Wakefit Innovations Limited delivered strong Q3 FY26 performance with revenue growing 9.4% year-on-year to ₹4,213 million and EBITDA nearly doubling to ₹592 million, despite festive demand timing shifts affecting quarterly comparisons. The company held its maiden earnings conference call on February 11, 2026, providing comprehensive insights into operational performance and strategic direction.

Strong Financial Performance Despite Timing Challenges

The company achieved its highest-ever quarterly revenue of ₹4,213 million, representing a 9.4% year-on-year growth. However, management noted that Diwali-related demand advanced to September 2025 compared to October 2024, creating timing-related comparisons. When viewed across the last four months (September to December 2025), sales growth stood at a robust 14%.

Operating EBITDA, which excludes Ind AS lease adjustments, ESOP charges and one-time costs, stood at ₹416 million with a 9.9% margin, compared to ₹79.7 million at 2.1% margin in the previous year quarter.

Nine-Month Performance Highlights

For the nine months ended December 31, 2025, Wakefit demonstrated consistent growth momentum with revenue reaching ₹11,453 million, translating to 17.9% year-on-year growth. The company returned to profitability during this fiscal year, marking a key milestone in its journey.

Business Segment Performance and Strategy

Wakefit operates across three core product categories with distinct growth trajectories. Mattresses contributed 61.3% of revenue for the nine-month period, while furniture showed strong growth at 27.5% year-on-year, contributing 29% of revenues. The furnishings category accounted for 9.7% of total revenue.

Chief Executive Officer Ankit Garg emphasized the company's evolution from a sleep solutions player to a comprehensive home furnishing destination. "We have evolved into a one-stop destination, offering home and furnishing solutions with products tailored to cater to the mass, massige and premium segments," Garg stated during the earnings call.

Omnichannel Expansion and Store Performance

The company's omnichannel strategy continues to deliver strong results, with same-store sales growth exceeding 20% for stores completing at least one year of operations. As of December 2025, Wakefit operated 137 active company-owned company-operated (COCO) stores across 76 cities and nearly 1,700 multi-brand outlets (MBOs) across 453 cities.

Own channels, comprising the website and COCO stores, contributed 64.7% of nine-month sales, providing better margins and customer control.

Fund Management and Investment Strategy

Wakefit maintained its disciplined approach to fund utilization during Q3 FY26. The company's pre-IPO placement of ₹56.00 crore, conducted on November 07, 2025, remained fully unutilized during the quarter, with proceeds strategically deployed in fixed deposits with Axis Bank generating returns between 6.78% and 6.92%.

Similarly, IPO proceeds of ₹377.178 crore showed zero utilization during Q3 FY26, with funds systematically allocated across various investment instruments including 64 separate fixed deposits across HDFC Bank, Yes Bank, and Axis Bank. The diversified investment approach generated total quarterly earnings of ₹0.813 crore.

Leadership Changes and Future Outlook

The company announced the appointment of Parul Gupta as Chief Financial Officer, effective from her joining in August 2025. She replaced Navesh Gupta, who resigned due to personal and professional commitments with his last working day as December 31, 2025.

Looking ahead, management expects to close FY26 with mid-to-high teen revenue growth and continued improvement in operating EBITDA margins. The company anticipates ramping up brand building efforts with advertising and promotion expenses expected to reach 8-9% of sales, returning to historical trends given increased competitive intensity in the category.

Wakefit Innovations Limited has delivered a strong financial performance in Q3 FY26, demonstrating significant growth in revenue and a remarkable turnaround in profitability. The home furnishing company's results for the quarter ended December 31, 2025, reflect improved operational efficiency and market positioning following its recent public listing.

Financial Performance Overview

The company's quarterly performance showed substantial improvement across key metrics:

Nine-Month Performance Highlights

The nine-month period ended December 31, 2025, demonstrated even stronger growth momentum:

Operational Highlights and Business Performance

Wakefit achieved its highest-ever quarterly sales despite market challenges. The sales mix by category for Q3 FY26 comprised Mattresses (62.3%), Furniture (28.7%), and Furnishings (9.0%). The company maintained its direct-to-consumer focus with own channels contributing 64.5% of sales and external channels accounting for 35.5%.

Despite a year-over-year shift in festive-related demand and temporary consumption shifts due to GST 2.0 changes, the company reported normalized growth of approximately 14% for the September-December 2025 period. The company operates 137 active COCO stores as of December 31, 2025.

Capital Structure and IPO Impact

The quarter marked a significant milestone with the completion of Wakefit's Initial Public Offer. Key capital structure changes included:

CFO Appointment and Leadership Changes

Wakefit Innovations Limited has officially appointed Ms. Parul Gupta as Chief Financial Officer with effect from February 10, 2026. The appointment was approved by the Board of Directors and communicated to stock exchanges under Regulation 30 of SEBI Listing Regulations.

Ms. Parul Gupta brings extensive expertise in strategic finance, business partnering, and ensuring robust controls and compliance. Her professional achievements include prestigious recognitions such as the 'Top 30 e-Commerce Leaders Award', 'Women Leadership Award for Excellence in e-commerce', and inclusion among the 'Top 250 Great Managers in India'. She replaces Navesh Gupta, who resigned due to personal and professional plans.

Earnings Conference Call and Investor Communication

Following the announcement of Q3 FY26 results, Wakefit conducted an earnings conference call on February 11, 2026, to discuss the unaudited financial results for the quarter and nine months ended December 31, 2025. The company has made the audio recording of this earnings call available on its website at www.wakefit.co/investor-relations , ensuring transparency and accessibility for investors and stakeholders.

Management Commentary and Future Outlook

Chairman, CEO and Executive Director Ankit Garg highlighted the company's strengthened balance sheet post-IPO and expressed optimism for Q4 FY26 performance. He noted that early indicators suggest Q4 FY26 is shaping up stronger than Q3 across key operating metrics, with the company targeting mid to high teen revenue growth.

Executive Director Chaitanya Ramalingegowda emphasized the company's omnichannel strategy and expansion in the growing Indian home and furnishings market, projected to reach $63-71 billion by 2030. He highlighted that the core mattress business grew steadily at 11.7% while furniture and furnishing categories grew at 35.6% during the September to December 2025 period.

Wakefit reported exceptional items of ₹39.32 million in Q3 FY26, primarily due to the impact of new Labour Codes. The company expects ESOP expenses of approximately ₹50 million in FY26 and ₹120 million in FY27.