Neutral Westlife Foodworld; target of Rs 750: Motilal Oswal

Motilal Oswal's research report on Westlife Foodworld

Westlife Foodworld (WESTLIFE) reported revenue growth of 7% YoY to INR6.5b in 1QFY26, with same-store sales growth (SSSG) of 0.5% YoY (est. 1.5%) on a favorable base (-6.7% in 1QFY25). Average sales per store rose 1% YoY to INR62m (annually) in 1QFY26. Growth was broad-based, with on-premise sales growing 8% YoY and off-premise sales growing 4% YoY. Consumption trends remain stable, and WESTLIFE expects eating-out frequency to gradually pick up in FY26. This improvement is likely to be supported by lower inflation and government stimulus. That said, while performance remains strong in the West, the company’s focus on strengthening presence in the South will remain a key focus area.

Outlook

We reiterate our Neutral rating with a TP of INR750, based on 35x Jun’27E EV/EBITDA (pre-IND AS).