Wakefit trails Sheela Foam in revenue, profitability and market scale

Wakefit lags behind Sheela Foam on every metric.

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26 Aug, 2025 12:21

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WakeFit Innovations, one of the country’s leading home décor and furnishings players, is gearing up for its Dalal Street debut. At the upper end of its price band, the company would command a post-money market capitalisation of about Rs 6,400 crore, which is roughly on par with its listed peer Sheela Foam. So how does it stack up against its competitor?

WakeFit continues to post strong revenue growth and expanding scale, though profitability remains under pressure with negative PAT in FY25 and modest EBITDA margins. In contrast, Sheela Foam maintains its position as the more profitable player, supported by higher margins, better returns and significantly larger mattress volumes.

Wakefit reported revenue of Rs 1,273.7 crore in FY25, less than half of Sheela Foam’s Rs 3,439 crore. Despite Wakefit’s rapid expansion, its profitability remains weak. The company delivered an EBITDA of Rs 59.1 crore with a margin of 4.6 percent, compared to Sheela Foam’s Rs 286 crore and a healthier 8.3 percent margin.

On the profit front, Wakefit posted an adjusted loss of Rs 35 crore, while Sheela Foam earned Rs 90.07 crore in profit. As a result, Wakefit has no meaningful P/E ratio, whereas Sheela Foam trades at 80.4 times earnings on an FY25 basis. However, in H1FY26, Wakefit did post a profit of Rs 35.6 crore.

Wakefit reported negative RoE and RoCE at -6.7 percent and -5.1 percent in FY25, reflecting strain on capital efficiency. Sheela Foam, though modest, remains positive at 3 percent RoE and 5 percent RoCE.

The core business vertical for both companies, the mattress arm also reflects a similar story. Wakefit generated Rs 781.4 crore from mattresses (61.3 percent of total revenue), whereas Sheela Foam earned Rs 1,377 crore (40 percent of revenue). In volume terms, Sheela Foam sold more than double the number of mattresses, which highlights its deeper market penetration.

Therefore, Sheela Foam, despite slower expansion, maintains a more stable and profitable financial footprint in India’s competitive sleep-solutions market.

What do brokerages say?

"Compared to established peers like Sheela Foam, Wakefit shows negative EPS, negative RoNW, and weaker financial stability. Despite losses, the valuation appears expensive when compared with profitability and return ratios," said Swastika Investmart.

Indsec added that at an upper price band of Rs 195, Wakefit Innovations is valued at a P/S of 4.4x on FY26 annualized basis which is at a significant premium versus its listed peer Sheela Foams (P/S of 1.8x).

The brokerage added that it is cautious due to higher relative valuations versus Sheela Foams (Sleepwell and Kurl-on), dominance of unorganized players, and supply side risk pertaining to raw material imports.

Wakefit Innovations: Issue details

Incorporated in 2016, Wakefit is one of the fastest homegrown players in the home and furnishings market in India among organised peers to achieve a total income of more than Rs 1,000 crore as of March 31, 2024.

Wakefit's Rs 1,289 crore IPO opened for subscription on December 8, 2025 and will close on December 10, 2025. Wakefit proposes to utilise the proceeds from the fresh issue worth Rs 31 crore for setting up 117 new COCO-Regular Stores; Rs 15.4 crore towards purchase of new equipment and machinery; Rs 161.4 crore for expenditure for lease and sub-lease rent and license fee payments for existing stores.

Additionally, Rs 108.4 crore will be used towards marketing and advertisement expenses for enhancing the awareness and visibility of the brand, and the remaining amount will be used for general corporate purposes.