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Wakefit Innovations saw its stock price fall 8% following its Q4 FY26 earnings report, as investors focused on operational challenges despite a reported profit turnaround. The company announced a profit of ₹121.75 crore, swinging from a ₹26.2 crore loss in the same period last year, with revenue up 13.5% to ₹343.6 crore. However, this profit surge was mainly due to a ₹98.07 crore deferred tax asset credit, recognized from reassessing carried-forward losses.
Margin Pressures Amid Falling Demand and Rising Costs
Company executives noted that while demand was strong initially, consumer spending slowed significantly in the latter half of the quarter. This slowdown, combined with higher advertising costs and intense competition, put pressure on profit margins. Wakefit also faced substantial price increases for key raw materials like polyol and TDI, with costs jumping between 30% and 160% by the quarter's end. In response, the company began adjusting prices in March and April to balance cost recovery with sales volume.
FY27 Growth and Sales Strategy
Despite current challenges, Chairman, CEO, and Executive Director Ankit Garg highlighted Wakefit's record revenue for the full fiscal year 2026. The mattress segment grew about 17% year-over-year, and furniture sales increased by a stronger 24%. Garg expressed confidence in continued revenue growth for FY27, with plans to expand its furniture and furnishing products alongside its core mattress business. Wakefit ended FY26 with ₹95.86 crore in cash. The company is expanding its omnichannel presence, operating 139 company-owned stores and a network of 1,948 multi-brand outlets across 536 cities.