Expenses outpace revenue as Wakefit margin falls 2.84 points
Standalone net profit dropped 32.04% QoQ, with a higher tax rate and other income making up 60.44% of pre-tax profit.
Filed 12 Nov 2026, 19:41 IST · after market close · Wakefit Innovations Ltd (WAKEFIT)
Key takeaways
- Standalone revenue rose 11.63% QoQ to Rs 451.99 cr, but expenses grew 15.31%, cutting operating margin by 2.84 percentage points.
- Net profit fell 32.04% QoQ to Rs 15.89 cr as the tax rate rose 4.53 percentage points and other income contributed 60.44% of pre-tax profit.
- At 11.09%, Wakefit's operating margin was 0.14 percentage points below the 11.23% median for 329 Consumer Discretionary peers.
Price around the results
Revenue grew, but operating profit declined
Wakefit's standalone revenue increased 11.63% QoQ to Rs 451.99 cr, but operating profit fell 11.08% to Rs 50.15 cr. The mismatch reflects weaker operating conversion: expenses rose 15.31%, faster than revenue, taking the operating margin down from 13.93% to 11.09%.
Higher costs and tax weakened profit quality
Interest expense rose 8.67% QoQ and depreciation increased 11.61%, adding pressure below operating profit. The tax rate rose 4.53 percentage points to 40.13%, while other income accounted for 60.44% of pre-tax profit. Net profit therefore declined 32.04% QoQ to Rs 15.89 cr despite the revenue increase.
Margin trails the peer median
Wakefit's 11.09% operating margin was 0.14 percentage points below the 11.23% median among 329 Consumer Discretionary peers that had reported the quarter. The quarter-on-quarter direction was also negative, with margin down 2.84 percentage points from Q1FY27's 13.93%.
Results filed after market close
Wakefit filed these standalone results after market close on 12 November 2026. The immediate stock response was therefore not yet part of this report.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹452 cr | ₹405 cr | +11.63% |
| Other income | ₹16 cr | ₹16 cr | +2.69% |
| Expenses | ₹402 cr | ₹349 cr | +15.31% |
| Operating profit | ₹50 cr | ₹56 cr | -11.08% |
| Operating margin (%) | 11.09% | 13.93% | — |
| Interest | ₹8 cr | ₹7 cr | +8.67% |
| Depreciation | ₹32 cr | ₹28 cr | +11.61% |
| Profit before tax | ₹27 cr | ₹36 cr | -26.89% |
| Tax | ₹11 cr | ₹13 cr | -17.57% |
| Net profit | ₹16 cr | ₹23 cr | -32.04% |
| EPS (₹) | ₹0.48 | ₹0.71 | -32.39% |
Operating margin of 11.09% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 11.09% after expenses grew 15.31% QoQ.
- Whether the tax rate moves below 40.13% in the next quarter.
- Whether other income remains as high as 60.44% of pre-tax profit.