Westlife Foodworld Q1 revenue climbs 12%; profit slips amid margin pressure

Westlife Foodworld

, which operates McDonald's restaurants across West and South India, reported a mixed start to FY27 as steady sales growth was offset by weaker profitability and a modest contraction in operating margins. While the company continued to benefit from higher customer spending and network expansion, earnings remained under pressure, prompting a muted reaction from investors.

The company reported revenue of ₹735.6 crore for the June quarter, up 12% from a year ago. EBITDA increased 9% to ₹92.9 crore, although EBITDA margin narrowed to 12.6% from 13% in the corresponding quarter last year.

Net profit fell 52% year-on-year to ₹0.59 crore from ₹1.23 crore, reflecting pressure on profitability despite healthy topline growth.

Following the announcement, shares of Westlife Foodworld slipped to an intraday low of ₹472 before recovering some of the losses to trade at ₹489.60 during Thursday's session.

Alongside its quarterly results, the board declared an interim dividend of ₹0.40 per equity share of face value ₹2 each. The company has fixed August 7, 2026, as the record date to determine eligible shareholders, while the dividend will be paid on or before August 29.

The latest quarterly performance comes as Westlife continues to execute an ambitious expansion strategy aimed at strengthening its presence across existing and new markets. Earlier this year, Chief Executive Officer Akshay Jatia said the company expects demand momentum to improve further and is targeting mid- to high-single-digit same-store sales growth over the coming year.

The company also plans to add more than 60 McDonald's restaurants during FY27 as part of its Vision 2027 roadmap. Besides expanding its physical footprint, management is focusing on growing digital ordering channels, delivery, and the McCafe business to drive both customer engagement and long-term profitability.

Jatia had also highlighted that the company's value-focused pricing strategy, menu innovation and customer experience remain central to its growth plans. While temporary LPG-related disruptions affected a small proportion of restaurants, he said fewer than 10% of outlets were impacted because of operational measures such as the use of electric fryers.

Management had indicated in May that the improving demand trend seen over recent quarters had carried into the new financial year, and the June quarter revenue growth suggests that consumer demand has remained resilient despite a competitive quick-service restaurant landscape.

The focus for investors will now be on whether Westlife can translate its expanding store network and improving same-store sales into stronger profitability over the coming quarters while staying on course to achieve its longer-term revenue and margin aspirations.