Westlife Q1: Revenue Rises, Profit Falls
Westlife Foodworld's Q1 FY27 Revenue Rises 12%, But Net Profit Drops 52% Amid Inflation
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Key Points
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Q1 FY27 net profit declined to ₹5.87 million, with basic and diluted earnings per share of ₹0.04, down from ₹12.28 million and ₹0.08 per share a year ago.
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Quarterly revenue stood at ₹7,422.27 million (about ₹742.2 crore), rising about 12% year-on-year from the prior year.
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Precise margins for the quarter: Restaurant Operating Margin of 18.6% and Operating EBITDA Margin of 12.9%, with Cash PAT of ₹517 million (about 7% of sales).
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On-premise sales contributed about 59% of system sales, with continued healthy growth in off-premise channels and McDelivery remaining a key growth engine.
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Inflationary pressures weighed on profitability, with net profit down about 52% YoY to ₹58 lakh; total expenses rose 11.86% to ₹741.43 crore while total income stood at ₹742.23 crore, according to management comments and filings.
Westlife Foodworld, the operator of McDonald's restaurants in West and South India, posted a sharp 52% drop in net profit for Q1 FY27, even as revenue climbed 12% year-on-year. The company earned just ₹5.87 million in net profit — down from ₹12.28 million a year ago — while revenue rose to ₹7,422.27 million, according to MarketScreener.
The results reflect a company caught between strong sales momentum and rising costs. Total expenses jumped 11.86% to ₹741.43 crore, leaving almost no gap between income and outgoings. Revenue and expenses were nearly equal, with total income at ₹742.23 crore, Investment Guru India reported.
Revenue Growth Driven by Value Meals and Guest Counts
The 12% revenue jump was powered by Westlife's Everyday Value platform, which offers meals starting at ₹99. The strategy pulled in more guests and lifted same-store sales growth to 4.3%. Same-store sales measure growth at restaurants open for at least a year — a key health check for any restaurant chain, according to Pitchonnet.
On-premise dining made up about 59% of system sales. Off-premise channels, including McDelivery, continued to grow. The company now runs 482 restaurants across 79 cities. It is targeting 580 to 630 restaurants by December 2027, according to Investment Guru India.
Inflation Squeezes Profit Despite Healthy Operating Margins
Despite strong top-line growth, inflation hit the bottom line hard. Net profit fell from ₹12.28 million to just ₹5.87 million — a drop of roughly 52%. Basic earnings per share fell to ₹0.04, down from ₹0.08 a year ago, MarketScreener reported.
Operating results were more resilient. The restaurant operating margin held at 18.6%. The operating EBITDA margin — a measure of core profit before interest, tax, and depreciation — came in at 12.9%. Cash profit, which strips out non-cash charges, reached ₹517 million, or about 7% of sales. EBITDA also rose about 11% year-on-year.
30-Year Brand Campaign Anchors Long-Term Growth Push
Westlife used the quarter to launch a new brand campaign marking 30 years of McDonald's in India. The campaign leaned into affordability and customer connection. Management pointed to McDelivery and the ₹99 value platform as the twin engines of future growth, according to Investment Guru India.
The company also held an earnings call on July 30, 2026, giving analysts a chance to quiz management on the profit decline and expansion plans, GuruFocus noted. With costs rising fast, investors will be watching whether Westlife can widen the gap between revenue and expenses in the quarters ahead.
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