WESTLIFE
Micro CapWESTLIFE FOODWORLD LIMITED
Consumer
Westlife Foodworld Ltd. operates McDonald's restaurants in West and South India through its subsidiary Hardcastle Restaurants Pvt. Ltd. It focuses on multi-category, multi-channel, multi-daypart offerings, with a strategy centered on value, experience, relevance, and network expansion to drive scalable, profitable guest count growth.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Good · 57/100Rev +9% YoY · PAT +57% YoY · operating leverage · margin compression
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹655.4 Cr | +8.7% | -2.3% |
| EBITDA | ₹86.9 Cr | +12.8% | -10.9% |
| Operating margin | 13.3% | +49 bps | -128 bps |
| PAT | ₹2.4 Cr | +56.6% | +133.3% |
| PAT margin | 0.4% | +11 bps | +21 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 sales grew 8.7% YoY with 1.5% SSSG, but full-year FY26 SSSG was negative 1.1%. Operating EBITDA margin remained stable at 13.3% in Q4, supported by cost optimization despite A&P spends.
While Q4 FY26 showed positive SSSG and stable margins, the full-year performance indicates challenges with negative SSSG and flat EBITDA margins. Management's focus on value and digital channels is positive, but sustained growth needs to be demonstrated to justify expansion plans.
Revenue by Channel (Q4 FY26)
Latest issuer-disclosed distribution across 2 reported categories.
Value Platform
Continued focus on strengthening the value platform; the ₹99 meal witnesses positive traction, translating into healthy dine-in guest count momentum.
Digital Sales & Omni-channel
Digital sales grew over 100 bps YoY, led by higher engagement through McDelivery, the McDonald’s app, and Self Ordering Kiosks (SOKs).
Network Expansion
Aggressive and prudent network expansion to penetrate unserved geographies and fortify existing markets.
Brand Building
Strengthened brand connect through relevant campaigns and launched monthly coffee subscription to build habits and drive frequency.
New Store Openings
Added 21 restaurants in Q4 FY26 and 48 new restaurants in FY26, bringing the total network to 478 stores across 78 cities.
Future Store Target
Targeting 60+ restaurants in FY27 and on track to achieve 580-630 restaurants by CY27.
Store Modernization
Achieved 100% EOTF (Experience of the Future) and McCafé penetration in eligible store base, with 25% Drive-Thru restaurants.
Regional Market Performance
West market continued with healthy performance while South has started recovering.
Footfall Growth
On-premise sales grew 9% YoY driven by positive footfall growth across all three months of the quarter.
Commodity Inflation
FY26 saw continued inflationary pressure across key commodities, notably cocoa and coffee.
Operational Risks
Proactively managed operational risks amid the LPG situation, leveraging prior investments in store modernization.
Input Cost Volatility
Continued inflationary pressure on key commodities like cocoa and coffee could impact future margins if not mitigated by supply chain efficiencies.
Execution of Network Expansion
Aggressive store expansion targets (60+ in FY27, 580-630 by CY27) require efficient execution and sustained demand to maintain profitability.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The company reports key financial metrics and operational performance primarily on a year-over-year basis, which is standard for assessing growth and profitability trends in a consumer business, especially given potential seasonality.
Sales Growth
Q4 FY26 Sales: ₹6.55 billion, up 8.7% YoY. FY26 Sales: ₹26.26 billion, up 5.4% YoY.
Same-Store Sales Growth (SSSG)
Q4 FY26 SSSG: +1.5%. FY26 SSSG: -1.1%.
Operating EBITDA Margin
Q4 FY26 Op. EBITDA Margin: 13.3% (vs 13.2% in Q4 FY25). FY26 Op. EBITDA Margin: 13.2% (vs 13.2% in FY25).
Cash PAT Margin
Q4 FY26 Cash PAT Margin: 7.4% (vs 7.7% in Q4 FY25). FY26 Cash PAT Margin: 9.0% (vs 7.6% in FY25).
FY27 Store Opening Target
Management is targeting 60+ new restaurant openings in FY27.
Long-term Store Target
The company is on track to achieve its target of 580-630 restaurants by the year 2027.
Gross Margin Outlook
In the near term, margins are expected to remain in the +67% range (adjusted gross margin).
Strategic Focus
Three strategic focus areas over the medium term are running great restaurants and brand building, cost leadership and operating efficiencies, and network expansion.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Same-Store Sales Growth (SSSG) | 1.5% (Q4 FY26), -1.1% (FY26) | Sustained positive SSSG to indicate underlying demand recovery and effectiveness of value initiatives. |
| New Store Openings | 48 in FY26 | Achievement of the 60+ target for FY27 and progress towards the 580-630 store target by CY27. |
| Adjusted Gross Margin | 68.1% (Q4 FY26 reported), ~67% (Q4 FY26 adjusted) | Stability in the +67% range, indicating effective mitigation of commodity inflation and supply chain efficiencies. |
| Digital Sales Contribution | +76% | Continued growth in digital engagement and its impact on overall sales and customer frequency. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -10.1% / mo · near 52W low
Technical chart
WESTLIFEweekly · 5Y-42.0%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 39. Wait for confirmation.
- SMA20 falling (~11.2% over last month) — short-term momentum negative.
- RSI(14) at 39 — rising, no extreme reading.
- MACD above signal, histogram expanding — bullish momentum building.
- 46% off 52W high · 10% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Cash flow contributes 8/10 to the score.
- Growth contributes 12/25 to the score.
- Balance sheet contributes 2/15 to the score.
Main drags
- Fair-value margin of safety is negative at -170.9%.
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 38th percentile of the scored universe and 37th percentile within Consumer. Main check: financial discipline is weak at 40/100.
Healthy Trust Lite: Promoter holding is 56.4%. Key concern: Debt/equity is 2.92.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 37th pctile, median 67 · Micro: 21st pctile, median 71
0 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 56.4%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 2.1%.
- ▸8 years of positive FCF.
Trust risks
- ▸Debt/equity is 2.92.
- ▸5 recent quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 6.1%.
- ▸ROE is low at 0.8%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- 1308.00
- P/B
- 10.88
- EV/EBITDA
- 15.17
- Market Cap
- 6738.00Cr
Profitability
- ROE
- 0.84%
- ROCE
- 6.11%
- ROA
- 1.13%
- Dividend Y
- 0.17%
Growth (CAGR)
- Revenue 5Y
- 22.00%
- EPS 5Y
- 16.00%
- Revenue 3Y
- 5.00%
- EPS 3Y
- -64.00%
Balance Sheet
- Debt/Equity
- 2.92
- Interest Coverage
- 2.32×
- Altman Z
- 3.52
- Book Value
- 39.70
Cash Flow
- FCF Yield
- 2.23%
- FCF Positive Y
- 8/5
- OCF
- 352.00 Cr
- EPS TTM
- 2.07
Shareholding
- Promoter Hold
- 56.36%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 8%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.