Westlife slips into Rs 2.04-cr loss as expenses outpace sales
Revenue rose +1.51% QoQ, but higher costs, interest and depreciation pushed profit before tax into a Rs 2.70 cr loss.
Filed 23 Oct 2026, 12:23 IST · Westlife Foodworld Ltd (WESTLIFE)
Key takeaways
- Consolidated operating margin fell 0.13 percentage points QoQ to 12.50% as expenses grew +1.66%, faster than revenue at +1.51%.
- Consolidated net profit moved to a Rs 2.04 cr loss from a Rs 0.59 cr profit as interest rose +3.17% and depreciation increased +3.24%.
- Management said Westlife is on track to reach more than 580 restaurants by March 2028, after adding 11 and closing one in Q2FY27.
Price around the results
Higher sales did not prevent a quarterly loss
Westlife Foodworld’s consolidated revenue grew +1.51% QoQ to Rs 746.73 cr, while operating profit rose only +0.46% to Rs 93.35 cr. The higher operating profit was offset below that line by interest of Rs 40.00 cr and depreciation of Rs 61.90 cr, leaving profit before tax at a Rs 2.70 cr loss. Net profit therefore moved from Rs 0.59 cr in Q1FY27 to a Rs 2.04 cr loss in Q2FY27.
Costs and finance charges squeezed the quarter
Expenses grew +1.66%, faster than revenue at +1.51%, which narrowed operating margin by 0.13 percentage points. Interest increased +3.17% and depreciation rose +3.24%, adding pressure below operating profit. The tax rate fell 1.21 percentage points and partly reduced the reported loss, while other income could not prevent a pretax loss; its reported share of PBT was -217.04%.
Margin stayed just above the peer median
Operating margin declined from 12.63% in Q1FY27 to 12.50% in Q2FY27, marking a sequential deterioration in the two quarters shown. Even after the decline, Westlife was 0.08 percentage points above the 12.42% median for 36 Consumer Discretionary peers that had reported. There is no year-on-year comparison in the reported period.
Restaurant additions support the expansion plan
The company said it added 11 restaurants and closed one in Q2FY27, taking its network to 492 restaurants across 80 cities as of September 2026. Management said it is on track to reach more than 580 restaurants by March 2028. The presentation also said Fam Fries and the Spider-Man Meal saw strong traction, while a new brand anthem and limited-time offerings were intended to strengthen brand affinity.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹747 cr | ₹736 cr | +1.51% |
| Other income | ₹6 cr | ₹7 cr | -11.08% |
| Expenses | ₹653 cr | ₹643 cr | +1.66% |
| Operating profit | ₹93 cr | ₹93 cr | +0.46% |
| Operating margin (%) | 12.50% | 12.63% | — |
| Interest | ₹40 cr | ₹39 cr | +3.17% |
| Depreciation | ₹62 cr | ₹60 cr | +3.24% |
| Profit before tax | ₹-3 cr | ₹1 cr | — |
| Tax | ₹-1 cr | ₹0 cr | — |
| Net profit | ₹-2 cr | ₹1 cr | — |
| EPS (₹) | ₹-0.13 | ₹0.04 | — |
Operating margin of 12.50% compares with a Consumer Discretionary sector median of 12.42% across 36 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.25% | +4.64% |
Volume on the results session was 53.64× its 20-day average.
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 more than 580 restaurants by March 2028.
Expansion
- The company added 11 restaurants and closed one restaurant in Q2 FY27.
- The company operates 492 restaurants across 80 cities as of September 2026.
New products
- Fam Fries and Spider-Man Meal launched during the quarter and saw strong traction.
New initiatives
- The company is strengthening brand affinity through a new brand anthem and limited-time offerings.
- The company is targeting superior business performance and operating efficiency through execution excellence.
What to watch
- Whether operating margin holds above 12.50% after the 0.13-percentage-point QoQ decline.
- Whether expense growth falls below the +1.66% recorded in Q2FY27 relative to revenue growth of +1.51%.
- Restaurant count progression from 492 after 11 additions and one closure in Q2FY27.