Rising Stars

Participants

• Company management to participate through representatives.

Purpose

• General investor interaction with management.

Resolutions

• Item 1 (ordinary): Approval of appointment of Avantika Singh Gautam as Non-Executive Independent Director
• Outcome: Approved by requisite majority; deemed passed on Sep 19, 2026

Meeting Details

• One-on-one virtual investor meeting on September 17, 2026 (time not disclosed).
• Type: one-on-one; mode: virtual.
• Organised by management for investor interaction.
• Key participants: Managing Director and Company Secretary & Compliance Officer.
• Purpose: investor interaction.

Rating Action

• Bank loan facilities reaffirmed at IND AA/Stable; size INR 7,000 million.
• Non-convertible debentures reaffirmed at IND AA/Stable; size INR 1,812.50 million.
• Issuer rating withdrawn upon issuer's request.

Rationale

• FY26 revenue INR 38,208 million; EBITDA INR 3,934 million.
• FY26 net leverage 1.9x; interest coverage 4.1x.
• Improved scale and profitability support credit metrics.
• Cyclicality and raw material cost volatility are weaknesses.
• KEL acquisition broadens distribution; synergy benefits expected.
• Adequate liquidity; cash INR 1,703 million; positive free cash flow.

Outlook

• Outlook: Stable for the affirmed instruments.

Material Changes

• Issuer rating withdrawn; prior rating unchanged for bank/NCDs.

Financial Highlights

• FY26 revenue INR 38,208 million; EBITDA INR 3,934 million; leverage 1.9x.

CHRO resignation and interim arrangement

• Ms. Shaili Tyagi, CHRO, resigns effective August 31, 2026.
• MD to oversee CHRO responsibilities on interim basis until replacement.
• Reason: Resignation.

Meeting Details

• Date: August 26, 2026; time not disclosed.
• Type and mode: one-on-one meeting, physical at the corporate office.
• Organiser: company management via representatives.
• Purpose: one-on-one investor interaction.
• Note: no UPSI is intended to be discussed.