Retail – Sector Update – Demand mixed, risk reward favorable
Published on 27 Mar 2026
We expect the QSR sector to witness a mixed demand environment in the near term, with recovery remaining uneven across players and formats. While 4QFY26 saw a gradual sequential improvement supported by event-led demand (T20 World Cup) and traction in value offerings, underlying consumption trends continue to remain volatile amid pressure on discretionary spending. Category leaders such as Domino’s are gaining share, driven by superior delivery execution, faster turnaround times, and aggressive value-led strategies, while peers like Pizza Hut continue to face demand and throughput challenges amid operational inefficiencies. Westlife’s performance remains constrained by muted demand trends in south India although QoQ growth seems to be picking up. RBA has seen good demand partly aided by cricket T20 world cup. We upgrade WFL from Hold to Accumulate and retain Buy on Jubilant Foodworks while retaining Accumulate on RBA.
