Westlife Q1 FY27: Revenue Up 12%, Fastest Guest Growth

Westlife Foodworld Limited, operator of McDonald's in West and South India, reported Q1 FY27 results for the June 2026 quarter on 30 July. Q1 FY27 numbers (consolidated): Revenue: Rs 735.64 crore, up 12% YoY Operating EBITDA: Rs 94.6 crore, up 11%; margin 12.9% vs 13.0% Restaurant operating margin: 18.6% Cash PAT: Rs 51.7 crore, 7% of sales; statutory PAT Rs 0.59 crore, down 52% YoY SSSG: 4.3%; digital channels 74% of sales 482 restaurants across 79 cities; target 580 to 630 by December 2027 The 52% statutory PAT fall is a lease accounting artefact, not operations. Cash PAT of Rs 51.7 crore at 7% of sales is the operating reality. Guest counts grew at the fastest pace in recent quarters; May and June each delivered mid-single-digit SSSG. Board declared an interim dividend of Rs 0.40 per share, ex 7 August. Westlife Foodworld [$WESTLIFE][***** shares trade at Rs 549.76 (10 Sep 2026, 11:16 AM IST), down 25 percent in a year, near the Rs 396 low. P/E 271 on statutory EPS Rs 2.03; sector P/E 35. My view: the operating recovery is real, the valuation structure is not what it looks like. Statutory PAT of Rs 0.59 crore obscures Rs 51.7 crore of Cash PAT, a positive 7% margin. The problem is that 4.3% SSSG and 12% growth do not yet justify 271x statutory or even roughly 160x on Cash PAT at the Rs 8,230 crore market cap. Guest count growth needs to translate to SSSG above 6% before the multiple compresses toward the sector. Watch for that; not an entry today. Levels: Rs 396 to 420 the 52-week base; Rs 620 to 640 the band to reclaim; Rs 757 the high. Disclosure: Vijay Kumar Gupta, SEBI Registered Research Analyst, INH000020226, Vijay Gupta Advisory. SEBI registration and NISM certification do not guarantee performance or assure returns. Securities markets are subject to market risks. No holdings in the subject company.