Wakefit posts ₹724 crore revenue in H1 FY26; returns to profit as IPO draws near

New Delhi / Bengaluru: Wakefit, the home- and sleep-solutions brand preparing to go public, has reported a strong financial performance for the first half of FY26 (ending September 30, 2025), with revenues of ₹724 crore and a return to profitability.

Financial performance at a glance

As per its Red Herring Prospectus (RHP), Wakefit’s operating revenue stood at ₹724 crore in H1 FY26. Non-operating income added another ₹17 crore, bringing total revenue for the period to ₹741 crore.

Total expenses for the period were ₹706 crore. Major cost components included material costs, staff expenses (employee benefit costs ≈ ₹79.5 crore), depreciation (≈ ₹53 crore), and finance costs (≈ ₹15 crore).

The company posted a Profit After Tax (PAT) of ₹35.5 crore — a turnaround from a net loss of about ₹35 crore in FY25.

On a unit-economics basis, Wakefit spent about ₹0.98 to earn every ₹1 of operating revenue in this half.

The company’s reported EBITDA margin was ~ 11.95%, and its ROCE stood at 4.38% for H1 FY26.

What lies ahead — IPO and growth strategy

Wakefit filed its RHP on 30 November 2025. For its upcoming public issue, the company has trimmed down the proposed fresh issue size — now aiming to raise ₹377.2 crore via a fresh issue of shares, along with an Offer For Sale (OFS) of 4.68 crore equity shares.
The fresh funds are likely to be used for store expansion, lease/sub-lease commitments, equipment and machinery investments, and marketing & advertising — part of its ambition to scale its omnichannel presence across India.

Having turned profitable in H1 FY26, Wakefit aims to leverage this momentum to build investor confidence ahead of its listing — while using IPO proceeds to accelerate growth and deepen reach in both online and offline distribution.

Why this is significant — Wakefit’s journey & what it means for the D2C / home-furnishing sector

The turnaround from a net loss in FY25 to a PAT of ₹35.5 crore in H1 FY26 underscores improved operational efficiency and cost controls at Wakefit.

A strong H1 performance ahead of IPO helps set the tone for investor sentiment, especially for D2C / home-furnishing firms looking to go public — a segment where profitability has often eluded companies despite high growth.

Wakefit’s strategy of blending online sales with physical retail stores (omnichannel approach), along with a vertically integrated supply chain (manufacturing + distribution + retail) — positions it as a case study for scaling consumer-furnishing startups in India.

If Wakefit delivers stable growth and maintains profitability, it could pave the way for more home-furnishing / D2C firms to consider public markets — potentially catalysing growth in a larger organised home-furnishing ecosystem in India.

Disclaimer

This article is based on data disclosed in Wakefit’s RHP and publicly available media reports. Financial figures, cost components, IPO size and other details reflect company filings and may be subject to change. Readers should verify from official regulatory filings before forming any opinions or investment decisions.