Archive · 1 Sep 2026
Three Indian QSR Stocks Show Growth, Margins, and Risks
India’s quick-service restaurant companies are growing as more people eat out and try different foods.
The article looks at Jubilant FoodWorks, Devyani International, and Westlife Foodworld.
Jubilant is the largest of the three by revenue and has the strongest operating margin.
Devyani grew sales the fastest during the quarter.
Westlife attracted more customers with low-priced value meals and improved same-store sales.
Jubilant’s Popeyes restaurants also grew quickly.
All three companies are using digital apps, delivery services, and new stores to reach customers.
However, higher food, fuel, and wage costs could reduce profits.
Opening too many nearby stores could also cause companies to take sales away from themselves.
Jubilant FoodWorks recorded Q1 FY27 revenue of ₹2,569.65 crore, up 13.66% year over year, with a 19.48% operating margin.
Devyani International delivered the fastest revenue growth at 16.47%, reaching ₹1,580.52 crore, while its operating margin rose to 16.10%.
Westlife Foodworld reported 11.86% revenue growth to ₹735.64 crore, with a 12.86% operating margin and improved same-store sales growth.
Jubilant’s Popeyes business posted more than 40% like-for-like growth, while Domino’s like-for-like sales improved to 2.5%.
The companies’ growth plans face potential risks from input-cost inflation, margin pressure, and sales cannibalization caused by rapid store expansion.
- Who
- Jubilant FoodWorks, Devyani International, and Westlife Foodworld.
- What
- An analysis of their recent quarterly growth, margins, operations, valuations, and expansion plans.
- When
- The recent quarter identified as Q1 FY27, with comparisons across the preceding quarters shown in the article.
- Where
- Primarily India; the companies also operate in selected international markets including Bangladesh, Sri Lanka, Nepal, Thailand, and Nigeria.
- Why
- Changing dining preferences, rising dining-out budgets, digital ordering, delivery, value meals, and store expansion are driving the sector’s growth, while cost pressures create risks.
Growth Case
Caution Case
Store expansion
Growth Case
More restaurants, new meal options, and entry-level pricing could expand the organized QSR market and increase customer traffic.
Caution Case
Aggressive expansion could cannibalize sales between a company’s own stores and put pressure on margins.
Digital delivery
Growth Case
Owned apps, delivery systems, kiosks, and McDelivery can improve customer loyalty, efficiency, and control over the user experience.
Caution Case
The companies still need to strengthen dine-in traffic and manage the costs of digital infrastructure and delivery operations.
Stock valuation
Growth Case
Revenue growth, stronger brands, and improving operating performance could support investor interest in the three companies.
Caution Case
Devyani International and Westlife Foodworld trade at higher EV-to-EBITDA multiples than Jubilant FoodWorks, while their reported ROE figures are negative.
- Jubilant FoodWorks Q1 FY27 revenue
- ₹2,569.65 crore; year-over-year growth of 13.66%.
- Devyani International Q1 FY27 revenue
- ₹1,580.52 crore; year-over-year growth of 16.47%.
- Westlife Foodworld Q1 FY27 revenue
- ₹735.64 crore; year-over-year growth of 11.86%.
- Highest operating margin
- Jubilant FoodWorks at 19.48%.
- Store networks
- Jubilant FoodWorks has more than 2,000 stores, Devyani International has 2,255 stores, and Westlife Foodworld has 482 restaurants across 79 cities.
- EV-to-EBITDA multiples
- Jubilant FoodWorks: 18.23; Devyani International: 21.71; Westlife Foodworld: 27.83; industry median: 19.22.
- Key expansion targets
- Jubilant aims to build Popeyes into a ₹1,000 crore brand over three to four years; Westlife plans 580–630 restaurants by 2027.