Revenue rises 8.7 per cent YoY with margin gains and digital momentum, as McDonald’s franchisee targets 600+ outlets by 2027
Westlife Foodworld, which operates McDonald’s restaurants across West and South India through its subsidiary Hardcastle Restaurants, reported a steady financial performance for the fourth quarter ended March 31, 2026, underpinned by operational discipline, margin expansion and continued network growth.
The company recorded revenue of Rs 6.55 billion in Q4 FY26, marking an 8.7 per cent year-on-year increase, supported by improved guest traction and sustained brand affinity. Same Store Sales Growth (SSSG) stood at 1.5 per cent for the quarter, with momentum strengthening progressively across the period.
Profitability metrics showed resilience despite inflationary pressures. Gross margins expanded sequentially by approximately 60 basis points, while Restaurant Operating Margins improved by around 70 basis points year-on-year. Operating EBITDA rose 9.6 per cent YoY to Rs 870 million, with margins holding steady at 13.3 per cent, driven by cost optimisation initiatives. Cash profit after tax stood at Rs 487 million, accounting for 7.4 per cent of total sales.
Demand trends remained mixed across consumption channels. On-premise sales contributed 58 per cent of overall revenue, with dine-in and takeaway segments growing 9 per cent YoY, supported by increased footfall. Off-premise channels expanded 6 per cent YoY, led by strong growth in McDelivery, which continues to scale as a key revenue driver.
The company also strengthened its digital ecosystem, reporting approximately 3.5 million monthly active users and around 52 million cumulative app downloads. Digital channels accounted for nearly 76 per cent of total sales, reflecting a sustained shift towards app-based ordering and enhanced customer engagement.
On the expansion front, Westlife added 21 restaurants during the quarter, taking its total footprint to 478 outlets across 78 cities. The company remains on track to achieve its medium-term target of 580–630 restaurants by 2027, supported by continued rollout of Experience of the Future (EOTF) and McCafé formats across its network.
Amit Jatia, Chairperson of Westlife Foodworld, stated that the company’s performance reflects the strength of its long-term strategy and execution discipline amid evolving market conditions. He highlighted the focus on value-led offerings, digital engagement and operational efficiency as key enablers of sustained growth.
During the quarter, the company continued to drive consumer engagement through value platforms such as Everyday Value Meals priced at Rs 99, alongside merchandise-led offerings and a monthly McCafé subscription aimed at boosting frequency and brand loyalty.
Despite near-term volatility in input costs, including LPG and key commodities, Westlife’s focus on supply chain efficiencies and proactive sourcing strategies helped mitigate margin pressures. Investments in store modernisation and capability upgrades also contributed to operational resilience.
With strong digital traction and significant headroom in India’s quick service restaurant (QSR) sector, the company remains well-positioned to drive consistent and sustainable growth in the coming years.
