Wakefit Innovations Limited announced its unaudited financial results for the quarter ended June 30, 2026 (Q1FY27) through a press release filed under SEBI Listing Regulations Regulation 30.

Financial Performance Highlights (INR millions)

Revenue from Operations: ₹4,049.1M in Q1FY27 vs ₹3,471.2M in Q1FY26, representing 16.6% YoY growth. Full-year FY26 revenue was ₹14,889.4M.

EBITDA Performance:

  • Reported EBITDA (excluding Other Income): ₹564.0M (13.9% margin) vs ₹450.4M (13.0% margin) in Q1FY26, up 25.2% YoY
  • Reported IndAS EBITDA (including Other Income): ₹720.2M (17.8% margin) vs ₹527.6M (15.2% margin) in Q1FY26, up 36.5% YoY
  • Operating EBITDA (before Ind AS116 adjustments, ESOP charges, and non-operating items): ₹368.3M (9.1% margin) vs ₹246.0M (7.1% margin) in Q1FY26, up 49.7% YoY

Profitability:

  • Profit Before Tax: ₹363.1M (9.0% margin) vs ₹196.2M (5.7% margin) in Q1FY26, up 85.1% YoY
  • Profit After Tax: ₹233.8M (5.8% margin) vs ₹196.2M (5.7% margin) in Q1FY26, up 19.2% YoY
  • Full-year FY26 PAT was ₹1,891.8M (12.7% margin)

Tax Impact: The company recognized a deferred tax charge of ₹73.0M in Q1FY27, primarily due to reversal of timing differences (depreciation and provisions) and partial unwinding of deferred tax assets recognized on carried-forward losses. This compares with a deferred tax income of ₹980.7M in Q4FY26 which included a one-time higher recognition of DTA. Excluding deferred tax movements, PAT for the quarter was ₹306.8M (7.6% of Operating Revenue), up 0.7% QoQ and 1.9% YoY.

Operational Highlights

Sales Mix by Category (Q1FY27): Mattresses (65.9%), Furniture (27.8%), and Furnishings (6.3%)

Sales Mix by Channel (Q1FY27): Own Channels (72.3%) and External (27.7%)

  • Own Channels revenue grew 20.5% YoY
  • External channel revenue grew 7.6% YoY
  • Retail Channel growth: 20.5% YoY
  • Repeat customers contributed 36.7% of revenue during the quarter

Store Expansion:

  • 165 active COCO stores as of June 30, 2026
  • Added 27 new stores during Q1FY27
  • MBO network expanded to 2,250 stores across 701 cities

Gross Profit: ₹2,310.9M (57.1% margin) in Q1FY27 vs ₹1,936.2M (55.8% margin) in Q1FY26. The margin improvement was driven by price hikes implemented to offset increased Polyol and TDI prices following supply disruptions caused by the Middle East conflict.

Expenses:

  • Advertisement and marketing investments: 7.6% of Revenue from Operations
  • Total ESOP expenses: ₹6.1M

Management Commentary

Ankit Garg, Chairman, CEO and Executive Director highlighted strong Q1 performance with 16.6% YoY revenue growth and EBITDA margin improvement to 13.9%. Mattress business grew 27.3% YoY. The company sees significant opportunities for cross-selling across mattresses, furniture and furnishings as offline footprint expands.

Chaitanya Ramalingegowda, Executive Director noted significant raw material price volatility due to Middle East situation, particularly affecting Polyol and TDI inputs. The company responded with calibrated pricing actions. The full impact of increased raw material costs will reflect in H1FY27.

Guidance and Outlook

  • Planned FY27 capex: ₹1,000-1,200M
  • 80% allocated towards retail expansion (jumbo store format)
  • 20% towards manufacturing automation and business upgrades
  • Target to add nearly 80 COCO stores during FY27
  • Expect furniture and furnishing contribution to increase meaningfully over next 3-4 years

Company Background

Wakefit Innovations Limited, headquartered in Bengaluru and incorporated in 2016, is India's largest D2C home and furnishings company by revenue in Fiscal 2024. The company operates 5 manufacturing locations across Karnataka, Tamil Nadu and Haryana with omnichannel presence including 165 COCO stores across 100 cities and 2,250 MBO stores across 701 cities.