Westlife Foodworld (505533) Q1 25/26 earnings summary

Executive summary

• Revenue grew 6.7% year-over-year to INR 6.58 billion, with positive same-store sales growth for the third consecutive quarter at 0.5% YoY, driven by stable guest count and average check.

• Achieved third consecutive quarter of positive comparable sales, reinforcing confidence in strategic direction.

• Store network expanded to 444 restaurants across 71 cities, with 9 new openings and 3 closures in Q1 FY26.

• Digital sales contributed around 75% of total, with app downloads reaching 44 million life-to-date and strong engagement across platforms.

• Interim dividend of INR 0.75 per equity share declared, with record date set for August 4, 2025.

Financial highlights

• Consolidated revenues reached INR 6.6 billion, up 7% year-over-year.

• Gross margin improved to a historic high of 71.6%, up 160 basis points sequentially.

• Operating EBITDA grew 6.9% YoY to INR 855 million, with margin stable at 13.0%.

• Cash profits after tax stood at INR 474 million, or 7.2% of sales.

• Restaurant operating margin increased to 19.9% from 19.1% YoY.

Outlook and guidance

• Vision 2027 targets 580-630 restaurants, with a robust store development pipeline and margin guidance unchanged.

• Profitability expected to improve with higher volumes, aiming for 18-20% Op. EBITDA margin by 2027.

• Remain optimistic about improving momentum through the year, with a focus on holistic value and customer-centric strategies.