Westlife Foodworld Reports Q3FY26 Revenue of ₹6.71 Billion with Margin Expansion
Westlife Foodworld delivered strong Q3FY26 performance with revenue of ₹6.71 billion, demonstrating operational excellence through margin expansion and cost optimization. The company expanded its network by 10 restaurants to 458 outlets across 73 cities while achieving significant digital growth with 3.5 million monthly active users and 74% digital-led sales, positioning well for sustained growth.
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Westlife Foodworld Limited has announced its Q3FY26 financial results for the quarter ended December 31, 2025, demonstrating sustained profitability amid challenging market conditions. The McDonald's franchise operator in West and South India delivered improved operational metrics with revenue of ₹6.71 billion and enhanced margins driven by supply chain efficiencies and cost optimization.
Financial Performance Overview
The company's Q3FY26 results showcase operational discipline with margin expansion across key metrics despite ongoing market headwinds.
| Metric: | Q3FY26 | Performance |
|---|---|---|
| Revenue: | ₹6.71 billion | Steady performance |
| Operating EBITDA: | ₹987 million | +70 bps YoY margin |
| Cash PAT: | ₹583 million | 8.7% of sales |
| Same Store Sales Growth: | -3.2% | Improving trend |
Operational Highlights and Margin Expansion
Westlife demonstrated strong execution discipline with adjusted gross margin expanding by 130 basis points year-on-year, driven primarily by supply chain efficiencies. Restaurant Operating Margin improved by approximately 150 basis points year-on-year, while Operating EBITDA margins increased by 70 basis points, reflecting effective cost optimization despite higher brand and growth investments.
The company prioritized driving affordability through its value platform, with the Everyday Value Meals priced at ₹99 launched in December showing healthy traction. On-premise business grew 6% year-on-year, supported by strong traction for value meals, enhanced digital engagement, and focused hyperlocal marketing initiatives.
Network Expansion and Digital Growth
Westlife added 10 restaurants in Q3FY26, expanding its total footprint to 458 restaurants across 73 cities as of December 2025. The company remains on track to achieve its medium-term target of 580-630 restaurants by 2027, supported by strong penetration across Experience of the Future and McCafé formats.
| Parameter: | Details |
|---|---|
| New Restaurants Added: | 10 in Q3FY26 |
| Total Network: | 458 restaurants |
| City Presence: | 73 cities |
| Monthly Active Users: | ~3.5 million |
| Cumulative App Downloads: | ~50 million |
| Digital-led Sales: | ~74% |
Recovery Momentum and Future Outlook
The quarter showed positive momentum with recovering guest counts, and January demonstrated positive Same Store Sales Growth driven by mid-single digit increase in guest counts. The company's omni-channel ecosystem continued to scale with approximately 3.5 million Monthly Active Users and around 50 million cumulative app downloads, with approximately 74% of sales being digitally led.
Amit Jatia, Chairperson of Westlife Foodworld Limited, commented on the performance: "Our Q3 performance reflects disciplined execution in a challenging demand environment. By strengthening our value proposition, enhancing digital engagement, and maintaining operational rigor, we delivered stable profitability at the back of increased guest counts."
Strategic Initiatives and Brand Performance
The quarter featured successful brand initiatives including the Merry Meal launched during Christmas, which gained significant traction across platforms with merchandise selling out within six days. The company achieved a record-breaking single-day guest count on the McDonald's app, driven by targeted digital campaigns, demonstrating strong digital engagement capabilities.
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