Westlife Foodworld (505533) Q3 25/26 earnings summary

Executive summary

• Q3 FY26 revenue grew 2.6% YoY to INR 6.71 billion, with stable guest counts despite a challenging environment and positive momentum in late Q3 and January.

• On-premise sales grew 6% YoY, while delivery declined slightly due to aggregator volatility, partially offset by McDelivery app growth.

• Aggressive guest count growth was driven by value meals, digital engagement, and hyperlocal marketing, contributing to record guest counts and brand relevance.

• Unaudited consolidated and standalone financial results for the quarter and nine months ended December 31, 2025, were reviewed and approved by the Board on February 4, 2026.

• The group operates McDonald's restaurants in West and South India through its wholly owned subsidiary, with all operations considered a single business segment.

Financial highlights

• Consolidated revenue for Q3 FY26 was INR 6.71 billion (₹67,071.66 lakh), up 2.6% YoY; nine-month revenue grew 4.4% YoY.

• Operating EBITDA rose 8% YoY to INR 987 million, with a margin of 14.7%.

• Cash PAT for the quarter was INR 583 million, representing 8.7% of sales, up 12.2% YoY.

• Same-store sales growth (SSSG) declined 3.2% YoY.

• Restaurant operating margin improved by 150 bps YoY to 22.1%.

Outlook and guidance

• Targeting 580-630 restaurants by 2027, with 10 new stores added in Q3 and 20-25 new restaurants expected to open in Q4.

• Early signs of guest count recovery are encouraging, but management is cautious about calling a sustained revival until more consistent momentum is observed.

• The company continues to monitor the impact of new labour codes and will adjust accounting as further government guidance is issued.

• Continued focus on disciplined network expansion, digital engagement, and value proposition to drive long-term growth.