Wakefit Innovati Q1 FY27 Results (NSE: WAKEFIT)
Signal: Steady quarter
The read
The operating trajectory improved in Q1FY27: revenue reached ₹404.91 crore, +16.6% YoY, reported EBITDA excluding other income grew 25.2% with margin up 90bps to 13.9%, and operating EBITDA margin expanded 200bps to 9.1%; however, the ₹23.38 crore PAT and 19.2% growth were less representative because ₹15.62 crore of other income and deferred-tax movements materially affected the bottom line, while management expects the full raw-material cost impact in H1FY27.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹404.91 Cr | +16.6% | N/A |
| EBIT | ₹43.69 Cr | N/A | |
| Net profit | ₹23.38 Cr | +19.2% | |
| EPS | ₹0.71 | N/A | |
| EBIT margin | 13.9% |
P&L walk
Revenue increased to ₹404.91 crore, +16.6% YoY, while reported EBITDA excluding other income rose 25.2% to ₹56.40 crore and margin expanded to 13.9%; gross margin improved 130bps to 57.1% despite Polyol and TDI inflation, but PAT growth of 19.2% to ₹23.38 crore was affected by deferred-tax movements and non-operating income.
Key positives
- Revenue grew 16.6% YoY to ₹404.91 crore, with mattresses growing 27.3% and own-channel revenue growing 20.5%, indicating continued strength in the core category and owned distribution.
- Reported EBITDA excluding other income grew 25.2% YoY to ₹56.40 crore, 8.6 percentage points faster than revenue growth, while margin expanded 90bps to 13.9%.
- Gross margin improved 130bps YoY to 57.1% despite sharp Polyol and TDI inflation, showing that calibrated price hikes provided at least partial input-cost pass-through.
- The company added 27 COCO stores in Q1FY27 to reach 165 stores and expanded its MBO network to 2,250 stores across 701 cities, supporting the planned retail-led expansion.
- Repeat customers contributed 36.7% of revenue, providing evidence of customer retention across the expanded product portfolio.
Key concerns
- Management expects the full impact of higher raw-material costs to reflect in H1FY27, creating a risk that the 57.1% gross margin and 13.9% reported EBITDA margin may not be sustained.
- External-channel revenue grew only 7.6% YoY versus 20.5% growth in own channels, indicating a widening dependence on owned distribution and retail execution.
- Adjusted PAT excluding deferred-tax movements was ₹30.68 crore, up only 1.9% YoY, materially below reported PAT growth of 19.2% and indicating limited underlying bottom-line acceleration.
Earnings quality: includes non-operating other income
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