Wakefit Innovations Reports Zero Fund Utilization in Q3 FY26 Monitoring Agency Reports

Wakefit Innovations Limited has submitted comprehensive monitoring agency reports for the quarter ended December 31, 2025, providing detailed insights into the utilization status of its fundraising proceeds. The reports, prepared by CARE Ratings Limited as the appointed monitoring agency, cover both the company's pre-Initial Public Offer (pre-IPO) placement and IPO proceeds, revealing no fund deployment during the quarter across any stated objectives. Pre-IPO Placement Status The pre-IPO placement, conducted on November 07, 2025, raised ₹56.00 crore designated entirely for general corporate purposes. The monitoring report indicates zero utilization during Q3 FY26, with the complete amount strategically deployed in fixed deposits. Parameter: Details Issue Amount: ₹56.00 crore Issue Date: November 07, 2025 Utilization During Quarter: ₹0.00 crore Unutilized Amount: ₹56.00 crore Investment Strategy: Fixed deposits with Axis Bank The unutilized proceeds are invested across seven fixed deposits with Axis Bank, ranging from ₹5.00 crore to ₹9.00 crore each, with maturity dates extending from November 2026 to November 2026. These investments are generating returns between 6.78% and 6.92%, with total earnings of ₹0.473 crore during the quarter. IPO Proceeds Management Wakefit's IPO, conducted from December 08-10, 2025, raised ₹377.178 crore across multiple strategic objectives. The monitoring report confirms no utilization during Q3 FY26, with funds systematically allocated across various investment instruments. Objective: Allocated Amount (₹ crore) Utilization (₹ crore) Status COCO Store Setup: 30.842 0.00 Unutilized Lease Payments: 161.469 0.00 Unutilized Equipment Purchase: 15.408 0.00 Unutilized Marketing Expenses: 108.404 0.00 Unutilized General Corporate: 33.073 0.00 Unutilized Issue Expenses: 27.982 0.00 Unutilized Investment Deployment Strategy The company has adopted a diversified approach for managing unutilized IPO proceeds, spreading investments across multiple banking institutions and tenure periods. The deployment includes 64 separate fixed deposits across HDFC Bank, Yes Bank, and Axis Bank, with varying maturity periods extending through 2028. Key Investment Highlights: HDFC Bank fixed deposits: Multiple ₹3.00 crore deposits at 6.45% returns Yes Bank investments: Deposits ranging from ₹12.00-14.40 crore at 6.50-7.00% returns Axis Bank placements: Various amounts with returns between 4.00-6.40% Public issue account balance: ₹27.982 crore Total quarterly earnings: ₹0.813 crore Implementation Timeline and Regulatory Compliance The monitoring agency confirmed that all fund deployments align with offer document disclosures, with no deviations observed. For COCO store establishments, the company will obtain routine governmental approvals including shops and establishments registrations, trade licenses, and fire safety certificates as required. The planned implementation schedule spans multiple fiscal years: FY27: ₹17.024 crore for new COCO stores, ₹56.561 crore for lease payments FY28: ₹13.818 crore for stores, ₹55.254 crore for leases, ₹48.404 crore for marketing FY29: ₹35.883 crore for lease payments, ₹20.00 crore for marketing CARE Ratings Limited noted that no technical assistance is required for the stated objectives, though the company will collaborate with marketing agencies and local consultants for store location scouting and approval processes. The monitoring agency found no unfavorable events affecting project viability and confirmed no material information that could impact investor decision-making. The reports demonstrate Wakefit's systematic approach to fund management while maintaining regulatory compliance and transparency in proceeds utilization reporting. Wakefit Innovations Limited has delivered a strong financial performance in Q3 FY26, demonstrating significant growth in revenue and a remarkable turnaround in profitability. The home furnishing company's results for the quarter ended December 31, 2025, reflect improved operational efficiency and market positioning following its recent public listing. Financial Performance Overview The company's quarterly performance showed substantial improvement across key metrics: Metric: Q3 FY26 Q3 FY25 Change (%) Revenue from Operations: ₹4,213.40 million ₹3,851.75 million +9.4% Total Income: ₹4,325.06 million ₹3,924.25 million +10.2% Net Profit/(Loss): ₹318.56 million ₹(24.08) million Turnaround Basic EPS: ₹1.01 ₹(0.08) Positive Reported EBITDA: ₹703.40 million ₹272.50 million +158.1% Operating EBITDA: ₹416.40 million ₹79.70 million +422.7% Nine-Month Performance Highlights The nine-month period ended December 31, 2025, demonstrated even stronger growth momentum: Parameter: 9M FY26 9M FY25 Growth (%) Revenue from Operations: ₹11,453.43 million ₹9,710.86 million +17.9% Total Income: ₹11,733.99 million ₹9,943.65 million +18.0% Net Profit/(Loss): ₹674.30 million ₹(88.09) million Turnaround Basic EPS: ₹2.16 ₹(0.29) Positive Reported EBITDA: ₹1,735.40 million ₹764.00 million +127.1% Operational Highlights and Business Performance Wakefit achieved its highest-ever quarterly sales despite market challenges. The sales mix by category for Q3 FY26 comprised Mattresses (62.3%), Furniture (28.7%), and Furnishings (9.0%). The company maintained its direct-to-consumer focus with own channels contributing 64.5% of sales and external channels accounting for 35.5%. Despite a year-over-year shift in festive-related demand and temporary consumption shifts due to GST 2.0 changes, the company reported normalized growth of approximately 14% for the September-December 2025 period. The company operates 137 active COCO stores as of December 31, 2025. Capital Structure and IPO Impact The quarter marked a significant milestone with the completion of Wakefit's Initial Public Offer. Key capital structure changes included: IPO Details: Specifications Total Shares Offered: 66,096,866 equity shares Issue Price: ₹195 per share Fresh Issue: 19,342,461 shares Offer for Sale: 46,754,405 shares Listing Date: December 15, 2025 Total Amount Raised: ₹12,889 million Investable Cash: ₹8,891.80 million CFO Appointment and Leadership Changes Wakefit Innovations Limited has officially appointed Ms. Parul Gupta as Chief Financial Officer with effect from February 10, 2026. The appointment was approved by the Board of Directors and communicated to stock exchanges under Regulation 30 of SEBI Listing Regulations. Appointment Details: Information Position: Chief Financial Officer (Key Managerial Personnel) Effective Date: February 10, 2026 Authorization: Materiality determination and stock exchange disclosures Qualifications: Chartered Accountant, ISB Hyderabad alumna Experience: Nearly 20 years in leadership roles Previous Companies: Syngene, Myntra, Jabong, Aircel, Airtel Ms. Parul Gupta brings extensive expertise in strategic finance, business partnering, and ensuring robust controls and compliance. Her professional achievements include prestigious recognitions such as the 'Top 30 e-Commerce Leaders Award', 'Women Leadership Award for Excellence in e-commerce', and inclusion among the 'Top 250 Great Managers in India'. She replaces Navesh Gupta, who resigned due to personal and professional plans. Management Commentary and Future Outlook Chairman, CEO and Executive Director Ankit Garg highlighted the company's strengthened balance sheet post-IPO and expressed optimism for Q4 FY26 performance. He noted that early indicators suggest Q4 FY26 is shaping up stronger than Q3 across key operating metrics, with the company targeting mid to high teen revenue growth. Executive Director Chaitanya Ramalingegowda emphasized the company's omnichannel strategy and expansion in the growing Indian home and furnishings market, projected to reach $63-71 billion by 2030. He highlighted that the core mattress business grew steadily at 11.7% while furniture and furnishing categories grew at 35.6% during the September to December 2025 period. Wakefit reported exceptional items of ₹39.32 million in Q3 FY26, primarily due to the impact of new Labour Codes. The company expects ESOP expenses of approximately ₹50 million in FY26 and ₹120 million in FY27. 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