Are Sheela Foam latest results good or bad?

Sheela Foam has released its financial results for the quarter ending June 2025, which reveal a mixed picture of operational trends. The company reported a modest year-on-year growth in net sales of 1.44%, a significant decline compared to the previous year's growth of 25.53%. This indicates a slowdown in revenue generation.
On the profitability front, Sheela Foam's consolidated net profit experienced a substantial decline of 83.85% year-on-year, contrasting sharply with a positive growth of 6.83% in the same quarter last year. This decline in profit after tax (PAT) to Rs 7.43 crore raises concerns about the company's near-term profitability outlook.

Despite these challenges, there was a notable improvement in operational efficiency, as evidenced by the operating profit margin reaching its highest level in the last five quarters at 9.19%. This suggests that the company has made strides in managing its operational costs effectively. However, it is important to note that a significant portion of the profit before tax, approximately 98.38%, was derived from non-operating income, which raises questions about the sustainability of the company's income sources.

Additionally, the earnings per share (EPS) fell to Rs 0.68, reflecting lower earnings for shareholders. Overall, while Sheela Foam has shown some operational improvements, the financial results indicate significant challenges in maintaining profitability and a concerning reliance on non-operating income.

Furthermore, the company saw an adjustment in its evaluation over the past three months, reflecting the complexities of its financial performance.