Wakefit’s Q3 Show, Fi Money Pivots & More

Core Insights - Wakefit has reported a profitable Q3 FY26, achieving record quarterly revenues and significant margin improvements despite seasonal discounts and a CFO transition [1][4] Financial Performance - Profits reached ₹31.9 Cr compared to a loss of ₹2.4 Cr in Q3 FY25 [8] - Revenue from operations increased by 9.4% YoY to ₹421.3 Cr [8] - EBITDA improved by 158% YoY to ₹70.3 Cr, with margins expanding to 53.8% [8] - Total expenses rose marginally by 0.4% YoY to ₹396.7 Cr [8] Margin Expansion - The transition to profitability in Q3 was driven by gross margin expansion that offset modest top-line growth and a one-off labor code expense [2] - Operating leverage across core categories contributed to the margin improvement, despite temporary demand shifts due to GST changes [2] Omnichannel Strategy - Wakefit is diversifying beyond pure e-commerce, with own channels driving the majority of sales, enhancing pricing control and customer data depth [3] - The company has expanded its marketplace presence and opened new company-owned stores to increase reach [3] - Mattresses remain the primary revenue driver, while furniture and furnishings are gradually increasing their share [3] Post-IPO Stability - Wakefit has shown resilience post-IPO, attributed to ongoing offline store rollouts and a structured public issue that balanced fresh capital with an offer for sale (OFS) [4] - The market is closely monitoring Wakefit's ability to maintain profitability in upcoming quarters [4]