Westlife Foodworld Reports Significant Net Profit Jump Driven by Exceptional Gain; Revenue Grows Marginally

Consumer Products

Updated on 03 Nov 2025, 10:47 am

Reviewed By

Aditi Singh | Whalesbook News Team

Short Description :

Westlife Foodworld Limited, the operator of McDonald's outlets in West and South India, reported a net profit of ₹28 crore for the September quarter, a substantial increase from ₹36 lakh in the same period last year. This surge was primarily due to an exceptional gain of ₹58 crore. While revenue grew 4% to ₹642 crore, supported by store growth and same-store sales, the company's operating performance weakened, with EBITDA declining 11% to ₹67.3 crore and EBITDA margins shrinking to 10.5%.

Westlife Foodworld Reports Significant Net Profit Jump Driven by Exceptional Gain; Revenue Grows Marginally

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Stocks Mentioned :

Westlife Foodworld Limited

Detailed Coverage :

Westlife Foodworld Limited announced its financial results for the September quarter, highlighting a dramatic increase in net profit. The company posted a net profit of ₹28 crore, a significant leap from ₹36 lakh recorded in the corresponding quarter of the previous year. This sharp rise in the bottom line was largely driven by a substantial exceptional gain of ₹58 crore recognized during the quarter, a factor absent in the prior year.

Revenue for the period saw a modest increase of 4%, reaching ₹642 crore from ₹618 crore in the prior year. This growth was attributed to consistent performance in same-store sales and the addition of new restaurant locations.

However, the company's core operating performance showed signs of strain. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) fell by 11% to ₹67.3 crore, down from ₹75.8 crore in the year-ago period. Consequently, the EBITDA margin contracted to 10.5% from 12.3% in the same quarter last year, indicating pressure on profitability from operations.

Impact: The net profit figures are significantly boosted by a one-time exceptional gain, which masks a weakening in the company's operational efficiency and profitability as indicated by the decline in EBITDA and margins. Investors will need to assess the sustainability of revenue growth against the backdrop of declining operating profitability. Rating: 7/10

Difficult terms: Net Profit: The profit remaining after all expenses and taxes have been deducted from total revenue. Exceptional Gain: A profit from an unusual or infrequent event that is not part of the company's ordinary operations. Revenue: The total income generated by the sale of goods or services related to the company's primary operations. EBITDA: Earnings Before Interest, Taxes, Depreciation, and Amortization. A measure of a company's operating performance. EBITDA Margin: EBITDA divided by Revenue, expressed as a percentage. It indicates operational profitability. Same-store growth: The increase in revenue from existing stores that have been open for a year or more.