Q2 2026 Westlife Foodworld Ltd Earnings Call Transcript
Key Points
- Westlife Foodworld Ltd (BOM:505533) achieved a 3.8% year-over-year revenue growth, reaching INR6.42 billion, despite a challenging market environment.
- The company reported a significant expansion in gross margin to 72.4%, driven by supply chain efficiencies, marking an all-time high.
- Digital sales contributed around 75% of the revenue, with a year-over-year growth of over 300 basis points, supported by a strong digital ecosystem.
- Westlife Foodworld Ltd opened eight new restaurants during the quarter, bringing the total to 450 restaurants across 72 cities, enhancing their market presence.
- The company has a robust pipeline of high-impact initiatives expected to generate INR40 crore to INR50 crore in incremental cash flow over the next year, supporting growth and profitability.
- The quarter was marked by a decline in discretionary spending and eating out frequency, with the industry seeing a 4% to 6% decline in outside home food consumption in August and September.
- Despite efforts, the South Indian market, particularly Bangalore, has been a drag on performance, affecting overall growth.
- The performance of third-party aggregators has been unpredictable, impacting the off-premise sales channel.
- There was a notable decline in same-store sales growth, with September being a particularly challenging month.
- The company faces macroeconomic challenges, including muted real income growth and subdued discretionary spending, impacting several P&L line items.
Ladies and gentlemen, good day, and welcome to the Westlife Foodworld Limited Q2 FY26 earnings conference call. (Operator Instructions)
We would like to remind you that certain statements made by the management in today's call may be forward-looking statements. These forward-looking statements reflect management's best judgment and analysis as of today.
The actual results may differ materially from the current expectations based on a number of factors affecting the business. Please refer to the Safe Harbor disclosure in the earnings presentation. I now hand the conference over to Mr. Chintan Jajal. Thank you, and over to you, sir.
Thanks, [Rayo]. Welcome, everyone, and thank you for joining us on Westlife Foodworld earnings conference call for the second-quarter on the September 30, 2025. I'm Chintan Jajal, Head IR at Westlife. From the management team, I have with me Mr. Akshay Jatia, President and CEO; Mr. Saurabh Kalra, Managing Director; Mr. Hrushit Shah, Chief Financial
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