Margins Cushion Wakefit’s Profitability Fresh from its IPO, Wakefit reported a profitable Q3 FY26. Despite seasonal discounts and a CFO transition, the D2C furniture and mattress brand clocked record quarterly revenues, alongside a sharp improvement in its margins. Here is a snapshot of Wakefit’s Q3 numbers: Profits stood at ₹31.9 Cr compared to a loss of ₹2.4 Cr in Q3 FY25 Revenue from operations rose 9.4% YoY to ₹421.3 Cr EBITDA improved 158% YoY to ₹70.3 Cr, while margins expanded to 53.8% Total expenses rose a marginal 0.4% YoY to ₹396.7 Cr The Margin Play: The D2C brand flipped to profitability in Q3 on the back of gross margin expansion that offset modest top-line growth and a one-off labour code expense. What also helped was operating leverage kicking in across its core categories, even as management flagged temporary demand shifts tied to GST changes that favour other consumption baskets. The Omnichannel Drift: Wakefit also continued to diversify beyond pure ecommerce in Q3. Own channels drove the majority of sales, giving Wakefit pricing control and customer data depth. Similarly, marketplace presence and new company-owned stores brought incremental reach. On the product front, mattresses remained Wakefit’s undisputed cash cow, while furniture and… Read MoreInc42 Media
