Westlife Foodworld

ADMAS Industries Private Limited, a promoter group entity of Westlife Foodworld, acquired 19.15 lakh shares of the company in open-market transactions on 23 and 25 September 2026. The purchase comprised 15.9 lakh shares and 3.25 lakh shares on the two dates and took the entity's holding from nil to 1.23%. Total promoter and promoter group holding stood at about 57% after the purchase. The acquisition followed a 12,000-share open-market purchase by promoter entity Horizon Impex in March 2026 that had taken group holding to 56.34%. Westlife Foodworld operated 482 McDonald's restaurants across 79 cities in West and South India at the end of the June quarter. Gross revenue was about Rs 2,626 crore in the year to March 2026, and digital channels contributed about 74% of sales.

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Adds background, revenue from paragraph 3 onwards

July 30 (Reuters) - Westlife Foodworld WEST.NS, a McDonald's MCD.N operator in India, reported a 52% fall in quarterly profit on Thursday, as fast-food restaurants grappled with higher energy, labour and raw material costs amid rising competition.

Operating costs have jumped for restaurants since the Middle East war started, even as discounting to fend off competition from smaller rivals including California Burrito, Wow Momo and Blue Tokai Coffee curbs profitability.

Westlife, which operates McDonald's restaurants in west and south India, said its consolidated profit after tax stood at 5.9 million rupees ($61,655.8) for the quarter ended June 30, against 12.3 million rupees a year earlier.

Revenue rose to 7.36 billion rupees from 6.58 billion rupees a year earlier.

During the quarter, McDonald's promoted its 99-rupee Everyday Value Meals, comprising a burger, fries and a Coke.

($1 = 95.6925 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Mrigank Dhaniwala)

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Corrects typographical error in headline

May 7 (Reuters) - Westlife Foodworld WEST.NS, which operates McDonald's MCD.N restaurants in west and south India, reported a 56% rise in fourth-quarter profit on Thursday on steady demand for discounted meals.

The company's consolidated net profit rose to 23.8 million Indian rupees ($252,513.20) for the quarter ended March 31 from 15.2 million rupees a year earlier.

($1 = 94.2525 Indian rupees)

(Reporting by Surbhi Misra in Bengaluru and Praveen Paramasivam in Chennai; Editing by Janane Venkatraman)

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** Shares of quick-service restaurant operators fall as LPG shortage concerns raise risks of higher near-term operating costs and store-level disruptions

** Jefferies says India imports roughly 60% of its LPG and natural gas needs and shortages have been seen in commercial kitchens amid Middle East tensions

** Adds retail and QSR sector earnings could see more than 5% hit in its base-case scenario from ongoing supply constraints

** Jubilant Foodworks JUBI.NS down 2.8% at 441.5 rupees, Devyani International DEVY.NS falls 3.27% to 96.3 rupees, Westlife Food WEST.NS down 1.44% to 436.05 rupees, Sapphire Foods SAPI.NS drops 4.44% to 152.16 rupees

** Shares of food-delivery platforms Eternal ETERNAL.NS down 1.13% at 230.51 rupees and Swiggy SWIGGY.NS fall 3.43% to 259.30 rupees

(Reporting by Surbhi Misra in Bengaluru)

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** Shares of Westlife Foodworld WEST.NS jump 9.2% to 520.35 rupees

** Brokerage BOB Capital Markets says WEST is at early stages of a guest-count-led recovery, driven by sharper everyday value proposition and improved dine-in execution

** Macquarie says co saw positive same-store-sales growth on a mild single-digit drop in guest counts in January as co focused on affordability and product innovations

** McDelivery platform has seen strong growth supported by customer acquisition and growth investments, seeing significant traction in December and January - J.P. Morgan

** CLSA says WEST's same-store-sales growth were positive in January driven by a mid-single-digit increase in guest counts

** Trading vols 3x the 30-day average at 459,317 shares

** Analysts, on average, have 'hold' rating on WEST, mean PT at 593.86 rupees - LSEG data

** WEST fell 29% in 2025

(Reporting by Vijay Malkar)

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Feb 4 (Reuters) - Westlife Foodworld Ltd WEST.NS:

• WESTLIFE FOODWORLD EXEC - TO OPEN 20-25 STORES IN Q4

Source text: [ID:]

Further company coverage: WEST.NS

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** Shares of India's Jubilant Foodworks JUBI.NS and Westlife Foodworld WEST.NS jump 1.11% and 2.57% to 493.80 rupees and 495.20 rupees, respectively

** Brokerage CLSA upgrades both stocks to "buy" from "hold", saying risk-reward is now balanced after recent corrections

** CLSA says slower store growth is now priced in and expects sales acceleration with margin expansion driven by operating leverage

** Analysts on average rate Jubilant "buy" and Westlife "hold", with median PTs of 715 rupees and 627.50 rupees, respectively – data complied by LSEG

** JUBI shares down about 12.5% in Jan, while WEST down about 14%

(Reporting by Surbhi Misra in Bengaluru)

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Adds details and analyst comments throughout; updates shares

Jan 2 (Reuters) - India's KFC, Pizza Hut operator Devyani International jumped as much as 8.3% on Friday after announcing the long-anticipated $934 million merger with smaller peer Sapphire Foods, creating a fast-food major poised to challenge market leader Jubilant Foodworks.

The combined entity will operate more than 3,000 KFC and Pizza Hut outlets, franchises of Yum Brands YUM.N, in India and overseas, going up against the Domino's Pizza operator Jubilant's 3,480 outlets in the country.

Devyani's DEVY.NS stock was last trading 2.8% higher at 151.39 rupees.

The merger was a "welcome strategic move", said analysts at JP Morgan, as it meant a simplified structure, potential for meaningful cost savings and quicker decision making, helping Devyani compete more effectively with peers and food delivery platforms.

The merger comes as India's fast‑food franchisees contend with higher operating costs, slowing same‑store sales and margin pressures, while consumers trim discretionary spending. Both Devyani and Sapphire logged losses in the September 2025 quarter.

The combined business could deliver revenue and operating profit 50%–60% above current levels, with a scale and growth trajectory approaching Jubilant's, though margins are expected to remain comparatively weaker for now, added Emkay Global.

Devyani will issue 177 shares for every 100 Sapphire shares under the deal.

Sapphire Foods slipped about 3% to 254.25 rupees, while Jubilant's shares were trading 0.2% lower at 552.20 rupees.

The merger ratio is very close to where the stock prices closed on January 1 and so there is no major price adjustment that can arise out of this deal, said Jefferies analysts.

(Reporting by Urvi Dugar and Kashish Tandon in Bengaluru; Editing by Janane Venkatraman)

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Rewrites throughout, adds deal value in paragraph 1, consultant comment in paragraph 5

By Hritam Mukherjee and Nishit Navin

Jan 1 (Reuters) - India's KFC and Pizza Hut operators Sapphire Foods SAPI.NS and Devyani International DEVY.NS said on Thursday they will merge in a $934 million deal, creating a fast-food franchisee powerhouse in the world's most populous country.

The deal comes as India's fast-food franchisees grapple with higher costs, slowing same-store sales and margin pressure, while facing stiff competition from McDonald's MCD.N and Domino's Pizza DPZ.O operators in a market where consumers are cutting back on non-essential spending.

Devyani will issue 177 shares for every 100 shares of Sapphire as part of the deal and it expects annual synergies of 2.1 billion to 2.25 billion rupees ($23.34 million to $25.01 million) from the second full year of operations of the combined entity.

The companies, partners of Yum Brands YUM.N, run more than 3,000 outlets across India and overseas, including KFC and Pizza Hut dine-in restaurants and compete with the Indian operators of McDonald's and Domino's Pizza chains - Westlife Foodworld WEST.NS and Jubilant Foodworks JUBI.NS.

Both the KFC and Pizza Hut franchisees in India operate at a net loss, making scalability a challenge, said Akshay D'Souza, an independent consumer goods consultant.

"With the single entity, if they are able to unlock even half of the expected synergies, we will be seeing a profitable enterprise... where they can control costs better."

In the quarter ended September, Sapphire's consolidated total costs rose 10% on-year to 7.68 billion rupees, while Devyani's spends rose 14.4% to 14.08 billion rupees.

Devyani reported a net loss of 219 million rupees for the quarter ended September 30, reversing a profit of 170,000 rupees a year earlier, while Sapphire posted a wider consolidated net loss of 127.7 million rupees, compared with a loss of 30.4 million rupees a year ago.

($1 = 89.9625 Indian rupees)

(Reporting by Hritam Mukherjee, Nishit Navin and Nandan Mandayam, writing by Chandini Monnappa; Editing by Howard Goller and Ros Russell)

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** McDonald's India operator Westlife Foodworld WEST.NS gains 3.4% to 625.55 rupees

** Co says royalty rate payable to McDonald's fixed at 5% for FY26

** "This step is positive given that margins have remained under pressure," analysts at Investec said in a note; could lead to 8% increase in EBITDA for FY26

** Brokerage says the unchanged royalty payment rate will ease pressure amid muted demand

** Co indicated that royalty rate will remain unchanged until FY29, with a 50 bps upward revision in FY30, according to analysts at Investec

** Analysts rate the stock "Hold" on average; median PT at 773 rupees - data compiled by LSEG

** YTD, stock down 21.38%

(Reporting by Mridula Kumar)

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** Shares of quick service restaurant (QSR) operators gain between 1% and 3.5%

** India announced GST cuts on hundreds of consumer items ranging from soaps to small cars to spur domestic demand

** While the GST rate on QSR output remains same, lower tax on key inputs like cheese, other dairy products and chicken is down to 5% from 12%

** Jefferies says Jubilant Foodworks JUBI.NS, Devyani International DEVY.NS and Sapphire Foods SAPI.NS to benefit

** JUBI up 3.5%, while DEVY and SAPI rise 2.7% and 1.7%, respectively

** McDonald's India operator Westlife Foodworld WEST.NS climbs as much as 4.9%, last up 1.1%

** JUBI, SAPI, WEST rated "hold" on avg, DEVY rated "buy" - data compiled by LSEG

(Reporting by Manvi Pant in Bengaluru)

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** Bank of America says company-specific factors, not GST cuts, are key for growth and earnings upgrades for consumer firms

** Nifty FMCG Index .NIFTYFMCG is up nearly 1%, driven by a near 4% rise in Britannia Industries BRIT.NS on hopes of GST cut on biscuits

** BofA says if only the 12% GST slab is subsumed with no change to 5% and 18% slabs, the direct impact would be limited

** But moving some categories from 18% slab to lower could imply higher upside

** Brokerage remains selective in the consumer space, prefers Titan TITN.NS among discretionaries; says risk/reward is favourable for Varun Beverages VARB.NS and United Breweries UBBW.NS

** Brokerage more cautious on Avenue Supermarts AVEU.NS and quick service restaurant stocks like Westlife Foodworld WEST.NS, Devyani International DEVY.NS and Sapphire Foods SAPI.NS

** FMCG index is down 1% in 2025 so far, lagging the benchmark Nifty 50's .NSEI 5% rise

(Reporting by Nandan Mandayam and Nishit Navin in Bengaluru)

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** Macquarie cuts PTs on Indian fast food operators after weak Q1; says demand recovery only during Oct festive season

** Cuts PTs on Domino's franchisee Jubilant Foodworks JUBI.NS, McDonald's operator Westlife Foodworld WEST.NS, KFC franchisee Devyani International DEVY.NS and Pizza Hut operator Sapphire SAPI.NS

** Brokerage also lowers EPS estimates for all four with cautious near-term outlook

** Government's GST cut plans "enhances comfort" on demand recovery panning out in H2 FY26 - Macquarie

** Brokerage prefers DEVY followed by WEST; more confident on demand recovery for KFC and McDonald's operators

** On average, DEVY rated "buy", rest rated "hold", by analysts - data compiled by LSEG

** YTD, JUBI down 13%, DEVY falls 6%, WEST drops 11.3%, SAPI 1% down

(Reporting by Nandan Mandayam in Bengaluru)

(([email protected]; Mobile: +91 9591011727;))

** India's Westlife Foodworld WEST.NS down 3%, Sapphire Foods India SAPI.NS slips 2%

** Westlife, which runs McDonald's MCD.N outlets in west and south India, posted a 62% plunge in profit

** Sapphire, which runs KFC and Pizza Hut, swung to a net loss of 18 million rupees ($208,261)

** SAPI's Q1 core profit below our and street's estimates, we are concerned about cautious near-term growth outlook and dependence on recovery for margin expansion - Macquarie note

** WEST's margins "in-line" and no improvement in growth metrics, we remain watchful of demand getting better - Motilal Oswal

** On an avg SAPI rated "buy", WEST rated "hold" - data compiled by LSEG

** YTD, WEST down ~5% and SAPI up 2%

($1 = 86.3340 Indian rupees)

(Reporting by Hritam Mukherjee in Bengaluru)

(([email protected];))

July 23 (Reuters) - Westlife Foodworld WEST.NS, a McDonald's MCD.N franchisee in India, missed quarterly profit estimates on Wednesday, as restaurant chains faced stiff competition from local cafes and online kitchens.

The restaurant operator posted a consolidated profit after tax of 12.3 million rupees ($142,303) for the first quarter ended June 30, compared with a profit after tax of 32.5 million rupees a year ago.

Analysts had expected 50.8 million rupees of profit, according to data compiled by LSEG.

($1 = 86.4350 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Ananta Agarwal in Bengaluru; Editing by Mrigank Dhaniwala)

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Updates with details from paragraph 5

May 14 (Reuters) - Westlife Foodworld WEST.NS, the operator of McDonald's MCD.N in parts of India, on Wednesday doubled its fourth-quarter profit, helped by cheaper menu items and new restaurant openings.

The restaurant operator's consolidated profit after tax rose to 15.2 million rupees ($178,163.28) for the quarter ended March 31, from 7.6 million rupees a year ago.

Indian operators of U.S. chains such as KFC YUM.N and Burger King QSR.TO have launched cheaper items, including a $1 pizza and burger, to compete with local rivals as consumers grapple with high costs of living.

During the quarter, Westlife ramped up advertising for its breakfast options and coffee, which start at a little more than $1. This helped the franchisee report a 7.26% increase in revenue from operations to 6.03 billion rupees

However, the results are in contrast to Pizza Hut franchisee Sapphire Foods SAPI.NS. Last week, Sapphire said Pizza Hut's recovery in India would take longer, after reporting quarterly revenue slightly below estimates.

Westlife's same-store sales rose 0.7% year-on-year, while it opened 18 new restaurants during the quarter, taking its overall count to 438.

The company, which operates more than 400 McDonald's restaurants in western and southern India, faces stiff competition from India's Biggies Burger and Jumboking as well as independent restaurants.

The aggressive expansion, coupled with higher raw material and labour costs, crimped margins. Core profit margin dropped by 50 basis points year-on-year to 13.2%.

Westlife, however, said it expects more people to dine in restaurants as inflation continues to ease. In-store dining makes up more than half of Westlife's revenue with takeaway and online sales making up the rest.

Westlife's shares were up 0.2% after the results.

($1 = 85.3150 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Shivani Tanna in Bengaluru; Editing by Eileen Soreng)

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By Shivani Tanna and Praveen Paramasivam

May 5 (Reuters) - India's Jubilant FoodWorks' JUBI.NS strong sales growth for the March quarter is set to outpace rivals whose franchisees are expected to report muted growth despite value-focused promotions, several analysts said.

Operators of U.S. chains KFC YUM.N, McDonald's MCD.N and Burger King QSR.TO are likely to report a decline to mid-single-digit growth in same-store sales, as inflation-hit consumers cut back and local competition intensifies, according to six brokerages.

Jubilant, however, has already flagged a 12.1% increase in like-for-like sales in India in its quarterly update, which analysts say has benefited from its focus on online sales, discounts on third-party platforms, and a waiver of delivery fees on app orders.

Other franchisees have not issued sales updates. Sapphire kicks off earnings for the sector on Wednesday.

"Competitive intensity is growing in fried chicken and burger and the larger existing players like KFC and McDonald's don't have anything different to offer versus rivals," said Karan Taurani, an analyst at Elara Securities.

"Jubilant is performing the best of the lot," Taurani said, adding that its investments into 20-minute in-house delivery and app-led orders are helping reduce its reliance on third-party platforms, which rivals are heavily dependent on.

India's fast-food sector is cooling as inflation-hit consumers cut back, with franchisees relying on discounts to stay competitive in a crowded market.

Unlike Jubilant, which has pushed delivery and app-based offers, KFC and McDonald's franchisees rely more on dine-in traffic and face growing pressure from local cafes and restaurants, analysts said.

Jubilant reported a 34% jump in consolidated revenue to 21.07 billion rupees ($250.05 million) for the March quarter.

While Jubilant's digital strategy has delivered steady outperformance through the year, analysts expect its profit margins — like those of other operators — to remain under pressure in the March quarter, partly due to rising raw material and marketing costs.

Three brokerages expect Jubilant's core earnings margin — a metric the restaurant operator aims to boost over the next few quarters by tightening its costs — to be unchanged from a year earlier.

However, some analysts see fried chicken as a key long-term growth category, despite the challenge of sameness.

"If you see from a longer-term perspective, the next growth driver is the overall fried chicken category in India, but there would be some pressure for one or two quarters," said Preeyam Tolia of Axis Securities.

($1 = 84.2630 Indian rupees)

(Reporting by Shivani Tanna and Bharath Rajeswaran in Bengaluru and Praveen Paramasivam in Chennai; Editing by Nivedita Bhattacharjee)

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** Long-term view on Indian QSRs (Quick Service Restaurants)remains constructive and the ongoing prolonged growth slowdown is nearing its end, says Emkay Global

** Sees potential for return of mid-teen growth in FY26E for QSRs, beyond the muted Q4 - Emkay

** Emkay covers Jubilant Foodworks JUBI.NS, Westlife Foodworld WEST.NS and Devyani International DEVY.NS with "add", while Sapphire Foods SAPI.NS gets a "buy" rating.

** JUBI, DEVY and WEST up between 0.8%-4.2%, while SAPI is down close to 1%

** Average recommendation for JUBI, DEVY and SAPI is "buy," while WEST is a "hold", as per LSEG data

** Emkay remains in favor of JUBI and Sapphire, led by relatively better operating performance

** Maintains "add" on Westlife and upgrades Devyani to "add" from "reduce", due to price correction.

(Reporting by Shivani Tanna in Bengaluru)

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Westlife Foodworld Ltd WEST.NS:

• WESTLIFE FOODWORLD LTD - ELEVATES AKSHAY JATIA AS CEO

Source text: ID:nBSE9qPcGh

Further company coverage: WEST.NS

** Indian restaurant operator stocks jump between 3% and 10% after slew of demand-boosting measures in union budget

** Zomato ZOMT.NS and Swiggy SWIG.NS soar 6.5% and 7%, respectively

** Both were hit hard by cooling demand over last two months

** Among restaurant operators, Pizza Hut and KFC India franchisee Sapphire Foods SAPI.NS gains the most; Burger King's Indian operator Restaurant Brands Asia's RESR.NS up 3%, rising the least

** Domino's franchisee Jubilant Foodworks JUBI.NS gains 5%, Pizza Hut's other Indian operator Devyani Internatinal adds ~7%; McDonald's franchisee Westlife Foodworld WEST.NS advances 8.8%

** Finance Minister Nirmala Sitharaman says those earning up to 1.28 mln rupees ($14,791.53)/year won't have to pay any taxes

($1 = 86.5360 Indian rupees)

(Reporting by Nandan Mandayam in Bengaluru)

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Jan 29 (Reuters) - Westlife Foodworld WEST.NS, the operator of McDonald's MCD.N in India, reported a 59% drop in third-quarter profit on Wednesday, as cost-conscious consumers cut back on discretionary spending amid still-high food prices.

The restaurant operator's consolidated profit after tax stood at 70.1 million rupees ($810,123.66) for the three months to Dec. 31, lower than 172.5 million rupees a year ago.

($1 = 86.5300 Indian rupees)

(Reporting by Ananta Agarwal in Bengaluru; Editing by Mrigank Dhaniwala)

(([email protected];))

** Macquarie Equity Research anticipates uptick in demand for KFC in India, expects a turnaround for Pizza Hut, and a value-based recovery for McDonald's chains

** Devyani International DEVY.NS and Sapphire Foods SAPI.NS operate KFC and Pizza Hut chains in India, while Westlife Foodworld WEST.NS operates McDonald's

** Macquarie initiates coverage on DEVY and SAPI with "outperform" while reiterating the same on WEST

** There is near-term risk for KFC's same-store sales growth, but focus on value, strong competitive position in chicken, favorable base are expected to drive steady recovery - Macquarie

** Adds, pace of KFC store additions likely to be slower in SAPI vs DEVY due to longer gestation for chicken adoption in SAPI's KFC geographies

** Expects healthy EBITDA growth for DEVY in KFC given competitive position in chicken category

** For WEST, expects continued growth in footfalls buoyed by focus on value and launch of McCrispy chicken platform

** DEVY up 4.5% currently, while WEST up 0.2%; SAPI down 0.5%

** SAPI gained 16% in 2024, while DEVY and WEST shed 6% and 3%, respectively

(Reporting by Ashna Teresa Britto in Bengaluru)

(([email protected] ; ( +91 8078332441))

** Shares of India's McDonalds's operator Westlife Foodworld WEST.NS rise as much as 5.2% to 837.4 rupees, its highest since Sept. 27

** Goldman Sachs reiterates street high PT of 1,045 rupees, maintains "buy" rating

** Says positive impact of co's menu interventions expected to drive growth in Q3

** Co says confident of delivering positive same-store sales growth in Q3, will be better than peers, during interaction with GS

** Guest count to see decent growth in Q3, aided by soft base in year-ago quarter- GS

** More than 252,000 shares change hands, 2.2x its 30-day avg

** Rivals Domino's operator Jubilant Foodworks JUBI.NS rated "hold", KFC franchisees Devyani International DEVY.NS and Sapphire Foods SAPI.NS rated "buy" and Burger King operator Restaurant Brands Asia RESR.NS also at "buy"

(Reporting by Ashna Teresa Britto in Bengaluru)

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By Praveen Paramasivam, Shivangi Acharya

CHENNAI/NEW DELHI, Nov 13 - India's city dwellers are cutting spending on everything from cookies to fast food as persistently high inflation squeezes middle class budgets, threatening the country's brisk economic growth.

Slowing urban spending over the past three to four months has not only hurt the earnings of largest consumer goods firms, it has raised questions about the structural nature of India's long-term economic success.

Since the end of the pandemic, India's economic growth has been driven in large part by urban consumption, however, that now seems to be changing.

"There is a top end – the people with money are spending like that is going out of style," Nestle India Chairman Suresh Narayanan said.

"There used to be a middle segment, which used to be the segment that most of us fast moving consumer goods (FMCG) firms used to operate in, which is the middle class of the country, that seems to be shrinking."

Nestle India, which makes Kit Kats and other well-known goods, reported its first quarterly revenue drop since the COVID-hit June quarter in 2020.

While there is no officially defined income bracket for Indian middle class households, they are broadly estimated to account for a third of India's 1.4 billion people.

They are considered a key demographic both economically and politically, with middle class frustration seen as a significant factor behind Prime Minister Narendra Modi's weaker election performance this year.

Asia's third-largest economy is expected to expand 7.2% in the financial year ending March 2025, the fastest among its major peers.

Belying those rosy projections, however, are signs of a sharp slowdown in the household sector.

Indian urban consumption hit a two-year low this month, according to an index published by Citibank that captures indicators such as airline bookings, fuel sales and wages.

"While some of the fall could be temporary, the key macro drivers remain unfavourable," Citi's chief India economist Samiran Chakraborty said.

Growth in inflation-adjusted wage costs for listed Indian firms - a proxy for earnings of urban Indians - has remained below 2% for all the three quarters of 2024, well below the 10-year average of 4.4%, data from Citi showed.

Chakraborty cites this as a key factor impacting urban consumption, along with declining savings and tighter rules for personal loans.

Headline inflation has averaged 5% over the past 12 months, but food inflation has held above 8% as weather shocks elevated prices of vegetables, cereals and other essential foods. In October, retail inflation hit a 14-month high of 6.2% while food prices jumped to 10.9%.

Anecdotal data suggests retail sales rose close to 15% year-on-year during the 2024 festive season, which runs from August to November, Nomura said in a note last week, about half last year's pace.

"During this festival season, we have not spent at all," said Rajwanti Dahiya, 60, who survives on her husband's monthly pension of 30,000 Indian rupees ($356.76).

"Savings are low, barely there."

A 'SHRINKING' MIDDLE

India's central bank expects 7.2% GDP growth for the fiscal year ending March 2025 on the back of improved rural demand and a strong services sector.

Higher government investment could also support demand, said Rahul Bajoria, head of India and ASEAN economic research at Bank of America.

"If government spending kicks in, that probably does have some multiplier effects on private consumption spending as well," said Bajoria, who expects GDP growth at 6.8% in the current financial year.

Some are less optimistic with Citi and IDFC First Bank economists expecting GDP growth in the July-September quarter to miss the central bank's projected 7%, weighed by slower urban consumption.

That pessimism has hit consumer stocks with the Nifty FMCG index .NIFTYFMCG declining 13% since Oct. 1, compared with a 7.4% drop in the benchmark Nifty 50 .NSEI.

Of the FMCG index's 15 constituent firms, only one reported a pickup in sales volume growth in the September quarter.

Consumers in large cities are swapping branded items from hair oil to tea for cheaper unbranded alternatives, reflected in the first sales volume decline in 11 quarters for the foods and refreshment group at Hindustan Unilever.

"We see the growth in big city standing down, although in smaller cities and in rural the growth continues to be good," Hindustan Unilever chief executive Rohit Jawa said last month, after reporting lower than expected earnings.

Consumers are also cutting back on dining out.

Fast-food chains such as McDonald's, Burger King, Pizza Hut and KFC posted same-store sales declines, earnings showed.

While people are still coming, they are choosing cheaper meals, Rajeev Varman, CEO at Burger King operator Restaurant Brands Asia RESR.NS said after posting a 3% drop in quarterly same-store sales.

"We prefer budget-friendly stores that give good deals and discounts to manage our monthly expenditure," said 37-year old Avinash Crasto, a Mumbai marketing and sales executive who has a family of four and identifies as middle class.

($1 = 84.0640 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Shivangi Acharya in New Delhi; Editing by Sam Holmes)

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Adds details, background in paragraphs 2-9

Oct 24 (Reuters) - Westlife Foodworld WEST.NS, the operator of McDonald's MCD.N restaurants in west and south India, reported a nearly two-fold drop in quarterly profit on Thursday, missing estimates, on weak demand as cost-conscious customers cut back on spending.

The restaurant operator's consolidated profit after tax stood at 3.6 million rupees ($42,832.16) for the second quarter ended Sept. 30, sharply lower than 223.7 million rupees a year ago.

Analysts, on average, had expected 48.9 million rupees, according to data compiled by LSEG.

Westlife's shares fell as much as 5% after the results.

Quarterly same-store sales declined 6.5%, owing to subdued in-store business, which makes up more than half of its sales.

Global fast-food chains are struggling to attract consumers in India, a highly price-sensitive market, where customers have been cutting back on discretionary spending due to rising prices of essentials, including food.

Westlife, too, has focused more on cheaper meals and menu items, including the launch of a 'Chicken Surprise' burger at less than $1.

However, overall revenue stayed nearly flat, edging up 0.5% to 6.18 billion rupees due to the addition of several new stores. It had reported a revenue growth of 7.4% in the corresponding quarter a year earlier.

Westlife kicks off earnings in the sector, which includes Domino's operator Jubilant Foodworks JUBI.NS, KFC franchisees Devyani International DEVY.NS and Sapphire Foods SAPI.NS, and Burger King operator Restaurant Brands Asia RESR.NS.

($1 = 84.0490 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai and Ashna Teresa Britto in Bengaluru; Editing by Abinaya Vijayaraghavan)

(([email protected]; +91 867-525-3569;))

** Kaushalya Logistics KAUH.NS jumps as much as 11.7%

** Co signs Letter Of Intent with McDonald’s to open an outlet in one of its properties

** Stock on track to snap 2 weeks of losses

** More than 70,000 shares traded in stock's busiest day in over a week

** KAUH last up 6.8%; gains 5.6% so far this week

(Reporting by Meenakshi Maidas in Bengaluru)

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** Bernstein starts coverage of supermarkets operator Dmart AVEU.NS, fashion retailer Trent TREN.NS, Jubilant FoodWorks JUBI.NS, Devyani International DEVY.NS with "Outperform"

** Says Dmart has "clear value positioning"; Trent benefiting from private label portfolio

** Dominos India franchisee Jubilant and KFC India operator Devyani to see boost from revival in fast food demand, menu innovation, expansion

** Consumers beyond the top 10% of income pyramid and outside the top 40 cities to boost retail, restaurant sectors: Bernstein

** Brokerage however rates fashion retailer Aditya Birla Fashion & Retail ADIA.NS and McDonald's operator Westlife Foodworld WEST.NS "Underperform"

** Rigid cost structure to weigh on WEST profitability; debt overhang and weak growth in legacy brands to hurt ADIA - brokerage

** Starts Pizza Hut operator Sapphire Foods SAPI.NS with "Marketperform", citing high valuations

** FMCG index .NIFTYFMCG is up 10.14% in 2024, underperforming the 15.3% rise in Nifty 50 .NSEI

** TREN up 6%, DEVY up 1.2% while AVEU is trading 0.2% lower; ADIA, JUBI, WEST, SAPI down 0.3%-1.6% - Exchange data

(Reporting by Bharath Rajeswaran in Bengaluru)

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** Shares of Jubilant FoodWorks JUBI.NS up 8.3% to 648.6 rupees, their highest since Feb. 2022

** The Domino's India franchisee reported near two-fold jump in Q1 profit on Friday

** Stock eyes busiest trading session since November 2022, volumes 6x the 30-day avg

** Analysts' avg rating on stock is "Hold", in line with rating on peer Westlife Foodworld WEST.NS while Restaurant Brands Asia RESR.NS, Sapphire Foods SAPI.NS are rated "Buy", per LSEG data

** Median PT on JUBI is 567 rupees - a 5.3% discount on last close

** Stock up 15% YTD vs 13% gains in SAPI, 4% fall in RESR and ~3% loss in WEST

(Reporting by Manvi Pant in Bengaluru)

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BENGALURU, July 25 (Reuters) - Westlife Foodworld WEST.NS, the operator of McDonald's MCD.N restaurants in west and south India, reported an 89% plunge in first-quarter profit on Thursday, hurt by frail demand as budget-conscious customers cut back on eating out.

Consolidated profit after tax fell to 32.5 million rupees ($388,412.17) for the three months ended June 30 from 288.3 million rupees a year ago.

($1 = 83.6740 Indian rupees)

(Reporting by Manvi Pant in Bengaluru)

(([email protected]; +918447554364;))

** Shares of Devyani International DEVY.NS down 3.3% at 150.3 rupees

** KFC's India operator posted Q4 loss vs profit a year earlier

** Stock was up 0.3% before results

** Rivals Sapphire Foods SAPI.NS and Westlife Foodworld WEST.NS posted Q4 profit slumps

** DEVY, SAPI stock rated "buy" on avg by analysts, WEST rated "hold" - LSEG data

(Reporting by Varun Vyas in Bengaluru)

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