Financial Performance Highlights

Quarterly Performance (Q1 FY27):

  • Revenue from Operations: INR 4,049.1 million, representing 16.6% YoY growth from INR 3,471.2 million in Q1 FY26
  • Gross Profit: INR 2,310.9 million (57.1% margin), compared to INR 1,936.2 million (55.8% margin) in Q1 FY26
  • Reported EBITDA (excluding Other Income): INR 564.0 million (13.9% margin), up 25.2% YoY from INR 450.4 million (13.0% margin)
  • Other Income: INR 156.2 million
  • Reported IndAS EBITDA (including Other Income): INR 720.2 million, up 36.5% YoY
  • Depreciation and amortization: INR 283.3 million
  • EBIT: INR 436.9 million (10.8% margin), up 61.3% YoY
  • Finance Cost: INR 73.9 million
  • Profit Before Tax (before exceptional items): INR 363.1 million (9.0% margin), up 85.1% YoY
  • Exceptional Items: INR 0.0 million
  • Profit Before Tax (after exceptional items): INR 363.1 million (9.0% margin)
  • Tax: INR 129.2 million (Current Tax: INR 56.2 million, Deferred Tax: INR 73.0 million)
  • Profit After Tax: INR 233.8 million (5.8% margin), up 19.2% YoY
  • PAT (Excluding Deferred Tax): INR 306.8 million (7.6% margin), up 56.4% YoY
  • Operating EBITDA: INR 368.3 million (9.1% margin), up 49.7% YoY

Annual Performance (FY26):

  • Revenue from Operations: INR 14,889.4 million
  • Operating EBITDA: INR 1,122.6 million (7.5% margin)
  • PBT after exceptional items: INR 911.0 million (6.1% margin)
  • PAT: INR 1,891.8 million (12.7% margin), including Deferred Tax Asset impact of INR 980.7 million

Operational Metrics and Business Highlights

Sales Mix (FY26):

  • Mattresses: 61.4% of revenue
  • Furniture: 29.3% of revenue
  • Furnishings: 9.3% of revenue

Retail Expansion:

  • Active COCO stores: 165 as of June 30, 2026 (added 27 stores during Q1 FY27)
  • MBO network: 2,250 stores across 701 cities
  • Retail channel growth: 20.5% in Q1 FY27
  • Repeat customers contributed 36.7% of revenue during the quarter

Manufacturing and Supply Chain:

  • Vertically-integrated operations with in-house manufacturing
  • Mother warehouse in Hosur (1.6 lakh sq. ft.)
  • 10 Inventory Holding Points (10,000 to 55,000 sq. ft.)
  • Multiple Points of Delivery (800 to 5,600 sq. ft.)

Management Commentary:

Chairman & CEO Ankit Garg noted strong Q1 performance with mattress business growing 27.3% YoY. The company experienced raw material price volatility particularly in Polyol and TDI due to Middle East supply disruptions, responding with calibrated pricing actions. The full impact of increased raw material costs will reflect in H1 FY27.

Capital Expenditure:

  • Planned FY27 capex: INR 1,000-1,200 million
  • Allocation: 80% toward retail expansion (particularly jumbo store format), 20% toward manufacturing automation and business upgrades

ESOP Expenses:

Total ESOP expenses for Q1 FY27 stood at INR 6.1 million

Marketing Investment:

Advertisement and marketing investments remained at 7.6% of Revenue from Operations

Tax Explanation:

The company recognized a deferred tax charge of INR 73.0 million during the quarter, compared to a deferred tax income of INR 980.7 million in the previous quarter. This represents a movement of INR 1,054 million attributable to normal-course reversal of timing differences and lower quantum of DTA unwind on carried-forward losses. This is a non-cash, accounting-driven movement.

Company Overview

Wakefit is described as the largest D2C player in the home & furnishing segment in India with a digital-first approach. The company has a diverse product portfolio including mattresses, furniture, and furnishings. The presentation highlights the company's omnichannel presence, vertically-integrated operations, and focus on product innovation.

Forward Outlook

The company aims to be "the most loved home solutions company in India" with strategic priorities including:

  • Expansion of COCO stores and website sales
  • Data-driven product category expansion
  • Increased brand salience and awareness
  • Technology enhancement for customer experience and operational efficiencies
  • Increasing customer lifetime value