India’s home-grown sleep and comfort solutions powerhouse, Duroflex, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI). Duroflex IPO comprises a fresh issue of INR 183 crore and an offer for sale of 2,25,64,569 equity shares.
Known for redefining how Indians sleep, Duroflex — a third-generation family-run enterprise — stands today as one of the top three mattress and comfort solution brands in the country, with a business that stretches across foam, mattresses, sofas, recliners, beds, pillows, and furnishings.
Duroflex IPO: Company Overview
Headquartered in Alappuzha, Kerala, Duroflex operates a vertically integrated manufacturing and retail ecosystem — controlling every stage from foam production to finished mattresses and furniture. The company markets its products under three brands:
- Duroflex (flagship brand – premium & orthopedic range)
- Sleepyhead (digital-first, youth-oriented)
- Perfect Rest (value segment)
As of 30 June 2025, Duroflex had:
- 7 manufacturing facilities across 3 states
- 19 warehouses including a 2.17 lakh sq. ft. mother warehouse in Hosur
- 73 COCO stores (company-owned, company-operated) across 31 cities
- 375 distributors and 5,576 trade stores, making it the second-largest general trade network in India’s sleep industry
The company’s omni-channel strategy — combining COCO stores, e-commerce platforms, general trade, and institutional sales — has become its growth engine, serving both direct consumers and large institutional clients like hotels, hospitals, and OEMs.
Duroflex IPO Snapshot
| Particulars | Details |
|---|---|
| Fresh Issue | INR 183.6 crore |
| Offer for Sale (OFS) | 2,25,64,569 shares |
| Face Value | INR 1 per share |
| Retail Quota | 10% |
| Employee Quota | Yes |
| Book Running Lead Managers | JM Financial, Motilal Oswal Investment Advisors |
| Prominent Investors | Lighthouse Funds, Norwest Venture Partners |
The fresh issue proceeds will primarily fund:
- New COCO store openings (capex)
- Lease and license fee payments for existing stores and Manufacturing Facility VII
- Marketing and brand promotion
- General corporate purposes
Proceeds from the OFS will go directly to the selling shareholders.
Duroflex IPO: Financial Performance
Duroflex’s financial trajectory reflects stable revenue growth and consistent profitability, despite a competitive and input-cost-sensitive market.
| Metrics | FY23 | FY24 | FY25 | Q1 FY26 |
|---|---|---|---|---|
| Revenue from Operations | 1,057.5 | 1,095.3 | 1,134.3 | 292.5 |
| EBITDA | 56.9 | 62.7 | 98.0 | 21.2 |
| PAT | (15.5) | 11.2 | 47.2 | 5.6 |
| EBITDA Margin (%) | 5.4 | 5.7 | 8.6 | 7.2 |
| PAT Margin (%) | (1.5) | 1.0 | 4.2 | 1.9 |
- Revenues grew at a 3.6% CAGR between FY23–FY25.
- Profitability held steady, with PAT margin stabilizing above 4%.
- Q1 FY26 performance (INR 297 crore revenue, INR 5.6 crore PAT) suggests annualized stability amid expanding retail presence.
- Moderate margins are reflective of continued investment in brand-building and digital infrastructure.
⚙️ Operations and Capacity
Duroflex’s vertically integrated production model is one of the few in India’s mattress industry.
The company manufactures its own PU foam, latex, and spring components, supplying not only its internal needs but also selling branded foam to external manufacturers — including competitors.
Manufacturing snapshot (FY25):
- Foam: 36,036 MT capacity, 78% utilization
- Foam Sheets: 24,932 MT capacity, 62% utilization
- Mattresses: 1.2 million units capacity, 69% utilization
- Sofas: 83,000 units capacity, 77% utilization
High utilization levels and spare capacity indicate operational maturity and headroom for scaling up without major capex.
🛋️ Duroflex IPO: Channel Expansion Strategy
Duroflex’s omnichannel approach remains a cornerstone of its growth:
- COCO Stores: Average 1,700 sq. ft., data-driven expansion targeting high-demand clusters based on e-commerce heatmaps and regional demographics.
- General Trade: Proprietary digital order platform connecting 375 distributors for real-time inventory and secondary sales visibility.
- E-commerce: Growing share through own websites and major marketplaces.
- Institutional & OEM: Increasing exports and B2B orders from hospitality, healthcare, and furniture brands.
The company also plans to introduce larger-format stores to display its growing furniture and smart product portfolio, including adjustable beds and motorized recliners.
Verdict
From a market perspective, Duroflex looks a mature, operationally strong consumer brand entering the public domain. Unlike tech-heavy start-ups, Duroflex represents a manufacturing-backed, steady-margin consumer business — one that blends legacy with digital transformation.
Its balanced financials, high asset productivity, and measured retail rollout could make it appealing to investors seeking stable mid-cap exposure in India’s expanding home and lifestyle sector.
While valuation benchmarks will depend on peer comparisons with Sheela Foam (Sleepwell), Wakefit, and The Sleep Company, Duroflex’s vertically integrated structure and multi-brand strategy offer a differentiated investment case.
In the Nine months of 2025 IPO market maintained a steady pace with 65 companies raising a substantial INR 80,900 crore. While activity remained strong, investor enthusiasm softened — average listing gains slipped to 10.9 %, well below last year’s 30 % average.
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