Wakefit Q2 FY27: Profit Remains Flat at ₹16 Crore, Revenue Crosses ₹450 Crore

Wakefit Innovations reported revenue from operations of ₹452 crore in the second quarter of FY27, registering a 19.9% year-on-year increase from ₹376.9 crore in the corresponding quarter last year. However, the home and sleep solutions company’s net profit remained almost unchanged at ₹15.9 crore compared with ₹16 crore in Q2 FY26. The results highlight strong revenue growth alongside continued pressure from rising raw material costs and operating expenses.

The Bengaluru-based company attributed the challenging operating environment to higher prices of crude-linked raw materials, particularly Polyol and TDI, as well as geopolitical disruptions in West Asia affecting raw material availability and logistics. Despite these pressures, Wakefit recorded its highest-ever quarterly revenue, improved operating EBITDA and continued expanding its offline retail network.

Wakefit Q2 FY27 Financial Results

Wakefit’s financial performance reflected healthy growth in its core business during the September quarter. Revenue increased across the business, while higher expenses and deferred tax charges affected the reported bottom line.

The company’s key financial figures for Q2 FY27 are:

Financial Metric	Q2 FY27	Q2 FY26	YoY Change
Revenue from Operations	₹452 Cr	₹376.9 Cr	+19.9%
Total Income	₹468 Cr	₹386.5 Cr	+21.1%
Net Profit	₹15.9 Cr	₹16 Cr	-0.4%
Profit Before Tax	₹26.5 Cr	₹16 Cr	+66.3%
Operating EBITDA	₹30.5 Cr	₹24.2 Cr	+25.8%
Total Expenses	₹441.4 Cr	₹370.5 Cr	+19.2%

Source: Wakefit’s Q2 FY27 financial disclosures. Figures are rounded.

Revenue from operations increased 19.9% year-on-year to ₹452 crore, compared with ₹376.9 crore in Q2 FY26. On a sequential basis, revenue grew 11.6% from ₹404.9 crore in Q1 FY27.

Including other income of approximately ₹16 crore, Wakefit’s total income reached ₹468 crore during the quarter.

The revenue performance indicates continued demand for the company’s mattresses, furniture and home furnishing products.

Why Did Wakefit’s Profit Remain Flat?

Despite recording nearly 20% revenue growth, Wakefit’s net profit remained almost unchanged during the quarter.

The company reported a profit after tax (PAT) of ₹15.9 crore, compared with ₹16 crore in the year-ago period. On a quarter-on-quarter basis, net profit declined approximately 32% from ₹23.4 crore in Q1 FY27.

One of the major factors affecting the reported profit was the increase in tax expenses.

Wakefit recorded a profit before tax of ₹26.5 crore, representing 66.3% growth compared with approximately ₹16 crore in Q2 FY26.

However, its tax expense increased to approximately ₹10.7 crore, including a deferred tax charge of ₹6.4 crore.

The company explained that the deferred tax charge was primarily related to the reversal of timing differences associated with depreciation and provisions, alongside the partial unwinding of deferred tax assets arising from carried-forward losses.

Wakefit clarified that its reported profit does not fully reflect the underlying improvement in operating performance because of these deferred tax movements.

Excluding the deferred tax movements, the company said its quarterly profit after tax would have been approximately ₹22.3 crore, representing growth of around 39.9% year-on-year.

Rising Raw Material Prices Put Pressure on Margins

Higher raw material costs remained an important challenge for Wakefit during Q2 FY27.

The company highlighted elevated prices of crude-linked inputs, particularly Polyol and TDI, which are important materials used in polyurethane foam manufacturing.

These materials are relevant to the mattress industry, making their price movements an important factor affecting production costs.

Geopolitical disruptions in West Asia also affected raw material availability and logistics across the industry.

Wakefit cofounder and executive director Chaitanya Ramalingegowda said the company had implemented calibrated price increases while remaining mindful of customer affordability.

During its earnings discussion, management indicated that average price increases had reached approximately 10% to 11% since the beginning of the raw material cost pressures.

The company is attempting to recover higher input costs through pricing adjustments while protecting its absolute profitability.

However, its gross profit margin declined to 53.9% in Q2 FY27 from 57.7% in the corresponding quarter last year.

This indicates that higher selling prices have not completely prevented pressure on margins.

Operating EBITDA Grows 25.8%

While reported net profit remained flat, Wakefit delivered stronger growth in operating profitability.

Operating EBITDA increased 25.8% year-on-year to ₹30.5 crore from ₹24.2 crore in Q2 FY26.

Its operating EBITDA margin improved to 6.7% from 6.4% during the same period.

Reported EBITDA, excluding other income, increased 21.5% to approximately ₹50.2 crore, compared with ₹41.3 crore in the year-ago quarter. Its margin improved slightly to 11.1% from 11%.

The improvement in operating EBITDA indicates that Wakefit continued managing its operating costs despite inflationary pressure on raw materials.

The company also highlighted operating leverage and internal efficiency improvements as factors supporting its profitability.

Wakefit Opens 41 New Stores in Q2

Wakefit continued expanding its offline retail presence during the quarter, opening 41 new company-owned company-operated (COCO) stores.

The expansion took its total company-owned store count to 205 as of September 30, 2026, across 137 cities.

The company also had a presence in approximately 2,589 multi-brand outlets across 787 towns and cities.

Its sales distribution remained heavily dependent on its own channels, which contributed 70% of total sales during Q2 FY27. External channels accounted for the remaining 30%.

Retail channel revenue also recorded approximately 24% year-on-year growth during the quarter.

Wakefit’s expanding offline presence is part of its omnichannel strategy, allowing customers to experience mattresses and furniture in physical stores before making purchases.

The company believes this approach can help strengthen customer relationships and improve its reach beyond major urban markets.

Wakefit Plans ₹100-120 Crore Capital Expenditure in FY27

Wakefit has maintained its capital expenditure guidance of ₹100 crore to ₹120 crore for FY27.

Approximately 80% of the planned investment is expected to go towards retail expansion, particularly the rollout of its larger jumbo store format.

The remaining investment will support manufacturing, automation and other operational improvements.

During the first half of FY27, the company had already invested approximately ₹60-65 crore in capital expenditure.

Of this amount, around ₹25-30 crore was allocated towards company-owned retail stores.

Wakefit is also developing its first jumbo-format store in Bengaluru. Construction is progressing, and the company is targeting its launch in Q2 FY28.

The larger store format is expected to support its strategy of building a broader home and sleep solutions destination for consumers.

Mattresses Remain Wakefit’s Largest Revenue Contributor

Mattresses continued to account for the largest share of Wakefit’s business during Q2 FY27.

According to the company’s investor presentation, the quarterly sales mix was distributed as follows:

Product Category	Share of Revenue
Mattresses	61.8%
Furniture	30.1%
Furnishings	8.1%

Mattresses remained the company’s primary revenue driver, while furniture contributed nearly one-third of sales.

Wakefit is attempting to expand beyond its original mattress business by strengthening its furniture, furnishings and home solutions portfolio.

The company believes its omnichannel network and brand recognition can help it capture a larger share of India’s home and furnishing market.

Management also indicated that mattresses and furniture delivered healthy double-digit growth during the first half of FY27, while furnishings remained relatively softer.

Wakefit’s H1 FY27 Performance

For the first six months of FY27, Wakefit reported revenue from operations of ₹857 crore, representing 18.4% year-on-year growth compared with ₹724 crore in H1 FY26.

Its reported net profit increased 10.4% to ₹39.3 crore from ₹35.6 crore in the corresponding period last year.

Operating EBITDA reached ₹67.3 crore, registering 39% growth compared with ₹48.4 crore in the first half of the previous financial year.

The operating EBITDA margin also improved to 7.9% from 6.7%.

These figures indicate that Wakefit maintained healthy business growth during the first half despite rising input costs and investments in retail expansion.

The Bigger Picture

Wakefit’s Q2 FY27 results highlight the challenges facing India’s direct-to-consumer home and furnishing companies as they balance revenue growth with profitability.

The company is benefiting from increasing demand for mattresses, furniture and home products, supported by its online platform and expanding offline retail network. However, higher commodity prices, logistics disruptions and operating expenses continue to influence its margins.

Its decision to invest heavily in retail expansion also reflects a broader shift among online-first consumer brands towards physical stores. By allowing customers to experience products before purchasing, Wakefit is attempting to build a stronger omnichannel business.

The company’s performance also highlights an important distinction between reported net profit and underlying operating profitability. Although its reported PAT remained flat, operating EBITDA improved, suggesting that the core business continued to expand.

Looking Ahead

Wakefit’s immediate priorities include expanding its retail footprint, improving manufacturing efficiency and managing raw material cost fluctuations. The company plans to invest ₹100-120 crore in FY27, with most of the capital directed towards new stores and its jumbo retail format. Its first jumbo store in Bengaluru is targeted for Q2 FY28, potentially adding another growth channel to its business.

The company’s ability to maintain revenue growth while protecting margins will be important in the coming quarters. Rising commodity prices remain a risk, but improving operating EBITDA, expanding retail distribution and growing demand across mattresses and furniture could support its longer-term ambitions in India’s home solutions market.