Interest and depreciation leave Westlife with Rs 0.59 cr profit
Operating margin at 12.63% trailed the 15.3% sector-peer median, while other income exceeded reported pre-tax profit.
Filed 30 Jul 2026, 13:13 IST · Westlife Foodworld Ltd (WESTLIFE)
Key takeaways
- Interest of Rs 38.77 cr and depreciation of Rs 59.96 cr reduced Rs 92.92 cr operating profit to Rs 0.79 cr before tax.
- Other income of Rs 6.59 cr exceeded profit before tax of Rs 0.79 cr, making reported profit quality weak.
- Operating margin of 12.63% was 2.67 percentage points below the 15.3% median for 42 reported Consumer Discretionary peers.
Price around the results
Interest and depreciation absorbed operating profit
Consolidated Q1FY27 operating profit of Rs 92.92 cr was largely absorbed by interest of Rs 38.77 cr and depreciation of Rs 59.96 cr, leaving profit before tax at Rs 0.79 cr. Other income of Rs 6.59 cr was more than seven times reported pre-tax profit, so the Rs 0.59 cr net profit was not supported mainly by operating earnings.
Operating margin remained below the peer median
Westlife’s 12.63% operating margin was 2.67 percentage points below the 15.3% median among 42 Consumer Discretionary peers that had reported. The company ranked 15th from the bottom on this measure, placing its margin below the sector comparison set.
Management keeps restaurant expansion on track
Management said the company added five restaurants and closed one in Q1FY27, and remains on track for 580–630 restaurants by December 2027. The company also introduced the limited-time Mango Burst range and launched the ‘Let’s Family at McD’ brand anthem as McDonald’s marked 30 years in India.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹736 cr |
| Other income | ₹7 cr |
| Expenses | ₹643 cr |
| Operating profit | ₹93 cr |
| Operating margin (%) | 12.63% |
| Interest | ₹39 cr |
| Depreciation | ₹60 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.04 |
Operating margin of 12.63% compares with a Consumer Discretionary sector median of 15.30% across 42 peers that have reported Q1FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company is on track to reach 580–630 restaurants by December 2027.
Expansion
- The company added five restaurants in Q1 FY27 and closed one restaurant.
New products
- The company introduced the limited-time Mango Burst Range to drive customer excitement.
New initiatives
- The company launched the new brand anthem ‘Let’s Family at McD’ to celebrate 30 years of McDonald’s in India.
What to watch
- Whether operating margin improves from 12.63%.
- Whether interest of Rs 38.77 cr and depreciation of Rs 59.96 cr continue to absorb most operating profit.
- Progress against management’s stated target of 580–630 restaurants by December 2027.