WAKEFIT Q3 FY26 earnings call.
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Revenue
₹423 Cr
verification pending
Revenue YoY
9.4%
reported change
EBITDA
₹59.1 Cr
latest reported figure
Source
bse pending
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Wakefit Innovations reported its maiden Q3 FY26 results post-IPO with revenue of Rs 423 crore (up 9.4% YoY) and EBITDA of Rs 59.1 crore (up 196% YoY), driven by operating leverage from improved furniture facility utilization. Operating EBITDA margin expanded sharply to 9.9% from 2.1% year-ago. The 9.4% revenue growth was impacted by Diwali demand shifting from October to September 2025 (GST reform-driven), though B2C sales in Sep-Dec recovered to 14% growth. Mattresses contributed ~61.3% of 9M revenue while furniture grew 27.5% YoY. The company operates 137 COCO stores (76 cities) and ~700 MBOs (453 cities), with own channels at 64.7% of 9M sales. Management guided to mid-to-high teen revenue growth for FY26 with continued operating EBITDA margin improvement. Near-term risks include GST-driven wallet shift away from mattresses, competitive intensity requiring higher A&P spend (guidance of 8-9% of sales), and furniture segment profitability still being built out.
Colored figures show movement against the previous available record.
Guidance to track
- Management expects to close FY26 with mid-to-high teen revenue growth based on Q4 trends, with Q4 seeing demand return to normalcy post-Diwali shift.
- Given competitive intensity in the mattress category, management anticipates ramping up advertising and promotion spend back to historical average of 8-9% of net revenue in the medium term from current mid-5% level.
- Starting April 1st (FY27), the company plans to open stores at a pace 50% higher than Q3 FY26's rate of ~11 net additions per quarter, focusing on COCO stores in high-potential markets.
- Most non-linear operating leverage will come from furniture category via three levers: catalog completion, manufacturing efficiency as volumes scale, and improved middle-mile truck utilization.
Risks flagged
- New GST reforms covered discretionary product categories, shifting consumer wallet toward furniture and away from mattresses in Q3. While management expects normalization, the impact duration remains uncertain.
- Analyst Ritesh raised concerns about competitive intensity; management acknowledged it and indicated plans to increase A&P spend to historical 8-9% levels, which could pressure near-term margins.
- While bed frames, wardrobes, and sofas are partially positive, long-tail subcategories are still completing catalogs and investments. Furniture segment EBIT positivity at company level may be delayed.
- Management explicitly stated they cannot calculate customer acquisition costs due to multi-channel complexity (marketplaces, quickcommerce, MBOs, online, offline all having separate data non-sharing ecosystems). This limits marketing efficiency measurement.
Key quotes
- Our revenue registered a YoY growth of 9.4% at Rs 4,230 million and reported EBITDA almost doubled to Rs 592 million due to operating leverage kicking in including the improved capacity utilization particularly at our furniture facility.
- Operating EBITDA for the quarter stood at Rs 416 million which had a margin of 9.9% while the last year same quarter stood at Rs 79.7 million at 2.1% margin. This performance was delivered despite Diwali related demand advancing to September 2025 compared to October 2024.
- We are unable to provide a very tight controlled guidance. However, the revenue growth remaining at a healthy number that we outlined earlier and margin improvements coming from operating leverage those are in our control. But we foresee that given the increase in competitive intensity in mattress, we will go back to increasing our advertising and promotion expenses to historical average of somewhere around 8% or so given how the industry has shaped up.
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