Westlife Development Limited (WDL) focuses on establishing and operating McDonald’s restaurants across West and South India, through its wholly owned subsidiary Hardcastle Restaurants Pvt Ltd (HRPL).
Today, It manages 319 McDonalds restaurants and 223 McCafé outlets in West and South India in easily accessible and popular locations like malls, high-streets, shopping complexes and residential areas’ after outlet presence. It employees close to 10,000 employees.
Q3 FY26 Earnings Results
- Revenue from Operations: ₹670.7 cr for Q3 FY26, +2.6% YoY (vs ₹653.7 cr in Q3 FY25).
- EBITDA / Operating Profit (Pre-exceptional): ₹97.5 cr, with operating margin 14.6%, marking a YoY margin expansion on cost discipline.
- PBT (before Tax & Exceptional): ₹11.69 cr, +80% YoY before one-time impacts.
- PAT / Net Profit (after exceptional items): ₹1.02 cr, -85% YoY vs ₹7.01 cr in Q3 FY25 (exceptional labour code impact ~₹9.68 mn weighed on earnings).
- EPS: ₹0.07 (low due to profit contraction).
- Network / SSSG: Added 10 restaurants in Q3 (total 458 across 73 cities); Same-Store Sales Growth (SSSG) declined 3.2% YoY, though guest counts showed recovery later in the quarter.
Management Commentary & Strategic Decisions
- Management noted that the Q3 performance reflects disciplined execution amid a challenging demand environment, with improvements in guest counts since November and guest engagement via digital and value offerings supporting relative operational stability.
- Despite top-line growth, net profit was sharply lower on account of elevated interest costs, depreciation and the incremental impact of the new labour codes, these exceptional and non-operating costs substantially compressed PAT margins.
- The company reaffirmed its medium-term target of reaching 580-630 restaurants by 2027, supported by penetration of Experience of the Future (EOTF) and McCafé formats, aiming to drive traffic and revenue per store.
Q2 FY26 Earnings Results
- Revenue from Operations: ₹642 cr, +3.9% YoY vs Q2 FY25, stable top-line growth.
- EBITDA / Operating Profit: Operating EBITDA ₹75.9 cr; Operating EBITDA Margin: 11.8%, with gross margin expansion due to supply chain efficiencies.
- PAT / Cash PAT: Standalone results showed Cash PAT ₹80.7 mn (~12.6% of sales); adjusted cash PAT ~₹42.1 mn after exceptional items.
- Other key metrics: Digital sales comprised 75%+ of total sales, with loyalty and mobile engagement driving customer retention.
Management Commentary Q2
- Management emphasised resilience in revenue despite a challenging out-of-home consumption environment, crediting cost optimisation, menu innovation, and omni-channel strength for sustaining gross and operating margins.
- Strategic focus remained on affordability offerings and digital engagement to counter subdued consumer demand and drive return visits as part of Vision 2027 expansion goals.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.