Westlife Foodworld (505533) Q4 24/25 earnings summary

Executive summary

• Q4 FY25 consolidated sales reached INR 6,032 million, up 7.3% year-on-year, with adjusted same-store sales growth (SSSG) of 1.7% excluding leap year impact.

• The store network expanded to 438 restaurants across 69 cities, with 47 new restaurants opened in FY2025 and 18 added in Q4; the company achieved 100 drive-thru locations.

• Digital sales accounted for 75% of total sales in Q4, supported by robust app engagement and self-ordering kiosks, with off-premise sales making up 43%.

• Strategic focus on value proposition and product innovation, including McSaver combos and limited-time Korean and Mango Burst ranges, drove guest count growth.

• Recognized as top-ranked in India and fifth globally in S&P Global's Corporate Sustainability Assessment for the restaurant sector.

Financial highlights

• Q4 FY25 revenue from operations was INR 6,032 million, up 7.3% YoY; full-year sales at INR 24,911.92 million.

• EBITDA for FY2025 was INR 3,300 million, with Q4 operating EBITDA at INR 795 million (13.2% margin); cash PAT for Q4 was INR 469 million (7.8% margin).

• Gross margin for Q4 remained stable at 70%, with stable input costs.

• Restaurant operating margin and operating EBITDA margin dipped by 30 bps and 50 bps YoY, respectively, due to operating deleverage.

• Profit after tax for FY25 declined to INR 115.495 million from INR 684.938 million in FY24, indicating margin pressures and higher expenses.

Outlook and guidance

• Confident in sustaining positive comparable sales momentum into FY2026, with gradual demand improvement and green shoots visible.

• Committed to vision 2027, targeting 580-630 restaurants, with expansion focused on South India and emerging infrastructure corridors.

• Profitability is expected to improve with higher volumes, targeting 18-20% operating EBITDA margin by 2027.