Wakefit Innovations Limited has submitted comprehensive monitoring agency reports for the quarter ended December 31, 2025, providing detailed insights into the utilization status of its fundraising proceeds. The reports, prepared by CARE Ratings Limited as the appointed monitoring agency, cover both the company's pre-Initial Public Offer (pre-IPO) placement and IPO proceeds, revealing no fund deployment during the quarter across any stated objectives.

Pre-IPO Placement Status

The pre-IPO placement, conducted on November 07, 2025, raised ₹56.00 crore designated entirely for general corporate purposes. The monitoring report indicates zero utilization during Q3 FY26, with the complete amount strategically deployed in fixed deposits.

The unutilized proceeds are invested across seven fixed deposits with Axis Bank, ranging from ₹5.00 crore to ₹9.00 crore each, with maturity dates extending from November 2026 to November 2026. These investments are generating returns between 6.78% and 6.92%, with total earnings of ₹0.473 crore during the quarter.

IPO Proceeds Management

Wakefit's IPO, conducted from December 08-10, 2025, raised ₹377.178 crore across multiple strategic objectives. The monitoring report confirms no utilization during Q3 FY26, with funds systematically allocated across various investment instruments.

Investment Deployment Strategy

The company has adopted a diversified approach for managing unutilized IPO proceeds, spreading investments across multiple banking institutions and tenure periods. The deployment includes 64 separate fixed deposits across HDFC Bank, Yes Bank, and Axis Bank, with varying maturity periods extending through 2028.

Key Investment Highlights:

• HDFC Bank fixed deposits: Multiple ₹3.00 crore deposits at 6.45% returns
• Yes Bank investments: Deposits ranging from ₹12.00-14.40 crore at 6.50-7.00% returns
• Axis Bank placements: Various amounts with returns between 4.00-6.40%
• Public issue account balance: ₹27.982 crore
• Total quarterly earnings: ₹0.813 crore

Implementation Timeline and Regulatory Compliance

The monitoring agency confirmed that all fund deployments align with offer document disclosures, with no deviations observed. For COCO store establishments, the company will obtain routine governmental approvals including shops and establishments registrations, trade licenses, and fire safety certificates as required.

The planned implementation schedule spans multiple fiscal years:

• FY27: ₹17.024 crore for new COCO stores, ₹56.561 crore for lease payments
• FY28: ₹13.818 crore for stores, ₹55.254 crore for leases, ₹48.404 crore for marketing
• FY29: ₹35.883 crore for lease payments, ₹20.00 crore for marketing

CARE Ratings Limited noted that no technical assistance is required for the stated objectives, though the company will collaborate with marketing agencies and local consultants for store location scouting and approval processes. The monitoring agency found no unfavorable events affecting project viability and confirmed no material information that could impact investor decision-making.

The reports demonstrate Wakefit's systematic approach to fund management while maintaining regulatory compliance and transparency in proceeds utilization reporting.

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.

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.