Restaurant Brands Asia (RBA) Q2 25/26 earnings summary

Executive summary

• Maintained focus on driving dine-in traffic and digital transformation, with 91% of transactions now digital.

• Achieved consolidated revenue of INR 7,034 million in Q2 FY26, up 11.2% year-over-year, led by strong India performance and continued store expansion.

• India operations saw 15.6% revenue growth year-over-year, with 533 stores as of September 30, 2025, and positive same store sales growth.

• Indonesia's Burger King business shows steady ADS growth, but overall profitability remains challenged and Popeyes continues to underperform.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.

Financial highlights

• Q2 revenue reached INR 568 crores in India, up 15.6% year-over-year; consolidated revenue was INR 7,034.25 million, up from INR 6,324.28 million in Q2 FY25.

• Gross margin in India improved to 68.3%, with restaurant EBITDA margin at 10.4% and company EBITDA margin at 5%.

• Consolidated company EBITDA (pre-Ind AS 116) rose 198.7% year-over-year to INR 113 million.

• Standalone net loss for Q2 FY26 was ₹202.12 million; consolidated net loss was ₹633.29 million, both showing improvement over the previous year.

• Indonesia reported a company EBITDA loss of IDR 33 billion, with gross margin at 56.9% and continued negative profitability.

Outlook and guidance

• Plans to open 60-80 stores annually in India through FY 2029, targeting 800 stores, with most new outlets already under construction.

• Gross margin target of 70% in India by FY 2029, with improvements expected sooner due to ongoing initiatives.

• Management continues to focus on expansion and operational efficiency, supported by capital raised through QIP.