Wow! Momo Foods Achieves 30.5% Growth in Revenue
Wow! Momo Foods has reported a significant rebound, achieving a 30.5% year-on-year growth in operating revenue during the last fiscal year after facing sluggish growth over the previous two years. Despite this growth, losses increased by 27.6%, nearing the Rs 150 crore mark. Operating revenue rose to Rs 613.55 crore in FY25 from Rs 470 crore in FY24, according to consolidated financial statements reviewed by Startup Superb.
About Wow! Momo Foods
Founded in 2008 by Sagar Daryani and Binod Homagai, Wow! Momo Foods operates three quick-service restaurant brands: Wow Momo, Wow China, and Wow Chicken.
Operating Revenue Breakdown
The majority of the operating revenue, accounting for 99%, came from product sales, which experienced a 30% increase, rising to Rs 608.33 crore in FY25 from Rs 467.87 crore in FY24. Other operating revenue was Rs 5.22 crore.
Total Income and Other Earnings
The Kolkata-based QSR chain also generated Rs 16.8 crore from other income, bringing total income for FY25 to Rs 630 crore, compared to Rs 481 crore in FY24.
Expenditure Overview
On the expenditure side, material consumption was the primary cost, climbing 45.9% to Rs 232 crore in FY25 from Rs 159 crore in FY24. Employee benefit expenses saw a rise of 15.8%, reaching Rs 139 crore from Rs 120 crore. Additionally, finance costs increased to Rs 59 crore, while depreciation and amortisation costs rose to Rs 123 crore. Advertising expenses surged by 78% to Rs 47.25 crore, and commission expenses increased by 44% to Rs 46.67 crore. Rent expenses also saw a 62.6% increase, amounting to Rs 32.78 crore.
Overall Financial Performance
Overall, Wow! Momo’s total expenses rose by 30.3% to Rs 778 crore in FY25, up from Rs 597 crore in FY24. The company spent Rs 1.27 for every Rs 1 earned in operating revenue, remaining consistent with the prior year. The heightened expenditure continued to impact profitability, with the company’s losses increasing to Rs 148 crore in FY25, up from Rs 116 crore in FY24. EBITDA was reported at Rs 17.1 crore, with the EBITDA margin declining to 2.79% from 6.12%. ROCE was recorded at -14.73%.
Current Assets Status
By the end of FY25, Wow! Momo’s total current assets were Rs 215.56 crore, which included Rs 117.13 crore in cash and bank balances. This is compared to Rs 225.66 crore and Rs 175.52 crore in FY24, respectively.
Future Outlook
The financial results for FY25 indicate that Wow! Momo Foods has regained momentum in terms of revenue but still faces challenges in achieving sustainable profitability. The significant rise in input, occupancy, and customer acquisition costs reveals that scaling the business has yet to provide the expected operational leverage. Moving forward, the brand’s success will likely depend on enhancing unit economics and deriving greater value from its expanding network, rather than merely increasing the number of outlets.