Wakefit Innovations reported a strong start to FY27, posting a 19% year-on-year increase in net profit to ₹23.4 crore for the quarter ended June 2026, while its operating revenue crossed the ₹400 crore mark for the first time in a first quarter. The home and sleep solutions company continued to benefit from robust demand across its mattress and furniture businesses, improving operating margins, and rapid expansion of its offline retail network. The results reinforce Wakefit’s profitable growth strategy as it scales its omnichannel presence following its public market debut.
Revenue from operations rose 16.6% year-on-year to ₹404.9 crore, up from ₹347.1 crore in the corresponding quarter last year. Strong sales growth, better pricing, and improved operating efficiency helped the company expand profitability despite higher input costs linked to global supply chain disruptions. Operating EBITDA climbed nearly 50% year-on-year, reflecting continued margin improvement.
Wakefit Delivers Strong Q1 FY27 Performance
For the April–June quarter, the company reported:
- Revenue from operations: ₹404.9 crore (up 16.6% YoY)
- Net profit: ₹23.4 crore (up 19% YoY)
- Operating EBITDA: ₹36.8 crore (up nearly 50% YoY)
- Operating EBITDA margin: 9.1%, compared with 7.1% a year earlier.
Q1 FY27 Financial Snapshot
| Metric | Q1 FY27 | YoY Change |
|---|---|---|
| Revenue from Operations | ₹404.9 crore | +16.6% |
| Net Profit | ₹23.4 crore | +19% |
| Operating EBITDA | ₹36.8 crore | +49.7% |
| Operating EBITDA Margin | 9.1% | +200 basis points |
Mattresses Continue to Drive Growth
Mattresses remained Wakefit’s largest business segment during the quarter.
Revenue mix included:
- Mattresses: Approximately 66% of revenue.
- Furniture and furnishings: Around 34% of revenue.
The company also benefited from healthy growth across its own sales channels, supported by an expanding retail footprint and higher customer engagement.
Retail Expansion Accelerates
Wakefit continued investing aggressively in offline retail to complement its direct-to-consumer business.
During the quarter, the company:
- Added 27 new company-owned, company-operated (COCO) stores.
- Increased its COCO store count to 165.
- Expanded its managed business operator (MBO) network to 2,250 stores across 701 cities.
Management reiterated plans to add around 80 COCO stores during FY27, with nearly 80% of the company’s planned ₹100–120 crore capital expenditure earmarked for retail expansion, particularly larger-format stores. The remaining investment will support manufacturing automation and operational upgrades.
Operational Highlights
| Area | Q1 FY27 Update |
|---|---|
| New COCO Stores Added | 27 |
| Total COCO Stores | 165 |
| MBO Network | 2,250 stores |
| Cities Covered | 701 |
| FY27 Planned Capex | ₹100–120 crore |
Margins Improve Despite Cost Pressures
Wakefit managed to improve profitability even as raw material prices remained volatile.
According to the company:
- Gross margins improved due to calibrated price increases.
- Advertising expenditure remained stable as a percentage of revenue.
- Better operating leverage supported EBITDA expansion.
- Deferred tax expenses affected reported earnings compared with the previous quarter, which had benefited from a one-time tax adjustment.
The results indicate that the company’s pricing strategy and scale benefits are helping offset higher input costs.
Outlook
Wakefit’s first-quarter performance highlights continued momentum in both revenue growth and profitability as the company strengthens its omnichannel retail strategy. Crossing ₹400 crore in quarterly revenue while expanding margins demonstrates improving operational efficiency and growing demand across its mattress and furniture portfolio. The aggressive retail expansion, combined with investments in automation, positions the company to deepen its presence in India’s organized home and sleep solutions market.
Looking ahead, management’s focus will remain on executing its planned store rollout, maintaining healthy margins amid raw material volatility, and scaling both online and offline channels. If consumer demand remains resilient and retail expansion progresses as planned, Wakefit appears well positioned to sustain profitable growth through FY27.
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