Better sleep, bigger spending: 2 stocks riding India’s Rs 30,000-crore mattress boom

The mattress category itself offers a strong growth runway. Grand View Research, a global market research and consulting company, estimates the Indian mattress market at US$2.94 billion in 2025, with the market projected to reach US$5.94 billion by 2033, implying a 9.3% CAGR between 2026 and 2033.

Importantly, the opportunity is not simply about selling more mattresses; it is about premiumisation and formalisation. The organised segment accounts for roughly 40% of the market and is estimated to grow at about 17% CAGR, according to the Indian Sleep Products Federation, citing Mordor Intelligence. The biggest potential lies in premium, orthopaedic, memory-foam, latex and hybrid mattresses.

The opportunity is attracting companies with different business models and competitive strengths. Wakefit Innovations and Sheela Foam are notable names in the space.

#1 Wakefit: From Mattress Disruptor to a Broader Home-Furnishing Play

Wakefit Innovations Limited, formerly Wakefit Innovations Pvt. Ltd., operates its mattress business as a core part of its sleep and home-solutions portfolio. The company has also expanded beyond mattresses into beds, sofas, wardrobes, study tables, bookshelves, TV units, bedside tables, coffee tables, shoe racks and other furniture, covering bedroom, living-room, dining and workspace requirements. Its business also includes home-interior solutions.

Moving back to the mattress segment, its current mattress range spans memory foam, orthopaedic, latex, spring and grid mattresses, covering different firmness levels, sleeping preferences and price points. Wakefit also offers newer, technology-led products, including those with more than 3,300 air channels for airflow. The company provides a 100-day trial across its mattress range.

Wakefit’s Store Expansion Is an Opportunity and an Execution Test

Wakefit Innovations is rapidly scaling its offline presence as it aims to strengthen its position across mattresses, furniture and furnishings. As of 30 June 2026, the company had 165 active company-owned, company-operated (COCO) stores across 100 cities in 22 states and two Union Territories. The company added 27 COCO stores in Q1FY27 alone, compared with 42 additions in FY26.

The company plans to add nearly 80 COCO stores during FY27. Wakefit is also investing heavily behind this strategy. Its FY27 capital expenditure guidance stands at ₹100–120 crore, with around 80% set aside for retail expansion, particularly its jumbo-store format. The remaining 20% is planned for manufacturing automation and other business upgrades.

Wakefit also operates a much broader multi-brand outlet (MBO) network of 2,250 stores across 701 cities, giving it additional reach beyond its own stores.

The physical-store strategy addresses one of the biggest limitations of online mattress selling: consumers often want to lie on a mattress before making a relatively high-value purchase. Offline stores can therefore improve product discovery and potentially support furniture cross-selling.

But store count alone is not an investment metric. The key indicators are sales per store, mature-store growth, store payback period, store-level contribution margin and the proportion of new stores that reach target productivity. A rapidly expanding network can destroy shareholder value if sales density falls or capital remains tied up in underperforming locations.

Wakefit Q1 FY27: Strong Growth, but the Quality of That Growth Matters

Wakefit Innovations started FY27 with a strong improvement in its top line. Revenue from operations stood at ₹404.91 crore in Q1 FY27, compared with ₹347.12 crore in Q1 FY26, translating into a 16.6% year-on-year increase. On a sequential basis, revenue surged 17.84% from ₹343.60 crore in Q4 FY26.

Of the given revenue, mattresses contributed 65.9% of the company’s sales mix, followed by furniture at 27.8% and furnishings at 6.3%. The mattress segment also saw 27.3% year-on-year growth in Q1 FY27, higher than the company’s overall 16.6% growth in revenue from operations.

Retail channel revenue grew 20.5% year-on-year in Q1FY27. Own channels, which include more than just physical stores, accounted for 72.3% of total sales and grew 20.5% YoY.

Profit after tax (PAT) stood at ₹23.38 crore, up 19.2% YoY from ₹19.62 crore, with the reported PAT margin at 5.8%.

However, sequentially, PAT fell 81% from the ₹121.75 crore figure in Q4 FY26. This fall was due to a one-time deferred tax credit of ₹98.07 crore in Q4 FY26. In Q1 FY27, this benefit was absent, and the company instead reported a deferred tax expense of ₹7.30 crore, along with current tax.

The June FY27 numbers are encouraging, particularly because operating profitability improved faster than revenue, pointing to better operating leverage and margin expansion. If Wakefit can sustain this improvement while continuing to grow revenue, earnings could grow faster than the top line over time. However, readers should assess whether the improvement in operating profitability is sustainable, rather than assuming that one quarter establishes a long-term trend. The key factors to watch are the durability of margins, cost efficiency, product mix and the company’s ability to maintain profitability as it continues to invest in stores and growth.

Wakefit Innovations Limited 5-Year Financial Performance

Particulars	FY22	FY23	FY24	FY25	FY26
Sales (₹ in crores)	633	813	986	1,274	1,489
Operating Profit (₹ in crores)	(79)	(85)	36	60	186
Net Profit (₹ in crores)	(146)	(15)	(35)	91	189
EPS (₹)	(105.36)	(144.09)	(14.55)	(33.26)	5.73

On the price chart, Wakefit Innovations, which debuted on the stock exchanges in December last year, has declined 20.45% since listing. However, over the last month, the share price surged by around 24%.

On 3 September 2026, Nomura initiated coverage with a Buy rating and a ₹200 target price, representing roughly 31% upside from the reference price of ₹153. The bullish view rests on Wakefit’s 30–35% online mattress market share, rising contribution from furniture, and its vertically integrated model, which can support cost control and margin improvement.

#2 Sheela Foam: The Incumbent With Brands, Scale and Integration

Sheela Foam has built its mattress business around Sleepwell and Kurlon. Its brands have a 30% share of India’s mattress market and reach customers through more than 20,000 retail touchpoints across India and beyond. Sleepwell is the group’s most recognised mattress brand, with an 18% share of the Indian mattress market and more than 5,000 exclusive brand outlets across India.

Kurlon, which is particularly strong in southern and eastern India, has an 11% share of the Indian mattress market and more than 5,500 retail touchpoints, including over 500 exclusive outlets.

Sheela Foam also operates across the mattress value chain through its foam manufacturing capabilities. The company produces 1,00,000 tonnes of more than 100 types of foam annually across 10 foaming plants spanning three continents, supplying materials for residential and specialised mattress applications.

Internationally, Sheela Foam has operations across Asia, Australia and Europe. Its global manufacturing network spans 18+ locations across three continents.

Sheela Foam’s Real Moat May Be Its Integrated Supply and Distribution Network

Sheela Foam’s operating model covers designing, manufacturing, moving and retailing products, with more than 12 plants and over 250 distribution points across India. 72% of its distributors receive their orders within 24 hours.

A dense distribution system can raise product availability, lower replenishment times and make it harder for smaller regional competitors to match the firm’s reach. The company’s more than 20,000 retail touchpoints add another level of distribution scale.

However, scale does not automatically translate into superior returns. What is more important is whether this large asset and distribution base generates sufficiently high incremental returns. That is where Sheela Foam’s return on capital employed (ROCE) becomes important.

Sheela Foam Q1 FY27: Strong Revenue, but Profitability Needs Closer Examination

Sheela Foam Limited delivered a strong Q1 FY27, with consolidated revenue from operations rising 25.6% year-on-year to ₹1,031.94 crore, compared with ₹821.41 crore in Q1 FY26. However, revenue was 1.7% lower quarter-on-quarter than ₹1,050.06 crore in Q4 FY26.

The Indian business, which includes Sleepwell and Kurlon, reported revenue from operations of ₹769.21 crore in Q1 FY27, up from ₹634.6 crore in Q1 FY26. That represents 21.02% YoY growth.

For the core mattress business, Sheela Foam reported 6% YoY volume growth and 15% value growth, indicating that revenue growth was supported not only by higher volumes but also by better realisation and product mix. The company’s foam business performed even better, with volume growth of 4% and value growth of 26%.

The gap between volume growth and value growth is potentially a positive sign for premiumisation. But investors need to determine how much of that value growth is sustainable pricing/mix improvement and how much reflects temporary changes in product mix or input-cost pass-through.

Consolidated PAT stood at ₹62.34 crore, versus ₹91.77 crore in Q4 FY26 and ₹6.55 crore in Q1 FY26. The consolidated net profit margin was 6.0%, compared with 0.8% in Q1 FY26 and 8.7% in Q4 FY26. The sequential loss occurred because the previous quarter benefited from a one-off deferred tax asset recognition at its subsidiary, Furlenco.

Sheela Foam Limited 5-Year Financial Performance

Particulars	FY22	FY23	FY24	FY25	FY26
Sales (₹ in crores)	2,866	2,873	2,982	3,439	3,821
Operating Profit (₹ in crores)	315	298	304	252	395
Net Profit (₹ in crores)	219	201	184	90	161
EPS (₹)	22.27	20.39	16.78	8.22	14.62

On the price chart, Sheela Foam performed well. Over the past six months, its stock delivered a 32.3% return, while its year-to-date return stood at 17.4%.

While there is no major equity brokerage coverage on Sheela Foam, CRISIL Ratings revised the long-term bank-facility outlook of the company to Positive while reaffirming its AA- rating in April 2026, citing improving business and financial risk profiles.

Wakefit Innovations vs Sheela Foam

India’s Sleep Economy: 2 Mattress Stocks to Watch

Metric	Wakefit Innovations	Sheela Foam
Q1FY27 revenue	₹404.91 crore	₹1,031.94 crore
Revenue growth	16.6% YoY	25.6% YoY
Q1FY27 PAT	₹23.38 crore	₹62.34 crore
PAT margin	5.8%	6.0%
Key strength	Fast-growing mattress and furniture play	Scale, brands and distribution
Market reach	165 COCO stores; 2,250 MBO stores	20,000+ retail touchpoints
Core opportunity	Offline expansion and premium mattresses	Premiumisation and wider distribution

Now, let’s take a look at the valuations:

Company	P/E	Dividend Yield (%)	ROCE (%)
Wakefit Innovations	26.15	0.00	10.90
Sheela Foam	37.10	0.14	6.11
Stanley Lifestyles	112.08	0.00	6.43
Nilkamal	22.73	0.98	10.61

The comparison numbers suggest that valuation alone does not determine the attractiveness of these stocks; investors need to weigh earnings quality against capital efficiency. Wakefit appears relatively better positioned on the growth-to-valuation trade-off, supported by improving profitability and strong momentum in its core mattress business. Sheela Foam offers greater scale and a broader operating base, but its lower capital efficiency raises questions about how effectively growth translates into shareholder returns. The wider peer set also shows that investors are willing to assign very high valuations to consumer-focused furniture and lifestyle businesses, making execution crucial.

The Uncomfortable Side of India’s Mattress Growth Story

Beneath this promising growth story of the sleep economy, the mattress industry faces several structural challenges that could limit margins, slow adoption and test the sustainability of future growth.

• Raw-material price volatility: Foam, chemicals, fabrics, springs and other inputs account for a substantial portion of mattress manufacturing costs. CRISIL notes that raw-material procurement can account for 70–75% of operating income for a foam manufacturer, meaning even modest changes in input prices can materially affect operating margins.
• Petrochemical-linked materials: Foam mattresses, particularly polyurethane and memory-foam products, depend on chemical inputs whose prices can be influenced by crude oil, global supply conditions, currency movements and disruptions in chemical production. This creates an input-cost risk that mattress manufacturers cannot always pass on immediately to customers.
• Logistics barrier: Unlike small consumer products, mattresses occupy considerable physical space. Logistics, including transportation, warehousing and last-mile delivery therefore add meaningful costs. Vacuum compression has helped online brands reduce shipping volumes for some foam mattresses, but not every mattress can be compressed in the same way, particularly certain spring, coir and hybrid products.
• Restricted purchase: A mattress is not bought as frequently as apparel, personal-care products or many other consumer categories. This naturally limits repeat-purchase frequency. Companies therefore need to continually acquire new customers or expand into adjacent categories such as pillows, protectors, bed linen and other sleep products to increase customer lifetime value.
• High price: Premium mattresses remain relatively expensive for a large part of the price-conscious population in India. This is particularly relevant in smaller cities and rural markets, where household budgets can make a ₹20,000–₹50,000 mattress a significant discretionary purchase. Consequently, the industry’s premiumisation opportunity is unlikely to develop uniformly across India.

The Sleep Boom Is Real. But Are the Returns?

For readers, the next phase of India’s sleep-economy story will be less about headline market growth and more about whether companies can convert that growth into durable earnings and stronger returns on capital. Wakefit’s faster mattress growth, expanding store network and improving profitability make store productivity, margins and cash generation the key variables to watch.

For Sheela Foam, volume growth, premiumisation, integration benefits and ROCE improvement will determine whether its scale translates into better shareholder returns. Across both companies, investors should track raw-material costs, pricing power, working-capital discipline and the pace at which offline expansion creates incremental sales. The opportunity is sizeable, but valuations leave little room for weak execution. Ultimately, the winners will be those that combine market share gains with sustainable margins and efficient capital deployment.

It may be a good idea to add these stocks to your watchlist and keep track to see how they perform in time to come.

Disclaimer:

Note: We have relied on data from www.Screener.in throughout this article. Only in cases where the data was not available, have we used an alternate, but widely used and accepted source of information.

The purpose of this article is only to share interesting charts, data points and thought-provoking opinions. It is NOT a recommendation. If you wish to consider an investment, you are strongly advised to consult your advisor. This article is strictly for educative purposes only.

Rishabh Sinha is a seasoned financial content creator with over 10 years of experience in BFSI domain. His portfolio spans over 20 of India’s most trusted financial brands. Rishabh brings depth, structure, and a reader-first approach to every piece he crafts.

Disclosure: The writer and his dependents do not hold the stocks discussed in this article.

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