Brands
Quarter Pounder, Not Quarter Loss Westlife bites back in Q3 scorecard
MUMBAI: When numbers are served hot, even a tough quarter can come with a twist. Westlife Foodworld Limited, which operates McDonald’s restaurants in West and South India, posted a mixed but telling set of results for the quarter ended December 31, 2025, with exceptional gains cushioning pressure on its operating performance.
For the December quarter, consolidated revenue from operations stood at Rs 667.22 crore, compared with Rs 637.48 crore in the preceding quarter and Rs 650.24 crore in the year-ago period. Including other income of Rs 7.42 crore, total income for the quarter rose to Rs 678.13 crore.
Total expenses for the quarter came in at Rs 666.43 crore, driven largely by employee benefit expenses ofRs ₹102.69 crore, cost of materials consumed at Rs 218.25 crore, depreciation and amortisation of Rs 56.24 crore, and other expenses of Rs 252.27 crore. As a result, profit before exceptional items and tax stood at Rs 11.70 crore.
However, exceptional items played a decisive role. A gain of Rs 81.11 crore from a redevelopment transaction was partly offset by an impairment of investment amounting to Rs 71.19 crore, resulting in a net exceptional impact of Rs 20.12 crore. After factoring these in, profit before tax for the quarter stood at Rs 20.12 crore.
Following a tax expense of Rs 10.20 crore, Westlife reported a profit after tax of Rs 9.92 crore for the quarter, compared with a loss in the preceding quarter. Total comprehensive income for the period stood at Rs 5.66 crore, after accounting for other comprehensive losses.
On a nine-month basis, the story was steadier. For the nine months ended December 31, 2025, revenue from operations stood at Rs 1,970.21 crore, up from Rs 1,888.05 crore in the corresponding period last year. Total income for the period came in at Rs 1,995.12 crore.
Expenses during the nine-month period rose to Rs 1,997.62 crore, resulting in a marginal loss before exceptional items and tax of Rs 2.49 crore. Exceptional items, including gains from redevelopment and the impact of new labour codes, helped swing the numbers, taking profit before tax to Rs 40.63 crore.
After accounting for a tax outgo of Rs 29.97 crore, profit after tax for the nine months stood at Rs 10.67 crore. Total comprehensive income for the period was reported at Rs 29.39 crore.
For the full year ended March 31, 2025, Westlife had reported consolidated revenue of Rs 2,491.19 crore and a profit after tax of Rs 11.55 crore, underlining the volatility that continues to mark the quick-service restaurant business amid inflationary pressures, wage costs and store-level investments.
Earnings per share for the December quarter stood at Rs 0.07, while nine-month EPS was reported at Rs 1.92.
While operating margins remain under watch, the latest numbers underline how redevelopment-led gains and balance-sheet discipline are helping cabsorb short-term pressure. In a business where consistency is hard-earned, the quarter shows the company finding ways to keep the grill warm even when the heat is on.
Brands
Jubilant FoodWorks faces Rs 47.5 crore GST demand, plans appeal
Tax authorities flag alleged misclassification of restaurant services
MUMBAI: Jubilant FoodWorks Limited has landed in a tax tussle after receiving a GST demand of Rs 47.5 crore from the office of the additional commissioner of CGST and central excise in Thane, Maharashtra.
The order, issued under the provisions of the Central Goods and Services Tax Act, 2017, relates to an alleged incorrect classification of certain services under the category of restaurant services. According to the tax authorities, this classification resulted in a short payment of goods and services tax for the period between the financial years 2019-20 and 2021-22.
The demand includes Rs 47.5 crore in GST along with an equal amount as penalty, in addition to applicable interest. The order was received by the company on March 13, 2026.
In a regulatory filing to the BSE Limited and the National Stock Exchange of India Limited, the company said it disagrees with the order and believes its arguments were not adequately considered.
The company is preparing to challenge the decision and plans to file an appeal. It added that once the redressal process is complete, the demand is likely to be dropped.
Despite the sizeable figure attached to the notice, the company said it does not expect any material impact on its financials, operations or other activities.
The disclosure was signed by Suman Hegde, EVP and chief financial officer, who confirmed that the company received the order at 19:06 IST on March 13 and has already initiated steps to contest it.
The development places the quick service restaurant major in the middle of a tax debate that could hinge on how certain restaurant-linked services are classified under GST rules. For now, the company appears ready to take the matter from the tax office to the appeals desk.
