Wakefit Innovations Limited has made the audio recording of its earnings conference call available to investors and stakeholders. The call, held on August 7, 2026, discussed the company's unaudited financial results for the first quarter (Q1) of fiscal year 2027 (FY27), covering the period ended June 30, 2026. This disclosure follows the earlier scheduling of the event on August 3, 2026, ensuring transparency and accessibility for market participants reviewing the quarterly performance.

The intimation was issued pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The Company Secretary and Compliance Officer, Surbhi Sharma, signed the disclosure on August 7, 2026, confirming that the recording is hosted on the company’s official website under the investor relations section. This procedural step completes the post-earnings communication cycle for Q1 FY27.

Call Participants and Structure

The earnings call was organized by Capital 360 ONE CM Research. The management team representing Wakefit Innovations Limited included key executives who addressed queries regarding the quarter's operational and financial outcomes. The participating leadership team comprised:

Participants were able to join via Diamond Pass links or universal dial-in numbers provided by the research agency. International toll-free numbers were also available for investors in regions including the USA, UK, Australia, and Europe. Mr. Akhil Parekh from 360 ONE Capital Market Research served as the contact point for technical assistance during the proceedings.

Accessing the Recording

Investors can now review the complete discussion by accessing the audio link provided on the company’s investor relations portal at www.wakefit.co/investor-relations . The recording captures management’s commentary on the unaudited results for the quarter ended June 30, 2026, offering insights into revenue trends, cost structures, and strategic initiatives for the coming quarters. Stakeholders are advised to refer to this official recording for accurate interpretation of the financial data presented during the session.

Wakefit Innovations Limited reported a strong start to FY27, with revenue from operations rising 16.6% year-on-year to ₹4,049.1 million in the quarter ended June 30, 2026. The Bengaluru-based direct-to-consumer home furnishings company saw its profit after tax (PAT) increase by 19.2% to ₹233.8 million, driven by improved operational efficiency and strategic price adjustments that offset raw material volatility linked to Middle East geopolitical tensions. This performance highlights the company's ability to expand margins amidst supply chain headwinds.

The results were filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, on August 06, 2026. The Board of Directors approved the unaudited financials, reviewed by Statutory Auditors M/s. B S R & Co. LLP under Standard on Review Engagements (SRE) 2410. Reported EBITDA (excluding other income) grew 25.2% to ₹564.0 million, while operating EBITDA surged 49.7% to ₹368.3 million.

Financial Performance

The following table summarises Wakefit Innovations' key financial metrics for Q1FY27 compared to Q1FY26:

Gross profit stood at ₹2,310.9 million, representing a margin of 57.1%, an improvement from 55.8% in the corresponding quarter last year. This uplift was primarily driven by price hikes implemented to counter sharp increases in Polyol and TDI prices due to supply disruptions. Other income contributed ₹156.2 million to total income. ESOP expenses for the quarter stood at ₹6.1 million.

Operational Highlights

Mattresses contributed 65.9% of total sales, followed by furniture at 27.8% and furnishings at 6.3%. Own channels accounted for 72.3% of revenue, growing 20.5% year-on-year, while external channels grew 7.6%. Retail channel growth mirrored this trend at 20.5% YoY.

Wakefit Innovations expanded its physical footprint significantly, adding 27 new COCO stores during the quarter to reach a total of 165 active stores as of June 30, 2026. This pace is notably higher than the 42 stores added throughout all of FY26. Additionally, the Managed Business Operator (MBO) network expanded to 2,250 stores across 701 cities. Advertisement and marketing investments remained stable at 7.6% of revenue.

What the Numbers Show

The divergence between reported PAT growth (19.2%) and operating EBITDA growth (49.7%) highlights the impact of tax accounting adjustments rather than pure operational leverage. The current quarter included a deferred tax expense of ₹73.0 million due to the partial unwinding of deferred tax assets (DTA). This contrasts sharply with Q4FY26, which benefited from a one-time DTA recognition of ₹980.7 million. Excluding these tax movements, underlying PAT was ₹306.8 million, indicating that core operational profitability remained stable with only a marginal 1.9% YoY increase. This suggests that while top-line growth is accelerating, the normalization of tax benefits has temporarily muted net profit visibility compared to the prior year's exceptional quarter.

Management Commentary

Ankit Garg, Chairman, CEO and Executive Director, noted that repeat customers contributed 36.7% of revenue, underscoring strong brand loyalty. He highlighted that the mattress business grew 27.3% YoY and remains the primary cash-generation engine. Looking ahead, management expects furniture and furnishings to gain meaningful contribution over the next three to four years.

Chaitanya Ramalingegowda, Executive Director, addressed the supply chain challenges caused by Middle East-related volatility in raw material costs. He confirmed that calibrated pricing actions mitigated immediate impacts, though full cost pressures may reflect in H1FY27. The company remains on track for its planned capex of ₹1,000–1,200 million, with 80% allocated to retail expansion, particularly jumbo stores, and 20% to manufacturing automation.