Capital expenditure for setting up of 117 new COCO Regular Stores (₹ 30.84 Cr.)
Expenditure for lease, sub-lease rent, and license fee payments for existing COCO - Regular Stores (₹ 161.47 Cr.)
Marketing and advertising expenses to enhance brand awareness and visibility (₹ 108.40 Cr.)
Our View
Incorporated in 2016, Wakefit started as a direct-to-consumer mattress brand and has expanded into a full home-furnishings company including furniture and home décor essentials. The company has a logistics network comprising one central mother warehouse, 7 inventory holding points (“INHPs”) and 18 points of delivery (“PODs”) as of September 30, 2025, positioned to optimize logistics and distribution.
Risks to consider include intense competition, historical losses, raw material & supply chain volatility, brand vulnerability and reputational risk, revenue concentration (~60% from mattresses), distribution channel concentration (website and COCO stores), regulatory risk, relationships with online marketplaces, and a working capital-intensive business model which may impact cash flows and results of operations.
Financially, topline grew at a CAGR of 25% between FY23-25. The bottom line was negative for the last three years but turned positive in H1FY26. At HYFY26, EBITDA & PAT margins stood at 14.25% and 4.91% respectively. The working capital cycle improved from 20 days (FY23) to 1.04 days at H1FY26.
The issue is priced at a P/BV of 10.89 based on NAV of Rs. 17.9 as at HYFY26. If FY26 annualised earnings are attributed, the implied P/E is around 85x versus an industry average of ~77x, indicating aggressive pricing. At the upper price band (₹195), the company seeks a market capitalization of over ₹6,370 crore.
Wakefit’s leading D2C model (mattresses, furniture, home décor) needs sustained profitability from H1FY26 levels for long-term success. Considering opportunities, risks and valuation, high-risk investors may consider subscribing with a long-term horizon.
Financial Snapshot & Valuation
Topline CAGR (FY23-25): 25%
EBITDA Margin (H1FY26): 14.25%
PAT Margin (H1FY26): 4.91%
Working capital cycle improved to 1.04 days (H1FY26) from 20 days (FY23)
P/BV: 10.89 (NAV Rs. 17.9 at HYFY26)
Indicative P/E (annualised FY26): ~85x (industry ~77x)
Note: Issue pricing is aggressive relative to industry multiples; investors should weigh growth vs. valuation carefully.
Key Risk Factors (Summary)
Intense competition in D2C home & furnishings
Loss-making history (turned positive only in H1FY26)
Raw material and supply chain volatility
Brand vulnerability and reputational risk
Revenue concentration (~60% from mattresses)
Distribution channel concentration (website & COCO stores)
Working capital intensity
Frequently Asked Questions (FAQs)
When does the Wakefit IPO open and close?
The Wakefit IPO opens on December 8, 2025 and closes on December 10, 2025.
What is the price band for the Wakefit IPO?
The price band is ₹185 to ₹195 per equity share.
What is the lot size and minimum application amount?
The lot size is 76 shares. Minimum application amount is ₹14,820 (76 shares).
Is Wakefit profitable?
Wakefit was loss-making historically but reported positive EBITDA & PAT in H1FY26. Investors should check sustainability of margins going forward.
Should I apply for this IPO?
Sushil Finance view: High risk investors may apply for a long-term horizon. Conduct due diligence before applying.
Brief Financials
| PARTICULARS |
₹ in Million |
As at
June 30, 2025 |
FY ‘25 |
FY ‘24 |
FY ‘23 |
| Total Income |
7,413.01 |
13,054.26 |
10,173.34 |
8,200.09 |
| Total Expenditure |
7,057.27 |
13,404.30 |
10,323.87 |
9,656.92 |
| EBITDA |
1,031.94 |
908.30 |
658.49 |
(857.52) |
| Profit/(Loss) before Tax |
355.74 |
(350.04) |
(150.53) |
(1,456.83) |
| Profit/(Loss) after Tax |
355.74 |
(350.04) |
(150.53) |
(1,456.83) |
| E.P.S. (Diluted) |
1.14* |
(1.15) |
(0.50) |
(5.62) |
| P/E (x) (Diluted) |
- |
- |
- |
- |
| ROCE (%) |
6.38* |
(6.72) |
(2.77) |
(28.84) |
*Not annualised
PRICE CHART (@ ₹ 195) (Retail Category)
| LOT SIZE |
| Amount |
| 76 |
14,820 |
| 152 |
29,640 |
| 228 |
44,460 |
| 304 |
59,280 |
| 380 |
74,100 |
| 456 |
88,920 |
| 532 |
103,740 |
| 608 |
118,560 |
| 684 |
133,380 |
| 760 |
148,200 |
| 836 |
163,020 |
| 912 |
177,840 |
| 988 |
192,660 |
HNI Payment Chart
| Category |
| No. of Shares |
Minimum Bid Lot Amount (Rs.) |
| Small HNI |
1,064 |
207,480 |
| Big HNI |
5,168 |
1,007,760 |
Indicative Time Table
| Tentative Events |
| Indicative Dates |
| Finalisation of Basis of Allotment with the Designated Stock Exchange |
11/12/2025 |
| Initiation of refunds/unblocking ASBA Fund |
12/12/2025 |
| Credit of Equity Shares to demat accounts of Allottees |
12/12/2025 |
| Commencement of trading of the Equity Shares on the Stock Exchanges |
15/12/2025 |
Disclaimer:
The content provided in this blog is for informational and educational purposes only and should not be construed as investment, legal, or tax advice. While Sushil Finance makes reasonable efforts to ensure accuracy and reliability of the information, we do not guarantee its completeness or timeliness. Readers are advised to consult with their financial advisor before making any investment decisions. Sushil Finance shall not be held responsible for any direct or indirect loss arising from use of this content. Investments in securities are subject to market risks. Read all scheme-related documents carefully before investing.
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