Wakefit turns profitable in FY26 as revenue rises 17% to Rs 1,489 crore
Wakefit Innovations, a Bengaluru-based company which sells mattresses, pillows, furniture and home improvement products, reported a sharp turnaround in the fourth quarter and full year ended March 2026, as higher revenue, improved margins and a deferred tax gain helped the company move into profit.
The company’s revenue from operations rose 13.5% year-on-year to Rs 343.6 crore in Q4 FY26, compared with Rs 302.6 crore in the same quarter last year. For the full year, revenue increased 16.9% to Rs 1,488.9 crore from Rs 1,273.7 crore in FY25.
Its gross margin improved to 56% in Q4 FY26 from 53.6% a year earlier. The company said margins were affected by raw material cost volatility, proactive stocking, and phased price increases. For FY26, gross margin stood at 55.8%, compared with 55% in FY25.
Wakefit’s reported EBITDA, excluding other income, rose to Rs 36.5 crore in Q4 FY26 from Rs 6 crore in Q4 FY25. EBITDA margin expanded to 10.6% from 2% during the quarter. Including other income, reported IndAS EBITDA stood at Rs 53.9 crore, compared with Rs 14.4 crore a year earlier.
The company posted a profit before tax of Rs 23.5 crore in Q4 FY26, against a loss of Rs 26.2 crore in the same period last year, while PAT stood at Rs 121.7 crore, compared with a loss of Rs 26.2 crore a year earlier, largely aided by the recognition of deferred tax assets worth Rs 98.1 crore.
Excluding the deferred tax gain, Wakefit’s quarterly profit was about Rs 24 crore.
For FY26, profit before tax before exceptional items stood at Rs 94.9 crore, compared with a loss of Rs 35 crore in FY25. The company reported PAT rose to Rs 189.2 crore, against a loss of Rs 35 crore in the previous financial year. Its PAT margin improved to 12.7% from negative 2.7%.
Operating EBITDA, which excludes lease accounting adjustments, ESOP costs and one-time or non-operating items, improved to Rs 21.8 crore in Q4 FY26 from a loss of Rs 3.2 crore in Q4 FY25. For the full year, operating EBITDA rose to Rs 112.3 crore from Rs 18 crore in FY25.
Employee benefit expenses were largely flat at Rs 166.2 crore in FY26, compared with Rs 165.7 crore in FY25. Other expenses rose to Rs 482 crore from Rs 475.5 crore. Finance costs declined to Rs 28.1 crore from Rs 29.6 crore, while depreciation and amortisation increased to Rs 104.5 crore from Rs 96.2 crore.
Wakefit’s balance sheet strengthened during the year. Total assets increased to Rs 1,751.2 crore as of March 31, 2026, from Rs 1,050.8 crore a year earlier. The company’s total equity more than doubled to Rs 1,131.8 crore from Rs 520.6 crore, helped by new shares issued during the year and improved profitability.
Cash and cash equivalents rose to Rs 88.5 crore from Rs 7.1 crore. Bank balances other than cash and cash equivalents increased to Rs 154.4 crore from Rs 3.1 crore, while inventories stood at Rs 197.6 crore, compared with Rs 163.6 crore a year earlier.
Lease liabilities declined slightly to Rs 271.9 crore from Rs 273.3 crore. Total liabilities increased to Rs 619.4 crore from Rs 530.2 crore, mainly due to higher trade payables and current liabilities linked to business growth.
Net cash generated from operating activities rose to Rs 244.5 crore in FY26 from Rs 76.2 crore in FY25, supported by higher profitability and improved working capital efficiency. Cash generated from operations before taxes stood at Rs 246.7 crore, compared with Rs 74.9 crore in FY25.
Investing activities used Rs 498.7 crore, mainly due to investments in fixed deposits and mutual funds. Financing activities generated Rs 335.5 crore, largely driven by fresh equity issuance related to the IPO.
Wakefit continued to scale across product categories during the year. Mattress revenue rose to Rs 913.9 crore in FY26 from Rs 781.4 crore in FY25, while furniture revenue increased to Rs 435.8 crore from Rs 351.7 crore. Furnishings revenue stood at Rs 139.3 crore, compared with Rs 140.6 crore a year earlier.
The company’s total sales volume increased to 29.3 lakh units from 26 lakh units in FY25. Wakefit also expanded its company-owned and company-operated store network to 139 outlets from 105, strengthening its offline retail presence.
Return on net worth improved to 16.7% in FY26 from negative 7% in FY25, while return on capital employed rose to 8.5% from negative 1%. Net working capital days fell to 2.2 days from 3.8 days, indicating improved working capital efficiency.
Commenting on the results, Ankit Garg, Chairman, CEO and Executive Director: “In FY26 we set a new record in terms of revenue from operations. The mattress segment witnessed healthy momentum with ~17% YoY growth. Furniture category delivered growth of ~24% on a YoY basis. In FY26, our retail channel growth stood at 49%.”
“Due to the seasonality element in the business, YoY trends are appropriate parameters to gauge performance. In Q4FY26, the mattress category maintained its growth trajectory and reported a 20% growth on a YoY basis and outperformed the overall industry growth trends. The Retail Channel growth for Q4FY26 stood at ~35%,” he said.
“Multiple external headwinds impacted the second half of the year, weighing on consumer demand and discretionary spending. Despite these challenges, the Company delivered a reasonable performance during the period. In FY27, we are targeting revenue growth driven by the strength of our Mattress portfolio, while improving the reach of our furniture and furnishing business. We are closely monitoring raw material prices to navigate the volatile environment with prudent price increases and focused cost optimization efforts while ensuring best value to our customers,” Garg added.
