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Wakefit’s consolidated profit after tax (PAT) skyrocketed to ₹121.8 Cr against a loss of ₹26.2 Cr in the year-ago period

Operating revenue grew by 14% to ₹343.6 Cr from ₹302.6 Cr in the year-ago quarter

Important to highlight that the company’s bottom line was aided by an ₹98.1 Cr tax credit it received during the quarter under review

Mattress brand Wakefit’s consolidated profit after tax (PAT) skyrocketed to ₹121.8 Cr against a loss of ₹26.2 Cr in the year-ago period. PAT surged 282% from ₹31.9 Cr in the previous quarter.

Operating revenue, however, grew by 14% to ₹343.6 Cr from ₹302.6 Cr in the year-ago quarter. The company’s top line plunged 19% from ₹421.3 Cr in the previous quarter.

Including other income of ₹17.3 Cr, total income for the quarter stood at ₹361 Cr. Meanwhile, expenses remained flat at ₹337.5 Cr.

Important to highlight that the company’s bottom line was aided by an ₹98.1 Cr tax credit it received during the quarter under review. Minus the tax credit, Wakefit’s profit for the quarter stood at ₹23.7 Cr.

Meanwhile, the company’s “reported” IndAS EBITDA zoomed 273% YoY to ₹53.9 Cr during the quarter under review, while margins expanded to 15.7% from 4.8% in the year ago quarter.

“Increased investments in advertising and marketing initiatives, coupled with heightened competitive intensity in the category, led to moderation in margins during the quarter. In Q4 FY26, the marketing spends stood at ~7.3% of the revenue from operations,” added the company.

Founded in 2016 by Ankit Garg and Chaitanya Ramalingegowda, Wakefit sells a wide range of products, under three major segments – mattresses, furniture, and furnishings, through online and offline channels. As per the company, mattresses accounted for 61.7% of its revenue during the quarter under review, followed by furniture with 30.1%, and furnishings with a 8.2% share in the revenue pie.

Breaking down the channel mix, the company said that 75.5% of its sales came from its own channels in the March 2026 quarter, while the remaining 24.5% came from external distribution.

Wakefit’s Macroeconomic Woes

For the full fiscal year FY26, Wakefit reported a net profit of ₹189.2 Cr against a net loss of ₹35 Cr in the year-ago period. Operating revenue for the fiscal rose 17% YoY to ₹1,488.9 Cr.

Cofounder, CEO and chairman Garg said that multiple external headwinds weighed on consumer demand and discretionary spending, which impacted the company’s second half of the fiscal.

“From a macro perspective March 2026 witnessed significant volatility across several raw material categories, with select key inputs such as Polyol and TDI (Toluene Diisocyanate) registering price increases in the range of 30% to 160%. Furthermore, there were elevated costs across crude linked materials, packaging inputs, logistics, and infrastructure expenses,” added cofounder and executive director Ramalingegowda.

Ramalingegowda, however, claimed that the impact of cost inflation was partly mitigated through strong supplier relationships and by initiating measured price increases towards the end of March. He added that further rounds of price hikes were implemented in April.

On the operational front, the mattress brand closed March 2026 with 139 active company-owned, company-operated (CoCo) stores. Wakefit also claimed to be present in 1,948 multi-brand outlets (MBOs)  across 536 cities as of March 2026.

The company’s gross profit for the quarter stood at ₹192.3 Cr in Q4 FY26, up 19% from ₹162.2 Cr in the same quarter last year. The gross profit margin increased to 56% in the quarter under review, from 53.6% in Q3 FY25. The company said that the gross profit margin in the quarter was impacted due to raw material cost volatility.

“The company has been proactively stocking raw materials and taking price hikes in a phased manner to manage this situation, while balancing growth,” added Wakefit in its investor presentation.

Going forward, the company plans to “prioritise” store expansion in tier II towns to deepen its geographic reach and invest in marketing and customer acquisition to drive long-term growth.

Ramalingegowda said that Wakefit would be looking to evolve into an integrated home-focused platform to enable adjacent categories (like home and furniture) to drive cross-selling opportunities, customer retention, and long-term growth.

To cater to this emerging home and furnishings segment, the D2C brand also reiterated that its board has approved amending the company’s memorandum of association (MoA) to expand the company’s scope of work as a “comprehensive home and furnishing solution provider”. The proposal is currently open to shareholder approval.

Meanwhile, Wakefit’s board also approved a proposal to appoint BMP & Co. LLP as the secretarial auditors of the company for a period of five years till FY31, subject to approval of the shareholders at the upcoming annual general meeting.

Shares of the company ended today’s trading session 1.37% higher at  ₹144.5 apiece on the BSE.