Wakefit Innovations Ltd — Q1 FY27 earnings call
Summary generated by AI from the official transcript Wakefit Innovations Ltd filed with BSE on 14 Aug 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Wakefit Innovations reported Q1 FY27 revenue from operations of Rs. 404.9 crore, up 16.6% year-on-year, with EBITDA of Rs. 56 crore reflecting 25.2% growth and a 13.9% margin. Management said mattress growth was driven roughly two-thirds by volume and one-third by price increases taken in response to Middle East-driven raw material inflation, while furniture growth slowed due to a machine breakdown, workforce shortages, and a deliberate pause on adding furniture-first stores. The company added 27 new COCO stores in the quarter, taking the network to 165 stores across 100 cities, and outlined capex plans of Rs. 100-120 crore for FY27 mostly directed at retail expansion including Jumbo stores.
1 statement from this call is not shown because its supporting quote could not be reproduced within our quoting limits. Nothing shown here is affected: every statement on this page carries its verified quote.
Numbers mentioned
Revenue from operations: Rs. 404.9 crores (Q1 FY27)
p. 3
“revenue from operations for Q1 FY27 increased 16.6% year-on-year to Rs. 404.9 crores”
Ankit Garg, page 3 of the filed PDF · View the filing
EBITDA: Rs. 56 crore (Q1 FY27)
p. 3
“EBITDA grew 25.2% year-on-year to Rs. 56 crores with an EBITDA margin of 13.9%”
Ankit Garg, page 3 of the filed PDF · View the filing
Profit after tax: Rs. 23.3 crores (Q1 FY27)
p. 3
“Profit after tax for the quarter increased 19.2% year-on-year to Rs. 23.3 crores”
Ankit Garg, page 3 of the filed PDF · View the filing
Mattress revenue contribution: 65.9% (Q1 FY27)
p. 4
“Mattress contributing 65.9%, about 66% for Q1 FY27 revenue with a healthy 27.3% year-on-year growth”
Ankit Garg, page 4 of the filed PDF · View the filing
COCO store count: 165 stores across 100 cities (as of June 30, 2026)
p. 4
“We added nearly 27 new COCO stores, company-owned, company-operated, taking our total network to 165 stores across 100 cities as of June 30th”
C. Ramalingegowda, page 4 of the filed PDF · View the filing
MBO outlet count: about 2250 outlets across 701 cities (Q1 FY27)
p. 5
“MBOs, which also complement our COCO channels in identifying how fertile an offline market is, it’s very asset-light and grew to about 2250 outlets across 701 cities”
C. Ramalingegowda, page 5 of the filed PDF · View the filing
Gross profit: Rs. 231 crore (Q1 FY27)
p. 5
“Gross profit for the quarter stood at Rs. 231 crore, up 19.4% YoY, with gross margin improving to 57.1% in Quarter 1 FY27, from 55.8% in the corresponding quarter last year”
Parul Gupta, page 5 of the filed PDF · View the filing
Operating EBITDA margin: 9.1% (Q1 FY27)
p. 5
“Operating EBITDA for the quarter stood at Rs. 37 crore, registering a 50% YoY increase, with the operating EBITDA margin expanding to 9.1%”
Parul Gupta, page 5 of the filed PDF · View the filing
A&P spend: 7.6% of revenue from operations (Q1 FY27)
p. 5
“Our advertisements and marketing investments remained consistent with the previous quarter and in line with our earlier guidance, at 7.6% of the revenue from operations”
Parul Gupta, page 5 of the filed PDF · View the filing
PBT margin: 9.0% (Q1 FY27)
p. 6
“Profit before tax before exceptional items, stood at Rs. 36.3 crore, registering a robust 85% YoY growth, with the PBT margin improving to 9.0%, from 5.7% in the corresponding quarter last year”
Parul Gupta, page 6 of the filed PDF · View the filing
Own channel revenue contribution: 72.3% of total revenue (Q1 FY27)
p. 5
“our own channels contributed 72.3% of total revenue, with revenue from these channels growing 20.5% YoY”
C. Ramalingegowda, page 5 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
COCO store additions — about 80 company-owned, company-operated stores · FY27
stated firmly by C. Ramalingegowda
p. 4
“We remain on track to achieve our target of adding about 80 company-owned, company-operated stores during FY27”
C. Ramalingegowda, page 4 of the filed PDF · View the filing
Capital expenditure — Rs. 100 to Rs. 120 crore · FY27
stated firmly by Parul Gupta
p. 6
“we expect to incur a capital expenditure of around Rs. 100 to Rs. 120 crore in FY27, with nearly 80% of our investment directed towards expanding our retail footprint”
Parul Gupta, page 6 of the filed PDF · View the filing
Raw material cost impact — H1 FY27
stated conditionally by C. Ramalingegowda
p. 11
“If something worse doesn’t happen in the Middle East, things should again start to improve in the OND quarter”
C. Ramalingegowda, page 11 of the filed PDF · View the filing
Furniture category growth — mid-teens to late-teens · next two quarters
stated as an aspiration by C. Ramalingegowda
p. 7
“we should get back to mid-teens to late-teens furniture category growth over the next two quarters steadily”
C. Ramalingegowda, page 7 of the filed PDF · View the filing
H1 gross margin impact from raw materials — 100 to 120 basis points · H1 FY27
stated conditionally by C. Ramalingegowda
p. 14
“When you look at the overall H1, it might not be more than 100 to 120 basis points unless something else happens in the rest of August and September in terms of driving up the prices”
C. Ramalingegowda, page 14 of the filed PDF · View the filing
A&P spend — 7%-8% of revenue · FY27
stated firmly by C. Ramalingegowda
p. 12
“Yes, please because the festive season will also come up now so in that range, it should be this”
C. Ramalingegowda, page 12 of the filed PDF · View the filing
Rental outgo — around Rs. 80-90 crores · FY27
stated firmly by Parul Gupta
p. 12
“Yes, around Rs. 80-90 crores”
Parul Gupta, page 12 of the filed PDF · View the filing
ESOP expenses — Rs. 10-12 crores · FY27
stated conditionally by Parul Gupta
p. 12
“It may range anywhere between Rs. 10-12 crores is what we anticipate”
Parul Gupta, page 12 of the filed PDF · View the filing
Operating EBITDA margin — about 7.5% · FY27
stated as an aspiration by C. Ramalingegowda
p. 16
“We should aspire for the same number this year given the huge volatility in all of the things”
C. Ramalingegowda, page 16 of the filed PDF · View the filing
Organized mattress market share — 4-5 percentage points · next 3-5 years
stated as an aspiration by C. Ramalingegowda
p. 18
“We hope that over the next 3-5 years, we will at least add 4-5 percentage points to our organized market share”
C. Ramalingegowda, page 18 of the filed PDF · View the filing
COCO store additions — a similar number · next year
stated as an aspiration by C. Ramalingegowda
p. 19
“this year we have targeted at least 80 stores to be opened, next year a similar number”
C. Ramalingegowda, page 19 of the filed PDF · View the filing
Pricing
stated conditionally by C. Ramalingegowda
p. 20
“Barring any unforeseen increases, we will not be touching the prices as of now”
C. Ramalingegowda, page 20 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said roughly two-thirds of growth was from volume and one-third from price increases, and expects furniture to return to mid-teens to late-teens growth over the next two quarters.
Answered by C. Ramalingegowda
Asked by Siddhartha Bera: What was the volume versus value growth split in mattress this quarter, and how should furniture growth be viewed going forward?
p. 6
“After all the growth that has come over, about two-thirds can be attributed to volume growth and about one-third can be attributed to the price increases that we took because of the Middle East and West Asia crisis”
C. Ramalingegowda, page 6 of the filed PDF · View the filing
Management said premiumization share increased by a small 20-30% but price increases themselves did not drive premiumization.
Answered by C. Ramalingegowda
Asked by Navin: Did the mattress ASP benefit from premiumization mix shift in addition to price hikes?
p. 8
“Yes, short answer is the premiumization percentage is very similar to what it was always there. A small, maybe about 20% to 30% increase has happened in the premium category’s share of sales in mattresses”
C. Ramalingegowda, page 8 of the filed PDF · View the filing
Management said a small price cut was taken in June as raw material prices normalized, and growth so far has been volume driven.
Answered by C. Ramalingegowda
Asked by Harish Advani: How is the growth trend continuing into July and August?
p. 9
“In June, we have started the quarter by taking a small price cut but with a very, very nominal price cut as the price is normalized for raw materials”
C. Ramalingegowda, page 9 of the filed PDF · View the filing
Management said they hold about 3-4 weeks of raw material and expect the full impact to be seen across H1 FY27.
Answered by C. Ramalingegowda
Asked by Rakshit Desai: How many months of low-cost inventory remain and when will higher input costs fully flow through the P&L?
p. 11
“We do have about 3-4 weeks of raw material that is parked with us based on different types of raw materials”
C. Ramalingegowda, page 11 of the filed PDF · View the filing
Management confirmed inventory cost is below spot prices due to supplier relationships.
Answered by C. Ramalingegowda
Asked by Ritesh Shah: Would the average cost of held inventory be below or above spot prices currently?
p. 12
“It will be below the spot prices because we acquired based on relationships and existing POS”
C. Ramalingegowda, page 12 of the filed PDF · View the filing
Management estimated about 100-120 basis points of impact across H1, or roughly 100 basis points lower versus Q1.
Answered by C. Ramalingegowda
Asked by Dhiraj: What is the expected gross margin contraction from raw material cost increases across H1?
p. 14
“No, compared to Q1, it might be 100 basis points lower. But if things stabilize, it might actually be a lower than 100 basis point impact also”
C. Ramalingegowda, page 14 of the filed PDF · View the filing
Management clarified operational EBITDA was around 9% this quarter, guided to about 7.5% for the year, with higher steady-state levels two to three years away.
Answered by C. Ramalingegowda
Asked by Deekshant Gupta: Is the 14-15% EBITDA margin sustainable this year, and 16-17% in two to three years?
p. 16
“Firstly, those are reported EBITDA. I think our operational EBITDA would be somewhere around 9% for this quarter”
C. Ramalingegowda, page 16 of the filed PDF · View the filing
Management said no further price hikes are planned barring unforeseen cost increases.
Answered by C. Ramalingegowda
Asked by Bala Murali Krishna: Will there be further price hikes after June?
p. 20
“Barring any unforeseen increases, we will not be touching the prices as of now”
C. Ramalingegowda, page 20 of the filed PDF · View the filing
Risks flagged
Volatility in key raw material prices driven by Middle East geopolitical developments affecting polyol and TDI inputs
p. 4
“the operating environment remained dynamic with the volatility in key raw material prices that were driven by geopolitical developments in the Middle East, particularly across the main inputs such as polyol and TDI that are used in foam making”
C. Ramalingegowda, page 4 of the filed PDF · View the filing
Ongoing supply disruption risk from recurring conflict flare-ups affecting raw material availability
p. 7
“today the conflict reappearing its head up on and off once in a few weeks given both of these reasons”
C. Ramalingegowda, page 7 of the filed PDF · View the filing
Shortage of raw materials forcing purchases at higher prices despite cost increases
p. 17
“the raw material suppliers finally said, even if you pay a higher price, there is a shortage”
C. Ramalingegowda, page 17 of the filed PDF · View the filing
Furniture category slowdown due to machine breakdown and workforce shortage from elections
p. 7
“there were two reasons for slowdown in furniture. Reason number one was specific machine breakdown, workforce shortage due to elections, etc.”
C. Ramalingegowda, page 7 of the filed PDF · View the filing
Lack of long-term visibility on raw material costs requiring frequent reassessment
p. 11
“there is no standardized long-term visibility on the raw materials because of the shortages also that I started the call with”
C. Ramalingegowda, page 11 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.