Westlife Foodworld posts Rs 27.7 cr profit in Q2

New Delhi, Nov 3 (PTI) Westlife Foodworld, operator of McDonald's restaurants in west and south India, on Wednesday reported a multifold jump in consolidated net profit to Rs 27.7 crore for the September quarter of FY26, helped by gains from exceptional items.

The company had reported a consolidated net profit of Rs 35 lakh in the July-September period a year ago, according to a regulatory filing from Westlife Foodworld.

But for the gains from exceptional items and tax, the company incurred a loss of Rs 15.85 crore during the quarter.

Its sales were up 3.6 per cent at Rs 637.48 crore during the quarter under review. It was at Rs 615.35 crore in the corresponding quarter a year ago.

Total expenses of Westlife Foodworld in the quarter were up 7.15 per cent to Rs 668.40 crore.

Its "gross margins expanded by 270 bps YoY and 80 bps QoQ to reach 72.4 per cent, owing to sustained supply chain efficiencies and cost optimisation initiatives," the company said in its earnings statement.

Westlife Foodworld's total income, which includes other incomes, was up 4.5 per cent to Rs 652.55 crore in the September quarter.

"During the quarter ended September 30, 2025, the company has completed a redevelopment transaction involving one of its ownership store properties located in Mumbai. As part of this transaction, the company transferred its rights in the existing store property in exchange of alternate store property and some monetary consideration, resulting in net aggregate gain of Rs 58.16 crore," it said.

Moreover, Westlife Foodworld also had an impairment of Rs 5.36 crore in exceptional item of investment done by its wholly owned subsidiary HRPL.

Westlife, as part of expansion, added eight new McDonalds restaurants in the quarter, bringing the total restaurant count to 450 across 72 cities as of September, 2025.

For the first half (H1) of FY26, Westlife total income was at Rs 1,316.99 crore, up 5.7 per cent on a year-on-year basis.

Commenting on the results, Chairperson Amit Jatia said, "Our Q2 results reflect our continued focus on strengthening business fundamentals amidst a challenging demand landscape. We navigated market headwinds through innovation, disciplined execution, and operating excellence." Westlife Foodworld, formerly known as Westlife Development operates quick service restaurants (QSR) in India through its subsidiary Hardcastle Restaurants Pvt Ltd. It has a master franchisee relationship with McDonald's Corporation USA to operate a chain of McDonald's restaurants in west and south India.

Shares of Westlife Foodworld Ltd on Monday settled at Rs 585.65 on the BSE, down 1.62 per cent from the previous close. PTI KRH TRB