Westlife Foodworld (505533) Q4 25/26 earnings summary

Executive summary

• Q4 FY26 revenue grew 8.7% year-on-year to INR 6.55 billion, with 1.5% same-store sales growth and positive guest count momentum driven by value offerings and brand campaigns.

• FY26 revenue reached INR 26.3 billion, up 5.4% year-on-year, with sustained profitability and digital sales contributing 76% of total sales.

• Network expanded to 478 locations with 48 new restaurants in FY26, and guidance for 60+ annual openings targeting 580–630 outlets by 2027.

• Digital engagement, McCafé initiatives, and app-based promotions drove higher customer frequency and brand affinity.

• Ranked 6th globally in the S&P Global Corporate Sustainability Assessment and included in the Sustainability Yearbook 2026.

Financial highlights

• Q4 consolidated revenue: INR 6.6 billion, up 9% year-on-year; FY26 revenue: INR 26.3 billion, up 5% year-on-year.

• Q4 FY26 operating EBITDA was INR 870 million (13.3% margin); FY26 operating EBITDA reached INR 3.47 billion (13.2% margin).

• Gross margin for Q4 at 68.1%, up 60 bps sequentially; full-year gross margin at 67.7%, up 140 bps year-on-year.

• Restaurant operating margin for FY26 grew to 20.3%; cash PAT for FY26: INR 2.4 billion (9% of sales); Q4 cash PAT: INR 487 million (7.4% of sales).

• Consolidated profit after tax for FY26 was ₹3,233.20 lakhs, compared to ₹1,214.67 lakhs in FY25.

Outlook and guidance

• Guidance to open 60+ restaurants annually, targeting 580–630 outlets by 2027.

• Gross margin expected to remain above 67% amid inflationary pressures, with focus on cost optimization and digital engagement.

• Vision 2027 targets EBITDA margin improvement to 13–15% through operating leverage and sales growth.

• Monitoring regulatory changes, especially new labour codes, with adjustments as needed.