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Tag: financial

  • Info Edge Reports ₹791 Crores in Q1 FY26 Revenue; Profit Soars by 32%

    Info Edge Reports ₹791 Crores in Q1 FY26 Revenue; Profit Soars by 32%



    Info Edge Sees Strong Growth in Q1 FY26

    Info Edge Sees Strong Growth in Q1 FY26

    Info Edge, known for its flagship platforms Naukri and 99acres, has recorded a remarkable 17% increase in operating revenue during the first quarter of the ongoing fiscal year (Q1 FY26). The company’s profit surged by 32% during the same period.

    Revenue Growth Overview

    The Noida-based enterprise’s operating revenue climbed to Rs 791 crore in Q1 FY26, up from Rs 677 crore in Q1 FY25, based on information sourced from the National Stock Exchange (NSE).

    When examining quarter-on-quarter performance, Info Edge’s operating revenue experienced a 5.5% increase, rising from Rs 750 crore in Q4 FY25 to Rs 791 crore in Q1 FY26.

    Contributions from Different Segments

    Info Edge derives a substantial portion of its income from Naukri.com, which alone contributed Rs 562 crore in the quarter ending June 2025, reflecting a 15% year-on-year increase compared to Q1 FY25. Revenue from 99acres reached Rs 111 crore, while Jeevansathi and Shiksha brought in Rs 34 crore and Rs 50 crore respectively in the same quarter.

    Additionally, the company accrued Rs 213 crore from interest on deposits and investments, elevating its total revenue to Rs 1,004 crore in Q1 FY26.

    Expense Analysis

    On the expenditure side, Info Edge allocated 58% of its total spending to employee benefits, which increased by 12% year-on-year to Rs 327 crore in Q1 FY26. The costs associated with advertising and internet stood at Rs 127 crore and Rs 22 crore, respectively. Overall, the company’s costs rose by 16% year-on-year to Rs 564 crore in Q1 FY26, up from Rs 485 crore in Q1 FY25.

    Profit and EBITDA Performance

    Info Edge’s profit reached Rs 343 crore in Q1 FY26, marking a 32% rise compared to Rs 259 crore in Q1 FY25. The earnings before interest, taxes, depreciation, and amortization (EBITDA) was recorded at Rs 468 crore during this period.

    Current Market Position

    As of 2:22 PM on Friday, August 8, Info Edge’s shares are trading at Rs 1,333.5, reflecting a 2% decrease from the day’s opening price. The firm maintains a market capitalization of Rs 86,277 crore (approximately $9.8 billion).


  • MapMyIndia Achieves Rs 122 Crore in Revenue for Q1 FY26, with Profits Rising by 28%

    MapMyIndia Achieves Rs 122 Crore in Revenue for Q1 FY26, with Profits Rising by 28%


    MapMyIndia Financial Update: Q1 FY26 Results

    MapMyIndia, under its parent company CE Info Systems, has shared its financial results for the first quarter of FY26. The report indicates a remarkable year-on-year revenue growth exceeding 21% compared to Q1 FY25.

    In Q1 FY26, MapMyIndia reported operational revenue rising to Rs 122 crore, up from Rs 101 crore recorded in Q1 FY25, as detailed in its consolidated quarterly report available through the National Stock Exchange (NSE).

    Quarterly Financial Performance

    On a quarter-on-quarter basis, however, MapMyIndia experienced a 15% decline in operating revenue, which decreased from Rs 144 crore in Q4 FY25 to Rs 122 crore in Q1 FY26.

    Major Revenue Sources

    The company’s primary revenue generators include digital map data, GPS navigation, location-based services, and IoT, which collectively contributed 93% to the total revenue. This segment saw a 23% increase, generating Rs 114 crore in Q1 FY26. Conversely, revenue from device sales amounted to Rs 8 crore for the quarter ending June 2025.

    Cost Analysis

    The significant costs associated with IoT devices, employee benefits, and outsourced technical services resulted in a total expenditure of Rs 73 crore during Q1 FY26, rising from Rs 64 crore in the same quarter of the previous fiscal year.

    Profit Margins

    Diving into profitability, MapMyIndia achieved a substantial 28% profit increase, reaching Rs 46 crore in Q1 FY26, compared to Rs 36 crore from the first quarter of FY25. Furthermore, the company’s EBITDA for this quarter stood at Rs 68 crore.

    Strategic Investments

    In Q1 FY26, MapMyIndia made key strategic investments, including Rs 25 crore to elevate its stake in IoT subsidiary Gtropy Systems from 75.98% to 96%, underscoring its commitment to fleet technology and telematics. Additionally, the company invested Rs 25 crore to acquire a 0.049% stake in Zepto, enhancing its footprint in the burgeoning quick commerce sector.

    Market Position

    As of the close on 7th August 2025, MapMyIndia shares settled at Rs 1,759.9 each, resulting in a market capitalization of Rs 10,040 crore (approximately $1.09 billion).

  • MapMyIndia Reports ₹122 Crore Revenue and 28% Profit Surge in Q1 FY26

    MapMyIndia Reports ₹122 Crore Revenue and 28% Profit Surge in Q1 FY26


    MapMyIndia Reports Impressive Q1 FY26 Financial Results

    MapMyIndia, under the umbrella of CE Info Systems, has revealed its financial outcomes for the first quarter of FY26, showcasing a remarkable year-on-year revenue increase of over 21% when compared to Q1 FY25. The operational revenue surged to Rs 122 crore in Q1 FY26 from Rs 101 crore in Q1 FY25, as indicated in the consolidated quarterly report obtained from the National Stock Exchange (NSE).

    Quarterly Revenue Analysis

    In terms of quarter-on-quarter performance, MapMyIndia observed a decline in operational revenue by 15%, dropping to Rs 122 crore in Q1 FY26 from Rs 144 crore in Q4 FY25.

    Major Revenue Streams

    MapMyIndia’s primary income came from digital map data, GPS navigation, location-based services, and IoT, which collectively accounted for 93% of the overall revenue. This income segment experienced a 23% increase, amounting to Rs 114 crore in Q1 FY26. Additionally, the sale of devices contributed Rs 8 crore during the quarter ending in June 2025.

    Cost Structure

    The principal components affecting the cost structure included IoT devices, employee benefits, and outsourced technical services. Consequently, the total expenses of the company rose to Rs 73 crore in Q1 FY26, up from Rs 64 crore in Q1 FY25.

    Profit Growth

    As a result of increased operations, MapMyIndia noted a 28% rise in profitability, reaching Rs 46 crore in Q1 FY26, compared to Rs 36 crore in the same quarter of the prior fiscal year. The company’s EBITDA for the quarter was recorded at Rs 68 crore.

    Investments in Subsidiaries

    During Q1 FY26, MapMyIndia allocated Rs 25 crore to enhance its investment in IoT subsidiary Gtropy Systems, raising their stake from 75.98% to 96%. This move underscores the company’s commitment to fleet technology and telematics. Furthermore, MapMyIndia invested an additional Rs 25 crore in Zepto, acquiring a 0.049% stake to bolster its involvement in the rapidly expanding quick commerce sector.

    Stock Market Performance

    As of the close of trading on 7th August 2025, MapMyIndia’s shares were priced at Rs 1,759.9 each, resulting in a market capitalization of Rs 10,040 crore ($1.09 billion).

  • Tracxn Reports 12% Decline in Q1 FY26 Profits; Revenue Stays Steady

    Tracxn Reports 12% Decline in Q1 FY26 Profits; Revenue Stays Steady


    Tracxn Financial Results for Q1 FY26

    Data and research platform Tracxn has revealed its financial outcomes for the first quarter of the current fiscal year (Q1 FY26) on Thursday. The company’s revenue experienced a slight growth of 3.4% during this period, while profits witnessed a decline of 12.6%.

    The revenue from operations for Tracxn rose by 3.4% to Rs 21.2 crore in Q1 FY26, compared to Rs 20.5 crore in the same quarter of the previous fiscal year (Q1 FY25), as per the financial statements obtained from the National Stock Exchange (NSE).

    When compared quarter-on-quarter, Tracxn’s operating revenue remained stable at Rs 21.2 crore in Q1 FY26, aligning closely with Rs 21.14 crore reported in Q4 FY25.

    The entire operating revenue for Tracxn was derived from subscription sales, which provide access to its data and software. Nevertheless, the Bengaluru-based company did not disclose a detailed revenue breakdown for the reported quarter.

    Additionally, Tracxn generated Rs 1.68 crore from non-operating sources, bringing its total revenue to Rs 22.88 crore in the first quarter.

    Employee benefits emerged as the primary cost centre for Tracxn, making up 88% of the total expenditure. This expense has risen by 7% year-on-year, increasing to Rs 18.95 crore in Q1 FY26 from Rs 17.67 crore in Q1 FY25. Overall, Tracxn’s total costs expanded by roughly 6%, reaching Rs 21.43 crore in Q1 FY26.

    The company’s profit after tax has dropped to Rs 1.11 crore in Q1 FY26 from Rs 1.27 crore in Q1 FY25. However, Tracxn reported a profit before tax amounting to Rs 1.45 crore.

    As of the end of Thursday’s trading session, Tracxn’s share price was at Rs 56.24, reflecting a market capitalization of Rs 604 crore ($69 million).

  • Bluestone Reports 56% Increase in Losses for FY25; Online Sales Constitute Only 7% of Revenue

    Bluestone Reports 56% Increase in Losses for FY25; Online Sales Constitute Only 7% of Revenue



    Bluestone IPO Reduction in Size Amid Increased Losses

    Bluestone IPO Reduction in Size Amid Increased Losses

    Bluestone, a vertically integrated jewellery brand, has announced a reduction in the size of its IPO according to its Red Herring Prospectus (RHP). This decision comes at a time when the company is facing a 56% year-on-year rise in losses that outstripped revenue growth in the last fiscal year (FY25).

    Financial Performance Overview

    Bluestone’s revenue from operations saw a remarkable increase of 40% year-on-year, reaching Rs 1,770 crore in the fiscal year ending March 2025, compared to Rs 1,266 crore in FY24, based on the restated financial statement provided in the RHP.

    Revenue Streams

    The company’s primary revenue source comes from the sale of jewellery, including diamonds, gold, platinum, gemstones, and pearls, with an average order value (AOV) of Rs 47,671 in FY25. This growth trajectory was attributed to enhanced store maturity and a diversified product portfolio. Based in Bengaluru, the company operated a total of 275 stores across 117 cities in 26 states and union territories by March 2025.

    Sales Channels

    Online sales accounted for merely 6.66% of total sales, indicating that the majority of income was derived from physical stores and other channels.

    Expense Analysis

    On the expense side, Bluestone’s cost of materials was the largest expenditure, rising by 46% to reach Rs 1,098 crore, which represented 54% of total expenses. Employee benefit expenses increased by 47% to Rs 203 crore, while advertising costs rose by 28% to Rs 159 crore compared to FY24. Additional operational and finance expenses accounted for Rs 643 crore, tabulating total expenses to rise by 42% to Rs 2,050 crore in FY25, up from Rs 1,446 crore in FY24.

    Net Loss and EBITDA

    As Bluestone’s expenses escalated at a quicker pace than its revenue growth, its net loss widened by 56% to Rs 222 crore in FY25, up from Rs 142 crore in FY24. Nevertheless, the company managed to achieve a positive EBITDA of Rs 133 crore, with an EBITDA margin of 7.27% in the last fiscal year.

    Operational Efficiency

    On a per-unit basis, the company incurred costs of Rs 1.16 to earn every rupee of operating revenue in FY25. By March 2025, Bluestone’s current assets stood at Rs 2,130 crore, inclusive of Rs 187 crore in cash and bank balances.

    Strategic Investments

    In FY25, Bluestone pursued two strategic investments. The company acquired a controlling interest in Ethereal House Private Limited (EHPL) for Rs 17 crore and subscribed to shares in Redefine Fashion Private Limited for Rs 11 crore. Notably, EHPL was devoid of operations or significant assets; thus, this acquisition was categorised solely as a corporate control transaction without goodwill or asset revaluation. As a result, all figures from FY25 are consolidated, while FY24 figures reflect the standalone balance sheet.


  • Blackbuck Reports ₹144 Crore Revenue in Q1 FY26, with 17% Surge in Profits

    Blackbuck Reports ₹144 Crore Revenue in Q1 FY26, with 17% Surge in Profits



    Blackbuck Reports 57% Growth in Q1 FY26 – Financial Highlights

    Blackbuck Reports 57% Growth in Q1 FY26

    Blackbuck, a prominent online trucking platform, has unveiled its financial performance for the first quarter of the fiscal year ending March 2026. The Bengaluru-rooted business has achieved an impressive 57% year-on-year growth in scale for Q1 FY26, with a reported profit of Rs 34 crore during this period.

    Revenue Growth and Sources

    In terms of revenue from operations, Blackbuck has experienced significant growth, rising to Rs 144 crore in Q1 FY26 from Rs 92 crore in the same quarter of the previous fiscal year, as outlined in its financial statements sourced from the National Stock Exchange.

    Quarter-on-Quarter Analysis

    When evaluating performance on a quarter-on-quarter basis, Blackbuck’s operating revenue surged by 18%, increasing to Rs 144 crore in Q1 FY26 from Rs 122 crore in Q4 FY25.

    Revenue Composition

    The primary segment contributing to this revenue surge was the truck operator services, which represented 98% of total operating revenue. Additionally, Blackbuck earned Rs 16 crore from interest income, bringing the overall revenue to Rs 160 crore in Q1 FY26 compared to Rs 98 crore during the same quarter last year.

    Expense Analysis

    Examining the expenses, employee benefit costs constituted 32% of the total outlay, which saw a year-on-year decrease of 5%, amounting to Rs 37 crore in Q1 FY26, down from Rs 39 crore in Q1 FY25.

    Depreciation and other operational costs were significant overheads, which resulted in total expenditure reaching Rs 114 crore in Q1 FY26, as opposed to Rs 92 crore in the corresponding quarter of the previous year.

    Profit Growth

    Blackbuck’s net profit experienced a 17% increase, amounting to Rs 34 crore in Q1 FY26, compared to Rs 29 crore in Q1 FY25.

    Stock Market Performance

    Upon debuting on the stock market at Rs 208.90, Blackbuck is currently trading at Rs 481.85 (as of 15:26 PM), resulting in an overall market capitalization of Rs 8,670 crore ($1 billion).


  • Smartworks Reports Rs 1,374 Crore Revenue with Rs 62 Crore Loss for FY25

    Smartworks Reports Rs 1,374 Crore Revenue with Rs 62 Crore Loss for FY25



    Smartworks Reports 32% Growth in Operating Revenue or Rs 1,374 Crore in FY25

    Smartworks Announces 32% Growth in Operating Revenue to Rs 1,374 Crore in FY25

    Smartworks, a prominent managed workspace provider, announced a remarkable 32% increase in operating revenue, reaching Rs 1,374 crore in FY25. However, the company also experienced a 26% rise in losses during the same period.

    Financial Performance of Smartworks in FY25

    According to financial data from the RHP, Smartworks’ revenue from operations rose by 32% to Rs 1,374 crore in FY25, up from Rs 1,039 crore in FY24. The company specializes in offering flexible office spaces for large enterprises, SMEs, and emerging startups, utilising its powerful phygital platform to provide fully serviced, technology-driven, flexible, and cost-effective workspaces.

    Revenue Breakdown

    Lease rentals made up over 93% of the operating revenue, which increased by 29% to Rs 1,289 crore in FY25. Other revenue streams included design and fit-out services at Rs 35 crore, ancillary services at Rs 49 crore, and a minor Rs 1 crore from software fees. Additionally, Smartworks garnered Rs 36 crore from non-operating sources, bringing the total revenue to Rs 1,410 crore in FY25.

    Expense Analysis

    Examining the expense structure, the primary cost was depreciation, which surged by 35% to Rs 636 crore, followed closely by operating expenses at Rs 416 crore. Finance costs remained largely unchanged at Rs 336 crore, while employee benefit expenses increased to Rs 65 crore. Overall, total expenses saw a 26% rise to Rs 1,489 crore in FY25, up from Rs 1,180 crore in FY24.

    Profitability Metrics

    Even with the revenue growth, Smartworks’ losses escalated by 26% to Rs 63 crore in FY25, compared to Rs 50 crore in FY24. Nevertheless, the company reported a positive EBITDA of Rs 893 crore in FY25, showcasing an EBITDA margin of 63.3% and a return on capital employed (ROCE) of 7.48%.

    Unit Efficiency

    Smartworks recorded a unit cost of Rs 1.08 to generate a rupee of operating revenue in FY25, slightly better than the previous year’s figure of Rs 1.14.

    Current Assets and IPO Plans

    Based in Gurugram, the company reported current assets amounting to Rs 255 crore in FY25, which includes Rs 69 crore in cash and bank balances. Smartworks is set to enter public markets with its Rs 583 crore IPO, scheduled to open on July 10 and close on July 14, 2025. The company has established a price range of Rs 387 to Rs 407 per share, with a lot size of 36 shares, requiring a minimum investment of Rs 14,652 for retail investors.


  • Curefoods Achieves ₹746 Crore Revenue in FY25, Dessert Segment Sees 95% Surge

    Curefoods Achieves ₹746 Crore Revenue in FY25, Dessert Segment Sees 95% Surge


    Curefoods Files for IPO Amidst Revenue Growth

    Cloud kitchen brand Curefoods has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). This action follows the company’s financial performance in FY25, where it reported revenues of Rs 746 crore and a loss of Rs 170 crore, as detailed in its balance sheet.

    The operating revenue of Curefoods saw a rise of 28%, growing from Rs 585 crore in FY24 to Rs 746 crore in FY25. However, the losses remained unchanged in the last fiscal year, as presented in the financial statement within the DRHP.

    Curefoods’ Diverse Offerings and Revenue Breakdown

    Curefoods is engaged in a multi-brand cloud kitchen operation, offering a range of products, including Indian meals, pizzas, desserts, and health-oriented food. In FY25, the desserts segment led the revenue, generating Rs 196 crore, closely followed by pizzas at Rs 183 crore, Indian meals at Rs 178 crore, and healthy meals at Rs 176 crore. While desserts and pizzas experienced growth rates of 18% and 95% YoY, respectively, the healthy segment witnessed a decline of 13%.

    Additionally, the Bengaluru-based company accrued Rs 29 crore from interest on financial assets, elevating its total income to Rs 775 crore in FY25.

    Expense Analysis for Curefoods

    On the expense front, the cost of materials constituted the largest portion, amounting to Rs 273 crore, followed by employee benefits at Rs 180 crore and commissions at Rs 137 crore. Advertising expenses surged significantly by over 64%, reaching Rs 87 crore. Overall, Curefoods’ total expenditure for FY25 was Rs 944 crore, marking a 17% increase from Rs 807 crore in FY24.

    Despite the revenue increase, the company’s loss remained consistent at Rs 170 crore in FY25, down slightly from Rs 173 crore in FY24. Its Return on Capital Employed (ROCE) and EBITDA margin were recorded at -19% and -7.5%, respectively. On a unit basis, Curefoods incurred a cost of Rs 1.27 for every rupee of operating revenue in FY25.

    Current Assets and Leadership Compensation

    As of March 2025, led by Ankit Nagori, the company had current assets amounting to Rs 339 crore, which included Rs 80 crore in cash and bank balances. The founder Nagori’s fixed annual remuneration stands at Rs 3 crore, along with a variable bonus potential of up to 20% of his salary.

    Operational Performance and Brand Highlights

    Curefoods’ operational performance saw improvement in FY25, with average daily sales increasing to Rs 2 crore from Rs 1.5 crore in FY24, driven by robust consumer demand for its brands. Among its ten key brands, Sharief Bhai, EatFit, and CakeZone contributed significantly to revenues, with Rs 148 crore, Rs 145 crore, and Rs 102 crore, respectively. Furthermore, the company expanded its revenue channels by launching Krispy Kreme operations in South, West, and North India, generating Rs 15 crore in FY25 after acquiring the franchise rights.

    Challenges Ahead for Curefoods

    The improving numbers suggest a maturation of the business, which supports the decision to pursue a public listing. Nevertheless, challenges linger, particularly relating to the performance of the ‘Healthy Foods’ segment and the Krispy Kreme franchise, which has not yet fully succeeded in the Indian market. Previous attempts by other international dessert brands, such as Dunkin Donuts, have faced obstacles despite support from local entities, underscoring the difficulties encountered in capturing local consumer interest.

    As Curefoods continues to adopt a multi-brand strategy, its profitability potential remains untested, and the first half of FY26 could serve as a pivotal period to assess whether the company has identified a viable route to profitability.

  • Wakefit Reports ₹971 Crore Revenue for First Nine Months of FY25 Amid Audit Concerns on Historical Finances

    Wakefit Reports ₹971 Crore Revenue for First Nine Months of FY25 Amid Audit Concerns on Historical Finances



    Wakefit’s IPO Announcement: Financial Insights and Audit Concerns


    Wakefit’s IPO Announcement: Financial Insights and Audit Concerns

    Wakefit, a prominent brand known for home and sleep solutions, has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) in preparation for an Initial Public Offering (IPO).

    Financial Performance Overview

    In its balance sheet, Wakefit disclosed a revenue of Rs 971 crore for the first nine months of FY25, ending on December 31, 2024. Despite this positive performance, auditors have expressed concerns regarding discrepancies in the financial statements.

    Revenue Breakdown

    Wakefit’s operating revenue reached Rs 971 crore within the nine-month span of FY25, closely approaching the Rs 986 crore earned throughout FY24. A significant portion of this revenue stemmed from the sale of manufactured goods, which constituted over 97% of its operating income at Rs 951 crore. Additional revenue sources included sales of traded goods and other income, elevating total income to Rs 994 crore in the first nine months of FY25.

    Expense Analysis

    The primary contributor to expenses was the cost of materials, accounting for 43% of total costs at Rs 433 crore. Employee benefits totalled Rs 126 crore, while the company also invested Rs 82 crore in advertising and Rs 75 crore on delivery costs during this period. Other overheads, such as depreciation and IT expenses, added further to the overall cost, resulting in a total of Rs 1,003 crore in expenses for the nine months of FY25, compared to Rs 1,032 crore in FY24.

    Profitability and Financial Metrics

    Wakefit reported a loss of Rs 9 crore in the nine months of FY25, an improvement from a loss of Rs 15 crore in FY24. Despite this, the company highlighted a positive EBITDA of Rs 76 crore, translating to an EBITDA margin of 7.65% during the same period. Additionally, its return on capital employed (ROCE) was noted at 1.33%.

    Unit Economics

    On a unit level, it cost Wakefit Rs 1.03 to generate a rupee of revenue during the nine-month period. The company currently holds assets worth Rs 577 crore, which includes Rs 19 crore in cash and bank balances.

    Auditor Concerns in the DRHP

    Upon reviewing the DRHP, auditors highlighted various issues, including mismatches between financial records and bank filings, late statutory payments with disputes over GST dues, and the absence of an internal audit system. Additionally, the company revealed cash losses over the past three financial years. For FY24, shortcomings in its accounting software regarding the mandatory audit trail feature were noted.

    Future Implications

    While these observations did not necessitate amendments to its reported financials, Wakefit cautioned that similar findings in the future may adversely affect its reputation and financial stability. The company also stated that it employs various non-GAAP financial metrics including EBITDA, adjusted EBITDA, and return on capital employed to evaluate performance. Wakefit advised stakeholders to consider these figures with caution as they may not align with standard industry definitions and could differ from those reported by competitors. Investors are encouraged to focus on the audited financials as per statutory accounting norms.


  • Wakefit Reports ₹971 Crore Revenue for First Nine Months of FY25 Amid Audit Concerns on Historical Finances

    Wakefit Achieves ₹971 Crore Revenue in First Nine Months of FY25 Amid Auditor Concerns on Financial Health



    Wakefit Submits DRHP for IPO with Financial Insights

    Wakefit Submits DRHP for IPO with Financial Insights

    Wakefit, a brand known for its home and sleep solutions, has presented its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) for an Initial Public Offering (IPO). The organization recorded a revenue of Rs 971 crore during the initial nine months of FY25, ending on December 31, 2024. However, the auditors expressed concerns regarding the financial statements.

    Financial Performance Overview

    Wakefit’s operating revenue reached Rs 971 crore in the first nine months of FY25, closely paralleling the Rs 986 crore reported for the entire FY24. This impressive topline was primarily fuelled by the sale of manufactured goods, which constituted over 97% of its operating income, amounting to Rs 951 crore. Additional revenue sources included the sale of traded goods and other income, elevating the total income to Rs 994 crore during the nine months of FY25.

    Expenditure Breakdown

    On the expense front, the cost of materials emerged as the principal cost driver, representing 43% of overall expenses at Rs 433 crore. Employee benefits accounted for Rs 126 crore, while spending included Rs 82 crore on advertising and Rs 75 crore related to delivery expenses during this period. Other operational costs, such as depreciation and IT expenses, further contributed to the expense base. Ultimately, total expenses amounted to Rs 1,003 crore in the nine months of FY25, compared to Rs 1,032 crore in FY24.

    Profit and Loss Summary

    Wakefit recorded a loss of Rs 9 crore in the first nine months of FY25, an improvement from the loss of Rs 15 crore reported in FY24. Nonetheless, the company achieved a positive EBITDA of Rs 76 crore, boasting an EBITDA margin of 7.65% during the same timeframe. Its return on capital employed (ROCE) stood at 1.33%.

    Unit Level Insights and Auditor Observations

    At the unit level, the company expended Rs 1.03 to generate each rupee of revenue throughout the 9-month period. Current assets were valued at Rs 577 crore, comprising Rs 19 crore in cash and bank balances.

    Delving deeper into the DRHP, auditors highlighted discrepancies such as mismatches between financial records and bank submissions, overdue statutory payments including disputed GST dues, and the lack of an internal audit system. Additionally, the company experienced cash losses over the past three financial years. Notably, in FY24, the accounting software was found to lack the necessary audit trail feature.

    Future Implications

    Although these auditor observations did not necessitate adjustments to the reported financials, Wakefit warned that similar comments in the future could adversely affect its reputation and financial health. The company also disclosed its use of various non-GAAP financial metrics like EBITDA, adjusted EBITDA, and return on capital employed to monitor performance. Wakefit cautioned that these figures might not align with standard industry definitions and could differ from those of competitors, urging investors to consider the audited financials under statutory accounting guidelines.