Neutral Westlife Development Ltd For Target Rs. 775 by Motilal Oswal Financial Services Ltd

* We expect 8% revenue growth, led by 11% store growth (10 store addition). SSSG is expected to be 1-2% on a weak base. There was no material change in the demand environment, which remained subdued.
* ADS is expected to decline 3% YoY to INR165k in 1QFY26.
* Gross margin is expected to remain at 70.3%, contracting 30bp. Operating margin is expected to decline marginally 20bp YoY to 12.8%.
* We model EBITDA Pre-Ind AS margins at 8.2% for 1QFY26, flat YoY.
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