Wakefit posts 13.93% operating margin as raw-material volatility rises
Management said mattresses grew 27.3% year on year, but Polyol and TDI price volatility and higher supply-chain costs remain concerns.
Filed 06 Aug 2026, 19:14 IST · after market close · Wakefit Innovations Ltd (WAKEFIT)
Key takeaways
- Wakefit reported standalone Q1FY27 net profit of Rs 23.38 cr, with other income contributing Rs 15.62 cr to profit before tax of Rs 36.30 cr.
- Operating margin was 13.93%, 1.19 percentage points above the 12.74% median across 104 Consumer Discretionary peers.
- Management said the mattress business grew 27.3% year on year, while repeat customers contributed 36.7% of revenue.
Price around the results
Standalone Q1FY27 profit had a material non-operating contribution
Wakefit generated Rs 404.91 cr of standalone revenue and Rs 23.38 cr of net profit in Q1FY27, with operating profit at Rs 56.40 cr. Other income of Rs 15.62 cr was material relative to profit before tax of Rs 36.30 cr, so reported profit was not driven by operations alone. The tax rate was 35.60%.
Margin stayed above peers despite input-cost pressure
The 13.93% operating margin was 1.19 percentage points above the 12.74% median for 104 Consumer Discretionary companies that had reported the quarter. Management said Polyol and TDI prices used in mattresses were significantly volatile, while the Middle East situation also raised supply-chain costs in other categories. The company said the full impact of higher raw-material costs would be reflected in H1 FY27.
Mattresses and repeat customers led the business update
Management said the mattress business grew 27.3% year on year, and repeat customers accounted for 36.7% of revenue. The company said it added 27 COCO stores during the quarter, taking the network to 165 active stores, while its MBO network reached 2,250 stores across 701 cities. Management said it remains on track to add nearly 80 COCO stores in FY27.
Retail expansion is the main planned capital allocation
Management said planned FY27 capex of around Rs 1,000-1,200 million remains on track. The company said approximately 80% is allocated to retail expansion, particularly the jumbo-store format, with the remaining 20% going to manufacturing automation and other business upgrades. The filing was made after market close on 6 August 2026.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹405 cr |
| Other income | ₹16 cr |
| Expenses | ₹349 cr |
| Operating profit | ₹56 cr |
| Operating margin (%) | 13.93% |
| Interest | ₹7 cr |
| Depreciation | ₹28 cr |
| Profit before tax | ₹36 cr |
| Tax | ₹13 cr |
| Net profit | ₹23 cr |
| EPS (₹) | ₹0.71 |
Operating margin of 13.93% compares with a Consumer Discretionary sector median of 12.74% across 104 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The mattress business grew 27.3% year on year during the quarter.
- Repeat customers contributed 36.7% of revenue during the quarter.
Guidance & outlook
- Wakefit remains on track to add nearly 80 COCO stores during FY27.
- Wakefit's planned FY27 capex of around INR 1,000-1,200 million remains on track.
Expansion
- Wakefit added 27 COCO stores in the quarter, taking its network to 165 active stores.
- Wakefit's MBO network expanded to 2,250 stores across 701 cities.
- Around 80% of FY27 capex is allocated to retail expansion, particularly the jumbo store format.
- The remaining 20% of FY27 capex is allocated to manufacturing automation and regular business upgrades.
New initiatives
- Wakefit is leveraging technology to enhance customer experience and drive operational efficiencies.
Problems & risks
- Raw material prices were significantly volatile, particularly for Polyol and TDI used in mattresses.
- The Middle East situation increased supply chain costs across Wakefit's other categories.
- Wakefit said the full impact of increased raw material costs will be reflected in H1 FY27.
What to watch
- Whether operating margin holds above 13.93% as the company absorbs the stated raw-material cost impact.
- COCO store additions versus the 27 added in Q1FY27 and management's nearly 80-store FY27 plan.
- Whether repeat customers' contribution remains around 36.7% of revenue.