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). Presenting below are its Q1 FY26 earnings results.
Q1 FY26 Earnings Results
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Revenue: ₹658 crore, up 6.7% year-over-year (YoY) from ₹618 crore in Q1 FY25.
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Net Profit: ₹1.23 crore, down 62.15% YoY from ₹3.25 crore, affected by higher expenses and a soft business environment.
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Same-Store Sales Growth (SSSG): 0.5%, marking the third consecutive quarter of positive performance.
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Operating EBITDA: ₹85.5 crore, up about 7% YoY; margin at 13%.
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Gross Margin: Historic high at 71.6%, up 160bps sequentially, driven by supply chain efficiencies.
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Digital Sales: Account for 75% of total, with strong growth in app and kiosk transactions.
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Restaurants Opened: 9 new locations added in Q1, total now 444 restaurants in 71 cities.
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Dividend: Interim dividend of ₹0.75/share declared.
Management Commentary & Strategic Highlights
“We continue to stay focused on what truly matters: driving guest counts, enhancing value, and building excitement through product innovation while making strategic investments for long-term growth. South India remains a priority, with a strengthened regional leadership team to boost efficiency and drive market share.”
“Gross margin improvement to a historic high of 71.6% resulted from structural supply chain changes. We have created a new vertical for Horizon 2 (long-term initiatives beyond 2027) to sustain market leadership. Our people-first culture was recognized among India’s Top 50 Companies to Work For, further instilling pride in our team. We remain optimistic about improving performance and momentum through FY26.”
— Management Commentary, Q1 FY26
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Digitalization and operational efficiency are highlighted as backbone drivers for future growth.
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Strategic investment in regional leadership and new long-term horizons (“Horizon 2” vertical) to secure market leadership, especially in South India.
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Board remains committed to steady restaurant expansion and value creation for shareholders.
Q4 FY25 Earnings Results
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Revenue: ₹603 crore, up 7.3% YoY.
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Net Profit: ₹1.52 crore, nearly doubled YoY (from ₹0.76 crore).
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Operating EBITDA: ₹79.5 crore, up 3.2% YoY; margin at 13.2%.
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Gross Margin: Stable at ≈70%.
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SSSG: 0.7%, adjusted SSSG 1.7% (excluding leap year impact).
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Digital Sales: Continued robust penetration (75% of total sales), driven by value platforms and operational excellence.
To view the company’s previous earnings and latest concall transcripts, click here to visit the Alphastreet India news channel.