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    Westlife Foodworld Q1 FY27 earnings call

    WESTLIFE
    Consumer Services·30 Jul 2026
    Management Summary

    Westlife Foodworld Limited delivered a strong Q1 FY27 with record revenue and robust same-store sales growth, driven by increased footfall and digital engagement. The South region showed significant turnaround. Despite facing inflationary pressures that impacted margins, management expressed confidence in future improvements through cost governance and strategic pricing, while maintaining its store expansion targets and commitment to shareholder returns.

    Highlights

    5

    • Consolidated revenue reached a record INR 7.36 billion, reflecting a 12% year-on-year growth.

    • Achieved 4.3% same-store sales growth (SSSG), with positive growth across all three months of the quarter.

    • Operating EBITDA increased by 11% year-on-year to INR 946 million.

    • Digital sales contributed 74% to total sales, an increase of 150 basis points year-on-year.

    • The South region showed significant improvement with positive same-store sales growth.

    Concerns

    2

    • Experienced over 200 basis points of inflation across various line items, particularly fuel, food, and packaging.

    • Operating EBITDA margin saw a minor decline compared to last year despite strong topline growth, attributed to unbudgeted inflation.

    Key financials

    Single quarter

    09 metrics
    1. 01Revenue₹736 Cr+12%YoY
    2. 02Same-Store Sales Growth4.3%+4.3%YoY
    3. 03Operating EBITDA₹94.6 Cr+11%YoY
    4. 04Operating EBITDA Margin12.8%
    5. 05Cash PAT₹51.6 Cr

    Capital allocation

    2
    high confidence
    CategoryHeadline
    Capex

    ₹60 stores

    Dividend

    ₹0.4/share (interim)

    Guidance & targets

    6
    CategoryTargetPriority
    Revenue
    Revenue Growth
    close to 15%-plus
    		Medium
    Margin
    EBITDA Margin Improvement
    100, 150 basis point improvement
    		Medium
    Capacity
    New Restaurants Opened
    over 60
    		High
    Capacity
    Total Restaurants
    580 to 630
    		High
    Pricing
    Price Increase
    around 3%
    		High
    Volume
    South Region Same-Store Sales Growth
    mid-single digit
    		Medium

    What to watch in Q2 FY27

    5

    EBITDA Margin Trajectory

    Next quarter
    Current12.85% (minor decline YoY)
    TargetImprovement towards 100-150 bps YoY expansion

    Why it matters

    Management expects margins to improve from Q1's peak inflation impact, which is crucial for overall profitability and meeting annual targets.

    Avi, that's exactly what I also called out in my, when I was talking about it that for us, it is at the highest possible level, and we should see improvements from here on. Even if nothing improves, then it should not go any bad further.

    Risks & concerns

    1
    RiskSeverity

    Inflationary Headwinds

    Over 200 basis points of inflation across fuel, food, packaging, and utilities impacted profitability, but management believes it is temporary and manageable through cost governance and operating leverage. — Management acknowledged

    medium

    Q&A highlights

    8

    “I would not give two- to three-year period because we are living in a VUCA world. We don't know what happens every year. But normal guidance, even in our vision we have given is we would like to have 100, 150 basis point improvement year-on-year.”

    Analyst questioned why strong SSSG isn't leading to more significant margin expansion, and management reiterated the 100-150 bps annual improvement target while citing market volatility.

    asked by Percy Panthaki

    2 min read5 chapters

    Detailed Narrative

    01

    Q1 FY27 Strong Performance Overview

    Westlife Foodworld Limited reported a robust Q1 FY27, achieving a record consolidated revenue of INR 7.36 billion, marking a 12% year-on-year increase. This quarter was characterized by the strongest topline growth, highest same-store sales growth (SSSG) at 4.3%, and fastest guest count growth in recent history. Operating EBITDA grew by 11% to INR 946 million, while Cash PAT stood at INR 516 million, representing 7% of sales.

    02

    Strategic Focus on Value and Footfall Momentum

    The company's strategy remains firmly centered on driving sustainable volume-led growth through its value platform and operational excellence, with the everyday value meal being a key driver of dine-in footfalls. This approach has successfully led to increased consumer acquisition and repeat visits. Digital sales contributed a significant 74% to total sales, reflecting a 150 basis point year-on-year increase, supported by 55 million cumulative app downloads and 3.7 million monthly active users.

    03

    South Region Turnaround and Organizational Realignment

    The South region demonstrated a meaningful turnaround, ending the quarter with positive same-store sales growth, driven by double-digit guest count across all three months. This improvement is attributed to strengthened on-ground execution, local consumer relevance, and network expansion efforts. Furthermore, the company is realigning its operating structure from three to five divisions to foster a sharper, more agile organization closer to market needs.

    04

    Profitability Management Amidst Inflationary Pressures

    Despite strong topline growth, the company navigated significant inflationary headwinds, particularly in fuel, food, and packaging, which resulted in over 200 basis points of inflation across various line items. While gross margin remained stable at 67.6%, operating EBITDA margin experienced a minor decline. Management expressed optimism that cost pressures would ease and anticipates margin improvements going forward⏳, targeting 100-150 basis points year-on-year.

    05

    Network Expansion and Future Outlook

    Westlife Foodworld opened 5 new restaurants in Q1, bringing its total to 482 restaurants across 79 cities. The company remains firmly on track to open over 60 new restaurants in FY27 and achieve its Vision 2027 target of 580 to 630 restaurants by December 2027. An interim dividend of INR 0.40 per equity share was approved, underscoring the company's commitment to creating value for shareholders.

    This is an AI-generated summary of a publicly available earnings call transcript.