Motilal Oswal Assigns Target Price of Rs 535 to Neutral Rated Westlife Foodworld

Westlife Foodworld Reports 9% Revenue Growth in 4QFY26

Westlife Foodworld, a leading food services company, reported a revenue growth of 9% year-over-year (YoY) to INR6.6 billion in the fourth quarter of fiscal year 2026 (4QFY26), exceeding estimates of INR6.4 billion. The company's same-store sales growth (SSSG) stood at 1.5% YoY, in line with expectations.

The growth in revenue can be attributed to a 9% increase in on-premise sales, driven by positive footfall growth across all three months of the quarter. Off-premise sales, on the other hand, increased by 6% YoY. The West region continued to witness healthy growth momentum, while recovery trends have started in the South market, with positive footfalls and flat SSSG.

The company's footfalls grew in mid-single digits, supported by value meal offerings on its INR99 platform and brand-building initiatives. The momentum sustained into April as well, indicating a positive trend.

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Outlook and Recommendations

Motilal Oswal's research team believes that regional demand will gradually improve, leading to a gradual recovery in the company's average daily sales (ADS) in the near future. Based on this outlook, the team reiterates its Neutral rating for Westlife Foodworld with a target price (TP) of INR535, based on 28x Mar'28E EV/EBITDA (pre-IND AS).

Note: EV/EBITDA stands for Enterprise Value to Earnings Before Interest, Taxes, Depreciation, and Amortization.

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