25-Oct-2026 21:36:06
WESTLIFE FOODWORLD Q2 CONCALL: MAINTAINS 100–150 BPS ANNUAL PROFITABILITY IMPROVEMENT GUIDANCE, TARGETS 60–65 NEW RESTAURANTS ANNUALLY & OVER 580 OUTLETS BY MARCH 2028
• MANAGEMENT MAINTAINS FY27 PROFITABILITY IMPROVEMENT GUIDANCE AT 100–150 BPS, WITH SIMILAR ANNUAL IMPROVEMENT TARGETED OVER THE MEDIUM TERM • SAME-STORE SALES GROWTH AT 10.1% IN Q2, WITH MANAGEMENT CONFIDENT OF SUSTAINING GROWTH MOMENTUM • REVENUE UP 16% YOY TO ₹747 CR, MARKING STRONGEST TOP-LINE GROWTH IN 13 QUARTERS • OPERATING EBITDA UP 29% YOY, WITH EBITDA MARGIN EXPANDING 130 BPS TO 13.1% • GUEST COUNT RECORDED DOUBLE-DIGIT GROWTH IN ALL THREE MONTHS OF Q2, WITH MOMENTUM EXPECTED TO CONTINUE • MANAGEMENT MAINTAINS HIGH-SINGLE-DIGIT GROWTH AS A MINIMUM ASPIRATION, SUPPORTED BY CUSTOMER TRAFFIC & HIGHER VISIT FREQUENCY • OCTOBER DEMAND REMAINED STRONG, WITH Q2 SALES MOMENTUM CONTINUING INTO THE FESTIVE SEASON • MANAGEMENT TARGETS 60–65 NEW RESTAURANT OPENINGS ANNUALLY VS CURRENT NETWORK OF 492 RESTAURANTS ACROSS 80 CITIES • RESTAURANT NETWORK EXPECTED TO EXCEED 580 OUTLETS BY MARCH 2028, SUPPORTED BY EXPANSION ACROSS EXISTING & EMERGING MARKETS • FY27 CAPITAL EXPENDITURE GUIDED AT ₹250–300 CR, WITH NEW RESTAURANT CAPEX OF APPROXIMATELY ₹3–3.5 CR PER OUTLET • MANAGEMENT EXPECTS ANNUAL PRICE INCREASES OF APPROXIMATELY 2–4%, AIMING TO RECOVER AROUND HALF OF INFLATION THROUGH PRICING • GROSS MARGINS EXPECTED TO REMAIN STABLE UNDER NORMAL CONDITIONS, SUPPORTED BY SUPPLIER NEGOTIATIONS & COST EFFICIENCIES • DELIVERY BUSINESS EXPECTED TO SUSTAIN DOUBLE-DIGIT GROWTH, WITH OWN DELIVERY EXPANSION PLANNED GRADUALLY AFTER VALIDATING MUMBAI ECONOMICS • DIGITAL SALES CONTRIBUTION EXCEEDED 75%, WHILE SOUTH INDIA GROWTH CONTINUES TO RECOVER TOWARD WEST INDIA LEVELS • COMMODITY INFLATION, HIGHER KARNATAKA WAGES & RESTAURANT EXPANSION COSTS REMAIN KEY RISKS, WITH MANAGEMENT FOCUSING ON OPERATING LEVERAGE & COST OPTIMIZATION
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