Wakefit's raw material bill jumped 160%. It will take a margin hit to keep growing.
CEO Ankit Garg said the company will sacrifice 1-2% of EBITDA margin to defend 20% revenue growth. The inflation is real.
— 3 earlier stories on Wakefit Innovations Ltd. →What's new
- Raw material costs for key chemicals spiked 30-160% since February.
- Wakefit raised prices 15% cumulatively in March and April.
- It paused store expansion in Q4 to recalibrate unit economics.
Why this matters
The company is choosing growth over margin in a sharp inflationary environment. Tolerating a margin cut to defend a 20% top-line target signals that market share is the priority right now. The temporary pause in store expansion suggests the current model needed fixing.
What we're watching
- Whether the 15% price hikes stick as old inventory clears.
- The pace of the planned 80+ new company-owned store rollout in FY27.
- If April demand holds up after the initial post-price-hike spike.
The full read
Raw material costs for key chemicals have jumped 30-160% since February. Wakefit responded with 15% cumulative price hikes in March and April. It's not enough. CEO Ankit Garg laid out the trade-off plainly: the company will tolerate an EBITDA margin cut of 1-2 percentage points to defend revenue growth above 20%. Market share is the priority. The company paused store expansion in Q4 to recalibrate unit economics, but plans a sharp acceleration in FY27 with over 80 new company-owned stores. A&P spend is guided at 7-8% of sales. The test now is whether those price hikes hold as old, cheaper inventory depletes from shelves. April demand was "way better" than the prior quarter, per Garg. The margin pressure, however, is just starting.
Questions answered
- How much did Wakefit raise prices to offset the raw material inflation?
- The company raised prices 15% cumulatively in March and April. This was a direct response to raw material costs for key chemicals jumping 30-160% since February.
- What is the company's priority: margin or growth?
- Growth. Management said it will tolerate a 1-2% hit to EBITDA margin if needed to defend a revenue growth target above 20%. The trade-off is explicit.
- Why did Wakefit pause its store expansion?
- It paused store expansion in Q4 to recalibrate unit economics. The pause is temporary; the company plans to add more than 80 new company-owned stores in FY27.
- What is the outlook for advertising and promotion spend?
- Wakefit expects A&P spend to be 7-8% of sales in FY27. This is part of its plan to accelerate store growth and defend market share.
Wakefit Innovations Ltd.
Latest quarter · Mar 2026
Strength & growth
Story so far
All notes on WAKEFIT →- 22 May 2026 · 10:37 AM IST Wakefit's raw material bill jumped 160%. It will take a margin hit to keep growing.
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