Wakefit Q2: Profit Remains Flat YoY At ₹16 Cr, Revenue Crosses ₹450 Cr

Listed mattress brand Wakefit reported a net profit of ₹15.9 Cr in second quarter (Q1) of the fiscal year 2026-27 (FY27), almost flat from nearly ₹16 Cr in the year-ago quarter. However, on a quarter-on-quarter (QoQ) basis, the bottom line tanked 32% from ₹23.4 Cr in Q1 FY27.

The company attributed the sequential decline in profitability to rising commodity prices, geopolitical disruptions and the “challenging” operating environment.

“The operating environment remained challenging during the quarter, with crude-linked raw materials, particularly Polyol and TDI, continuing to remain elevated, with further price increases witnessed in recent months. Geopolitical disruptions in West Asia also impacted raw material availability and logistics across the industry…,” said Wakefit cofounder and executive director Chaitanya Ramalingegowda.

Despite this, operating revenue rose nearly 20% to a record ₹452 Cr in the quarter under review as against ₹376.9 Cr in Q2 FY26. Sequentially, the top line also rose 11.6% from ₹404.9 Cr in the preceding quarter.

While mattresses brought in 66% of revenue, furniture, furnishings and decor contributed the remaining 38%. 

Including other income of ₹16 Cr, Wakefit’s total income stood at ₹468 Cr in Q2 FY27. 

Meanwhile, total expenses for the quarter under review also shot up 19% to ₹441.4 Cr compared to ₹370.5 Cr in Q2 FY26. The listed company also incurred additional tax expenses of ₹10.7 Cr during the quarter.

“The company recorded a deferred tax charge of ₹6.4 Cr in Q2 FY27, compared with nil in Q2 FY26 and ₹7.3 Cr in Q1 FY27. This is attributable to two factors: (i) normal-course reversal of timing differences relating to depreciation and provisions as they unwind through the P&L, and (ii) the unwinding of the deferred tax asset on carried-forward losses,” said the company in a statement.

In its investor presentation, the company said that its operating EBITDA rose 25.8% to ₹30.5 Cr in the quarter under review compared to ₹24.2 Cr in Q2 FY26. Operating EBITDA margin also improved to 6.7% from 6.4% in the year-ago quarter.

On the operational front, Wakefit opened 41 new offline stores in Q2 FY27, taking its total company-owned store count to 205 across 137 cities. It also had a presence across 2,589 multi-brand outlets spanning 787 towns and cities.

Wakefit said that its own channels contributed 70% of its sales in Q2 FY27, while external channels accounted for the remaining 30%.

The company also noted it operated a 1.6 Lakh sq. ft. mother warehouse in Hosur, 10 inventory holding points and 26 points of delivery at the end of September 2026.

“Our planned FY27 capex of around ₹100 Cr to ₹120 Cr remains on track, with nearly 80% allocated towards retail expansion, particularly our jumbo store format. Construction of our first jumbo store in Bengaluru is progressing, and we are targeting its launch in Q2 FY28,” added Ramalingegowda.

Shares of Wakefit closed Thursday’s trading session 1.1% lower at ₹138.75 on the BSE.

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