Most QSR shares in crimson for FY26; Westlife Foodworld, Jubilant FoodWorks shine amid sector blues

India’s fast service restaurant (QSR) sector has largely misplaced its urge for food for progress in FY26 up to now, with six out of eight listed gamers delivering unfavorable returns.
Share costs throughout the phase have tumbled anyplace between 10% and 85%, signalling a section of consolidation after years of aggressive enlargement. The one exceptions are Westlife Foodworld and Jubilant FoodWorks, which have managed to serve optimistic returns of 20% and 9% respectively.

Losses rule September quarter earnings

Of the eight QSR firms, 4—Sapphire Meals India, Restaurant Manufacturers Asia, Devyani Worldwide, and Westlife Foodworld—have introduced their September ’25 quarter outcomes. Three of them continued to remain within the crimson, posting internet losses for one more quarter. Nonetheless, regardless of a weak backside line, all 4 reported wholesome top-line progress year-on-year.

Defying the development, Westlife Foodworld reported a pointy turnaround in profitability. The corporate’s internet revenue soared to Rs 27.71 crore within the September quarter, in contrast with simply Rs 36 lakh in the identical interval final 12 months, reflecting stronger operational effectivity and improved margins.

Market leaders and valuations

Jubilant FoodWorks, which operates Domino’s in India, stays the most important firm within the QSR pack with a market capitalisation of about Rs 38,000 crore. Devyani Worldwide follows at round Rs 18,000 crore.

Jubilant FoodWorks, one of many few gainers in FY26, has risen practically 10% to Rs 577 per share. Trendlyne’s SWOT evaluation offers the inventory a blended view, with weak spot factors barely larger than strengths. Nonetheless, the basics look strong, aided by a rising internet revenue and margins, constant revenue progress over the previous two quarters, declining promoter pledges, and a dividend yield above the sector common.

Devyani Worldwide, alternatively, has fallen greater than 15% this fiscal. The SWOT outlook seems weak, with a number of stress factors: promoter stake discount, steep fall in trailing twelve-month (TTM) earnings, a swing from revenue to loss, and a two-year decline in annual revenue.

Greatest Losers: United Foodbrands, Restaurant Manufacturers Asia

United Foodbrands tops the record of laggards, with its inventory crashing 85% in FY26 to Rs 198. The corporate’s fundamentals additionally look fragile, with promoters offloading stake, declining working money circulation, two consecutive years of deteriorating internet revenue, and erosion in guide worth per share.

Restaurant Manufacturers Asia, which manages the Burger King model in India, is the second-biggest loser, sliding practically 35% up to now this fiscal. Curiously, regardless of its value decline, the corporate’s SWOT profile paints a comparatively optimistic image — it scores double the variety of energy factors in comparison with weaknesses. Its enhancing monetary metrics embody low debt ranges, rising quarterly revenues, two years of enhancing internet earnings, and a zero promoter pledge.

As FY26 progresses, sector watchers imagine valuation corrections and operational reforms might set the stage for a possible restoration, particularly for gamers displaying enhancing fundamentals amid present turbulence.

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(Disclaimer: Suggestions, ideas, views and opinions given by the consultants are their very own. These don’t characterize the views of Financial Instances.)