Furlenco’s Remarkable Revenue Growth Following Sheela Foam Investment
Furlenco has seen significant revenue growth since Sheela Foam acquired a 35% share in the furniture rental company. Over two years, the company’s revenue from operations soared 2.6 times, moving from Rs 140 crore in FY24 to Rs 370 crore in FY26. Notably, Furlenco has maintained profitability, reporting a profit of approximately Rs 60 crore in FY26.
According to the consolidated financial statements examined by Startup Superb, Furlenco’s revenue from operations rose to Rs 370.43 crore in FY26 from Rs 228.74 crore in FY25. This Bengaluru-based company offers furniture and home decor rentals along with relocation services.
Revenue Breakdown
The revenue from furniture rental services constituted 92% of the operational income, which increased by 64% to Rs 341.07 crore. Additionally, the sale of products grew by 38% to Rs 29.36 crore during the same timeframe. Other income for Furlenco was recorded at Rs 4.99 crore, bringing the total income for FY26 to Rs 375.42 crore, up from Rs 240.05 crore in FY25.
Cost Analysis
On the cost side, depreciation and finance costs escalated sharply by 57.5% and 75.6%, respectively. Employee expenses rose by 17.1% to reach Rs 36.18 crore, while material costs nearly tripled, reaching Rs 27.01 crore for the previous fiscal year that concluded in March 2026. The company did not provide a comprehensive breakdown of other expenses, which increased by 34.4% to Rs 181.04 crore in FY26, up from Rs 134.7 crore in FY25. These expenses are classified under miscellaneous costs.
Overall Financial Performance
Overall, Furlenco’s total expenses surged by 45.1%, amounting to Rs 343.85 crore in FY26, compared to Rs 236.94 crore in FY25. As revenue growth outstripped the increase in expenses, Furlenco’s profit leaped by an impressive 19.1 times, rising to Rs 59.52 crore in FY26 from Rs 3.11 crore in FY25. The company’s EBITDA also nearly doubled to Rs 129.5 crore, resulting in an EBITDA margin of 35.01%. Additionally, return on capital employed (ROCE) showed improvement, increasing to 13.17% from 5.37%.
Unit Economics and Asset Growth
On a per-unit basis, Furlenco spent Rs 0.93 to generate each rupee of operating revenue, an improvement from Rs 1.03 in FY25. Furthermore, the company’s cash and bank balances more than doubled to Rs 75 crore from Rs 32 crore, with total current assets increasing by 67.9% to Rs 178 crore in FY26.
Market Competition
In the competitive landscape, Furlenco faces rivalry from Rentomojo in the furniture and home appliance rental sector. Rentomojo recently received observations from SEBI for its planned IPO, which includes a fresh issue worth Rs 150 crore and an offer for the sale of up to 28.4 million shares. In FY25, Rentomojo reported revenue of Rs 265.96 crore and a profit of Rs 43.11 crore.