Neutral Westlife Foodworld Ltd for the Target Rs. 600 by Motilal Oswal Financial Services Ltd
* We expect 7% revenue growth, led by 10% store growth (15 store additions). Same-store sales expected to be flat YoY. There is no material change in the demand environment; it remains subdued.
* ADS is expected to decline 3% YoY to INR156k.
* Gross margin is expected to improve 190bp to 72% benefiting from stable RM and the GST rate cut on RM.
* We model EBITDA Pre-Ind AS margins at 9.3% for 3QFY26, up marginally 20bp YoY. It is impacted due to negative operating leverage.

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