Synopsis: A small-cap QSR company’s shares are in focus today after announcing Strong Q2 results.
A small-cap company that focuses on establishing and operating McDonald’s restaurants across West and South India, is in the spotlight today after posting Q2FY26 results. Read the article below for detailed insights into its performance.
With a market capitalization of Rs. 9,030.46 crore, the shares of Westlife Foodworld Limited were trading at Rs. 580.40, down by 1.33 percent from its previous closing price of Rs. 588.20. In today’s trading session it has touched an intraday low of Rs. 574.
Q2FY26 Results
Westlife Foodworld Limited reported Rs. 641.85 crore in revenue for the second quarter of FY26, a 3.86 percent increase over the Rs. 618 crore for the same period in FY25. It decreased by 2.40 percent as compared to Rs. 657.64 crore in Q1 FY26.
The company’s EBITDA for Q2 FY26 stood at Rs. 67.14 crore, down by 21.3 percent from Rs. 85.32 crore in Q1 FY26, and declined by 11.7 percent from Rs. 76.01 crore in Q2 FY25.
The consolidated net profit for the second quarter of FY26 was Rs. 27.71 crore, which was 2,153 percent higher than the Rs. 1.23 crore reported in the previous quarter and increased by 7,597 percent from Rs. 0.36 crore in Q2 FY25. Profit growth was also reflected in earnings per share (EPS), which increased to approximately Rs. 1.78 in Q2 FY26 from Rs. 0.08 in Q1 FY26 and Rs. 0.02 in Q2 FY25.
Other Highlights
Westlife Foodworld Limited delivered a resilient Q2 FY26 performance despite a challenging consumption environment. The company added eight new restaurants, bringing its total to 450 outlets across 72 cities. Gross margins improved to 72.4 percent, expanding by 270 bps year-on-year and 80 bps quarter-on-quarter, supported by strong supply chain efficiencies and cost controls. Operating EBITDA stood at Rs. 759 million with a margin of 11.8 percent, while Cash PAT was Rs. 80.7 crore, representing 12.6 percent of sales.
Same Store Sales Growth declined by 2.8 percent due to lower industry-wide consumption, though digital channels remained robust, contributing 75 percent of total sales, with the McDonald’s app achieving 47 million downloads and 3 million monthly active users. Backed by menu innovation, disciplined execution, and an omni-channel strategy, the company’s network now includes 108 Drive-thrus, 436 McCafés, and 390 EOTF stores, keeping it firmly on track to meet its Vision 2027 target of 580–630 restaurants by FY27.
Management View
Amit Jatia, Chairperson of Westlife Foodworld Limited, stated that the company’s Q2 performance underscores its focus on strengthening business fundamentals amid a challenging demand environment. He highlighted that innovation, disciplined execution, and operational excellence helped the company navigate market headwinds while reinforcing its medium-term growth trajectory. Jatia emphasized continued investments in menu relevance, omni-channel experiences, and digital leadership as key enablers of sustainable growth and long-term shareholder value.
He also noted the success of innovative launches like the industry-first Protein Plus Slice developed with CSIR-CFTRI, and the affordability-driven McSaver Meals platform. Looking ahead, he expressed confidence that consumption trends will gradually improve with stabilizing inflation, positioning the company to capitalize on growth opportunities and progress toward its Vision 2027 goals.
Analyst Outlook
Macquarie has maintained an Outperform rating on Westlife Foodworld Limited with a target price of Rs. 750 implying an upside of 29.22 percent from CMP.
The brokerage noted that while the company’s EBITDA for Q2 came in below expectations, Westlife continues to invest strategically for long-term growth. However, Macquarie highlighted that demand recovery remains a key factor for performance improvement, expressing concern over limited signs of an industry-wide revival in the quick service restaurant segment.
About the company
Westlife Foodworld Limited formerly Westlife Development Ltd, operates McDonald’s restaurants in West and South India through its subsidiary Hardcastle Restaurants Pvt. Ltd. (HRPL). The company holds the master franchise rights from McDonald’s Corporation USA and focuses on expanding and managing its Quick Service Restaurant (QSR) network across India.
As of September 2025, the company’s shareholding pattern shows that promoters hold 56.25 percent of the total equity, indicating strong promoter ownership. Foreign Institutional Investors (FIIs) hold 10.41 percent, while Domestic Institutional Investors (DIIs) own 24.79 percent. The public shareholding stands at 8.20 percent and others hold 0.35 percent, reflecting a healthy level of retail and institutional participation in the company.
Written By Akshay Sanghavi
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