Wakefit, India’s listed mattress and home furnishing brand, announced a nearly flat net profit of ₹15.9 crore for Q2 FY27, while revenues rose 20% year-on-year to ₹452 crore amid a challenging operating environment marked by rising commodity prices and geopolitical disruptions.
- Q2 net profit steady at ₹15.9 crore year-on-year
- Revenue grows 20% to a record ₹452 crore
- Retail footprint expanded with 41 new stores in Q2
What happened
Wakefit posted a net profit of ₹15.9 crore in Q2 FY27, nearly unchanged from ₹16 crore in the same quarter last year but down 32% sequentially from the previous quarter. This decline was attributed to rising commodity prices, particularly in crude-linked raw materials such as Polyol and TDI, as well as supply chain disruptions caused by geopolitical tensions in West Asia.
Despite the operating challenges, Wakefit's total operating revenue increased by approximately 20% year-over-year to a record ₹452 crore. Mattresses remained the largest revenue contributor accounting for 66%, while furniture, furnishings, and décor contributed the remaining 38%. The company also saw an 11.6% quarter-on-quarter growth in revenue and expanded its retail presence by opening 41 new company-owned stores during the quarter.
Why it matters
The results highlight Wakefit’s resilience in navigating inflationary pressures and supply chain complexities while continuing to grow its top line and improve operational metrics. Operating EBITDA rose 25.8% year-over-year to ₹30.5 crore with an improved margin of 6.7%, signaling better underlying profitability despite external headwinds.
With total expenses rising in tandem with revenue by 19%, including increased taxation and deferred tax changes, Wakefit’s ability to sustain earnings reflects disciplined cost management. The ongoing expansion of retail stores and multi-brand outlets underlines the company’s focus on scaling its omnichannel presence to drive sales growth in India’s competitive home furnishing market.
What to watch next
Investors will be closely monitoring Wakefit’s next quarters for signs of margin recovery as commodity prices stabilize and the company leverages its retail expansion, including its new jumbo stores. Its FY27 capital expenditure plans of ₹100-120 crore, mainly aimed at retail growth, are on track with the upcoming launch of its Bengaluru jumbo store expected in Q2 FY28.
The impact of geopolitical developments in West Asia and global crude price trends will remain key risk factors affecting raw material costs and supply chain stability. Additionally, Wakefit’s ability to sustain double-digit revenue growth while controlling rising expenses will be critical for maintaining profitability momentum in an increasingly competitive environment.