Westlife Foodworld Limited (WESTLIFE) AI Stock Analysis

• Market Cap: ₹74.38B
• Dividend Yield: 0.14%
• Average Volume (3M): 12.63K
• Price to Earnings (P/E): 263.1
• Beta (1Y): 0.98
• Revenue Growth: 6.65%
• EPS Growth: 73.46%
• Country: IN
• Employees: 10,314
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.10
• Shares Outstanding: 155,936,170
• 10 Day Avg. Volume: 6,257
• 30 Day Avg. Volume: 12,630
• PEG Ratio: -10.86
• Price to Book (P/B): 18.02
• Price to Sales (P/S): 4.39
• P/FCF Ratio: 85.48
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹570.00
• Price Target Upside: 4.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: ₹482.00 ▼(-11.88% Downside)

Westlife Foodworld Limited's overall stock score is primarily impacted by its strong financial performance in terms of revenue growth and cash flow generation. However, the stock faces significant challenges due to bearish technical indicators and an extremely high P/E ratio, suggesting overvaluation. The lack of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash generation

Exceptional operating cash flow relative to net income (OCF/NI 28.4) and rising free cash flow show durable ability to convert sales into cash. This supports capex, store expansion and debt servicing over the medium term and reduces reliance on external financing.

Unit economics & margins

A ~55% gross margin and improving EBIT margin indicate strong underlying unit economics and better store-level operating efficiency. These structural margins provide a buffer to absorb input cost swings and underpin sustainable profitability as the restaurant base grows.

Brand/operating scale

Master-franchise relationship with McDonald’s and a large regional operating footprint deliver durable competitive advantages: brand recognition, supply-chain scale, marketing support and customer loyalty, supporting steady revenue per store and expansion economics.

Negative Factors

High leverage

A D/E of 2.69 signals material leverage that can strain cash flows if sales or margins worsen. Elevated interest and principal obligations limit financial flexibility for new stores or marketing and increase refinancing risk across a 2–6 month horizon if earnings lag expectations.

Weak net profitability

Despite solid top-line growth, a 0.49% net margin leaves little buffer for shocks and limits retained earnings for reinvestment. Persistent low net profitability can hamper balance sheet repair, slow deleveraging and constrain shareholder returns over the medium term.

Rising operating costs

A declining EBITDA margin suggests store-level or operating cost pressures that could erode cash generation and franchise economics. If cost inflation persists, margin recovery may be difficult, pressuring free cash flow and making debt reduction harder in the coming months.

Westlife Foodworld Limited Business Overview & Revenue Model

Company Description

Westlife Foodworld Limited, through its subsidiary, Hardcastle Restaurants Private Limited, owns and operates a chain of McDonald's restaurants in Western and Southern India. The company operates through various formats and brand extensions, such as standalone restaurants, drive-thru's, mall food courts, McDelivery, McCafe, McBreakfast, and dessert kiosks. The company was formerly known as Westlife Development Limited and changed its name to Westlife Foodworld Limited in November 2022. Westlife Foodworld Limited was incorporated in 1982 and is based in Mumbai, India.

How the Company Makes Money

Westlife Foodworld generates revenue primarily through the operation of its McDonald's franchise restaurants, which includes sales from food and beverages. The company earns money by selling a wide range of fast-food items, including burgers, chicken products, salads, beverages, and desserts. Additional revenue comes from delivery services and the expansion of its restaurant network. Significant factors contributing to its earnings include strategic partnerships with suppliers for cost-effective sourcing of ingredients, marketing initiatives that drive customer engagement, and the continuous adaptation of its menu to meet changing consumer preferences. Moreover, the company benefits from economies of scale as it expands its operations, which helps reduce costs and increase profitability.

Westlife Foodworld Limited Financial Statement Overview

Summary

Westlife Foodworld Limited shows strong revenue growth and operational improvements. However, profitability at the net income level is constrained, and high leverage poses a risk. Strong cash flow generation helps mitigate some financial risks.

Income Statement

Westlife Foodworld Limited has shown a strong recovery in revenue with consistent growth over the past years. The gross profit margin is robust at approximately 55% in 2025, indicating effective cost management. However, the net profit margin is low at 0.49% for 2025, which suggests that while top-line growth is strong, bottom-line profitability is constrained. EBIT margin improved significantly in 2025, showcasing operational efficiency improvements, yet EBITDA margin saw a decline, pointing to potential increased operating costs.

Balance Sheet

The company has a high debt-to-equity ratio of 2.69 in 2025, which indicates high leverage and potential risk if earnings do not improve. The return on equity is modest at 2.01% for 2025, showing limited returns to shareholders. The equity ratio stands at 23.1%, reflecting a balanced but slightly leveraged capital structure. Overall, the balance sheet shows potential risks due to high debt levels.

Cash Flow

Westlife Foodworld Limited has demonstrated strong operating cash flows relative to net income, with an operating cash flow to net income ratio of 28.4 in 2025, indicating solid cash generation capabilities. Free cash flow has grown slightly from the previous year, showing effective capital management. However, the free cash flow to net income ratio is significantly high, suggesting the company is able to translate its earnings into cash effectively.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	25.16B	24.74B	23.68B	22.59B	15.56B	9.75B
Gross Profit	13.03B	13.69B	12.11B	8.22B	7.21B	4.01B
EBITDA	3.41B	3.19B	3.88B	3.94B	2.17B	954.35M
Net Income	101.20M	121.47M	692.11M	1.12B	-16.66M	-994.23M
Balance Sheet
Total Assets	0.00	26.08B	22.86B	20.99B	17.98B	17.24B
Cash, Cash Equivalents and Short-Term Investments	589.44M	589.44M	876.10M	284.07M	1.74B	1.57B
Total Debt	0.00	16.23B	16.02B	14.10B	10.55B	9.68B
Total Liabilities	-6.03B	20.04B	16.98B	15.33B	13.35B	12.42B
Stockholders Equity	6.03B	6.03B	5.88B	5.66B	4.62B	4.81B
Cash Flow
Free Cash Flow	0.00	1.27B	1.23B	788.88M	704.94M	792.03M
Operating Cash Flow	0.00	3.45B	3.40B	3.49B	1.71B	1.29B
Investing Cash Flow	0.00	-2.19B	-1.85B	-2.65B	-564.66M	-741.92M
Financing Cash Flow	0.00	-811.27M	-1.49B	-980.72M	-1.02B	-453.18M

Westlife Foodworld Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 547.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:WESTLIFE, the sentiment is Positive. The current price of 547 is above the 20-day moving average (MA) of 496.35, above the 50-day MA of 527.12, and below the 200-day MA of 648.08, indicating a neutral trend. The MACD of -8.91 indicates Negative momentum. The RSI at 58.14 is Neutral, neither overbought nor oversold. The STOCH value of 45.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:WESTLIFE.

Westlife Foodworld Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DEVYANI	63 Neutral	₹152.01B	-372.74	―	―	20.91%	-202.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VMART	60 Neutral	₹48.51B	36.13	―	―	16.45%	―
SAPPHIRE	59 Neutral	₹65.16B	-9,184.87	―	―	10.18%	-104.25%
BATAINDIA	57 Neutral	₹110.62B	64.88	―	0.95%	-0.95%	-50.96%
WESTLIFE	52 Neutral	₹74.38B	263.06	―	0.14%	6.65%	73.46%
RBA	41 Neutral	₹36.95B	-18.70	―	―	7.75%	20.28%