Transcript of the earnings conference call held on May 22, 2026.
WAKEFIT · price
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Wakefit Innovations reported FY26 revenue of INR1,489 crores, up 17% YoY, with Q4 revenue of INR344 crores growing 13.5%. The company faces significant raw material inflation with chemical prices (polyol, TDI) rising 30-160%, resulting in ~30% COGS basket increase. Management took two price hikes totaling 15% in March and April to mitigate costs, though near-term margin pressure is expected. Gross margin stood at 56% in Q4 and 55.8% for full year. EBITDA margin for FY26 was 12.2%. The company plans to open 80+ net new stores in FY27 with capex of INR120-140 crores, including a large Jumbo store. Own channels now contribute 67.2% of sales. Management indicated competitive intensity has increased from smaller D2C players.
The 15% price increase should help offset raw material inflation but may constrain volume growth in the near term. Near-term margin expansion appears limited given elevated input costs and planned higher advertising spend (7-8% of sales vs 5.7% in FY26). The strong cash position of INR958 crores provides flexibility for expansion.