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Wakefit Innovations held an earnings conference call to discuss its Q4 FY '26 and full-year financial results. Management highlighted strong annual revenue growth to INR1,489 Cr, driven by mattresses (61.4% of revenue, 17% YoY growth) and furniture (29.3% of revenue, 24% YoY growth). The company is expanding into adjacent categories and has amended its MOA to support long-term business expansion. Operational updates included 139 COCO stores across 76 cities and 1,948 MBOs. For FY27, Wakefit targets revenue growth with a focus on its mattress portfolio and expanding furniture/furnishings. The company is managing raw material price volatility through prudent pricing and cost optimization.
Management commentary indicated ongoing demand moderation due to macroeconomic uncertainty, impacting the second half of FY26. They are closely monitoring raw material prices, particularly crude-linked inputs seeing significant inflation (30%-150%), and have implemented price increases (7-8% in March, 7-8% in April) to mitigate this. Advertising and marketing spend is expected to be around 7-8% of sales medium-term. The company aims to protect market share, projecting 20%+ growth, even if it means a 1-2 percentage point impact on EBITDA. Expansion into adjacent categories like home decor aims to complete the product portfolio, especially for upcoming larger stores, without significant immediate financial impact.
In Q&A, management discussed a potential 30% COGS inflation on the mattress division if crude prices remain high. Competitive intensity has increased, with smaller players raising ad spend and matching prices. Wakefit is focused on its own channels (website and COCO stores) for better unit economics and customer data. The company plans to open over 80 net new stores in FY27, with the first of two "Jumbo stores" planned for early FY28. Capex for FY27 is projected at INR120-140 Cr, primarily for retail expansion and the Jumbo store. Wakefit prioritizes repeat and cross-category sales, aiming for long-term customer lifetime value over short-term volume growth. The management conveyed a confident tone regarding market share protection and long-term strategy execution.