Wakefit Innovations climbs after Q3 PAT turns positive

Wakefit Innovations rose 7.10% to Rs 199.10 after the company reported a strong operational and financial performance for the quarter ended 31 December 2025.

On a standalone basis, revenue from operations stood at Rs 421.34 crore in Q3 FY26, up 9.4% YoY from Rs 385.18 crore in Q3 FY25.

Profit after tax turned positive at Rs 31.86 crore in Q3 FY26, compared with a loss of Rs 2.41 crore in Q3 FY25. PAT margin improved to 7.6% from -0.6% in Q3 FY25.

Reported EBITDA excluding other income surged to Rs 59.18 crore in Q3 FY26 from Rs 20 crore a year ago, marking a 195.9% YoY increase, with EBITDA margin expanding sharply to 14% from 5.2%. On an Ind AS basis, EBITDA including other income stood at Rs 70.34 crore, up 158.1% YoY, with margin improving to 16.7% from 7.1% in Q3 FY25.

Operating EBITDA rose more than five-fold to Rs 41.64 crore in Q3 FY26 from Rs 7.97 crore in Q3 FY25, translating into a 422.7% YoY increase. Operating EBITDA margin improved to 9.9% from 2.1% in the corresponding quarter last year.

During the quarter, the company reported its highest-ever quarterly sales, despite a year-on-year shift in festive demand, as Diwali fell earlier and some purchases were pulled forward into Q2 FY26. Management said GST 2.0 had no impact on Wakefits major product categories, with GST rates remaining unchanged at 18%, though Q3 demand saw marginal pressure due to temporary consumption shifts toward categories benefiting from GST reductions.

To provide a normalised growth perspective, the company said year-on-year sales growth for the September-December 2025 period stood at around 14%. Demand trends in Q4 FY26 indicate a healthy recovery, with the second half of the year typically being stronger for the business.

Gross margin in Q3 FY26 was impacted by seasonal offers and discounts, although it still improved by 230 bps YoY. The company noted that elevated marketing spends by competitors have increased cost intensity in recent quarters, but expects its marketing spends to normalise to 8-9% of sales over the medium term.

From a business mix perspective, mattresses contributed 62.3% of Q3 FY26 sales, furniture 28.7%, and furnishings 9.0%. Own channels accounted for 64.5% of sales, while external channels contributed 35.5%. As of 31 December 2025, Wakefit operated 137 active Company-Owned, Company-Operated (COCO) stores across India.

Wakefit Innovations chairman, CEO and executive director Ankit Garg said that early indicators point to a stronger Q4 FY26, with the company targeting mid- to high-teen revenue growth and further improvement in operating EBITDA margins. He added that post IPO, the company's balance sheet has strengthened significantly, with investable cash of Rs 889.18 crore as of 31 December 2025.

Executive director Chaitanya Ramalingegowda said the company continued to leverage its own direct-to-consumer channels to drive growth, with the core mattress business growing 11.7% YoY in the September to December 2025 period, while furniture and furnishings grew a faster 35.6% YoY. He highlighted that this diversification is improving customer repeat behaviour and lifetime value, supported by ongoing retail expansion, with 137 active COCO stores at the end of the quarter. He added that Wakefit remains focused on strengthening its omnichannel model, brand-led growth and operational capabilities to capture long-term opportunities in Indias under-penetrated home and furnishings market.

Bengaluru-based Wakefit Innovations is one of Indias largest and fastest-growing D2C home and furnishing solutions companies, with a diversified product portfolio spanning mattresses, furniture and home furnishings, and a growing omnichannel presence.

Shares of Wakefit Innovations made their stock market debut on 15 December 2025. The stock listed at Rs 194.10 on the BSE, a marginal discount of 0.46% to the issue price of Rs 195. The companys initial public offering was subscribed 2.52 times. The IPO opened for bidding on 8 December 2025, and closed on 10 December 2025, with the price band fixed at Rs 185-195 per share.

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