Restaurant Brands Asia Q2 FY27 results: net loss narrows to ₹23.79 crore, revenue up 20.1%

How did Restaurant Brands Asia perform in Q2 FY27?

Restaurant Brands Asia reported consolidated revenue of ₹844.85 crore in Q2 FY27, up ₹141.43 crore or 20.1% from ₹703.42 crore in Q2 FY26. Total income rose 21.8% to ₹866.84 crore. EBITDA rose 55.1% to ₹110.07 crore and the margin widened by 2.9 percentage points to 13.0%.

The company reported a net loss of ₹23.79 crore in Q2 FY27, against a net loss of ₹63.33 crore in Q2 FY26. Loss attributable to owners narrowed to ₹19.57 crore from ₹58.59 crore, and basic EPS was ₹-0.29 against ₹-1.01. Against Q1 FY27, revenue rose 2.7% to ₹844.85 crore, EBITDA rose 9.9% to ₹110.07 crore, and the loss narrowed to ₹23.79 crore from ₹33 crore.

On a standalone basis, revenue for the quarter was ₹705.57 crore, up 24.1% from a year earlier, while the company reported a net loss of ₹15.59 crore against a net loss of ₹20.21 crore. The standalone figures cover the India business, which is also presented as a segment.

What changed in Restaurant Brands Asia's costs and profit?

Total expenses rose ₹115.63 crore or 14.9% to ₹890.63 crore from ₹775 crore, below the pace of revenue growth. Cost of materials was ₹268.88 crore, up ₹30.53 crore or 12.8%; employee cost was ₹136.22 crore, up ₹13.06 crore or 10.6%; and finance costs were ₹50.10 crore, up ₹4.49 crore or 9.8%.

Depreciation rose ₹8.82 crore or 9.1% to ₹105.75 crore, while other expenses increased ₹58.73 crore or 21.7% to ₹329.68 crore. Other income rose ₹13.74 crore or 166.5% to ₹21.99 crore. There was no exceptional item, and the tax charge was unchanged at ₹0 crore.

Against Q1 FY27, cost of materials rose ₹11.27 crore to ₹268.88 crore and employee cost rose ₹5.95 crore to ₹136.22 crore, while other expenses fell ₹4.86 crore to ₹329.68 crore. Other income rose ₹2.19 crore to ₹21.99 crore. No exceptional item was reported and the tax charge remained unchanged.

How did the first half of FY27 go?

In the first half of FY27, Restaurant Brands Asia reported revenue of ₹1,667.46 crore, up ₹266.31 crore or 19.0% from ₹1,401.15 crore in H1 FY26. Total income rose 19.4% to ₹1,709.25 crore from ₹1,431.37 crore, while total expenses for the quarter period were ₹890.63 crore against ₹775 crore in the year-ago quarter.

The net loss for H1 FY27 was ₹56.79 crore, compared with a net loss of ₹108.76 crore in H1 FY26. Loss before tax was also ₹56.79 crore against ₹108.76 crore, and EPS improved to ₹-0.72 from ₹-1.73.

What do the balance sheet and cash flow show?

As of 30 September 2026, total assets stood at ₹4,330.58 crore against ₹3,382.31 crore at 31 March 2026, while total equity rose to ₹1,653.95 crore from ₹688.59 crore. Borrowings fell to ₹246.27 crore from ₹269.85 crore and cash declined to ₹22.20 crore from ₹30.62 crore. Inventories were ₹41.83 crore against ₹38.76 crore, trade receivables ₹49.35 crore against ₹46.18 crore, and trade payables ₹339.54 crore against ₹340.19 crore.

In H1 FY27, net cash from operating activities was ₹219.50 crore against ₹159.85 crore in H1 FY26. Investing cash flow was negative ₹1,082.30 crore against negative ₹452.87 crore, while financing cash flow was positive ₹843.37 crore against negative ₹225.28 crore. Capital expenditure was ₹189.65 crore, up from ₹181.39 crore.

How has Restaurant Brands Asia done over the last 8 quarters?

Revenue has risen year on year in each of the last eight quarters and reached ₹844.85 crore in Q2 FY27, the highest in the series. The lowest quarterly revenue was ₹632.55 crore in Q4 FY25. The previous quarter's revenue was ₹822.61 crore, so the direction at the end of the series was upward.

The EBITDA margin bottomed at 10.1% in Q2 FY26, peaked at 13.4% in Q4 FY26 and was 13.0% in Q2 FY27. The net loss bottomed at ₹63.33 crore in Q2 FY26 and narrowed to ₹23.79 crore in Q2 FY27, the lowest loss in the series of quarters shown, from ₹33 crore in Q1 FY27.

Which businesses drove the quarter?

India, the larger business, reported revenue of ₹705.57 crore in Q2 FY27, up 24.1% from ₹568.65 crore in Q2 FY26, with EBIT of ₹110.89 crore against ₹77.60 crore and an EBIT margin of 15.7%. The investor presentation reported India same-store sales growth of 14.0% and average daily sales of INR 7,056 thousand for the quarter.

Indonesia reported revenue of ₹139.28 crore, up 3.3% from ₹134.77 crore in Q2 FY26, with EBIT of negative ₹0.83 crore against negative ₹6.64 crore and an EBIT margin of negative 0.6%. The presentation showed a combined Indonesia store count of 162 and average daily sales of INR 96 thousand for Burger King Indonesia, while Popeyes Indonesia margins remained negative.

What else did the company announce?

The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026 along with the statutory auditors' limited review report. It appointed Shivakumar Dega as an Additional Director, Non-Executive and Independent, and Anand Bathiya as an Additional Director, Non-Executive and Non-Independent, both effective 29 October 2026.

The board approved the appointment of Sumit Zaveri as Chief Executive Officer for the India Business with effect from 1 November 2026, changing his designation from Group Chief Financial Officer and Chief Business Officer. It also approved investment of not exceeding IDR 250 billion in PT Sari Burger Indonesia through optionally convertible preference shares, conversion of an IDR 371.50 billion loan into such shares, and a change in the terms of NCPS aggregating IDR 175 billion, subject to shareholder approval.

The board approved, subject to shareholder approval, raising the limits for investments, loans, guarantees and security under Section 186 of the Companies Act, 2013 from INR 2,500 Crore to INR 4,500 Crore. No dividend was announced in the same-day filings reviewed. The board meeting was held on 29 October 2026, and the trading window was to reopen from 1 November 2026.

What did Restaurant Brands Asia's management say?

Management said the potential pace of annual restaurant openings in India rises from 50-70 to 80-100 restaurants in future expansion cycles, and that restaurant EBITDA is expected to move from about 13% toward 15% as Families and kids-program volumes provide operating leverage. Gross margin is expected to remain around 70.4%-70.5%, with an improvement path that is not expected to be linear. The Families programme launches in November 2026 and the associated kids programme is planned for December 2026.

On the earnings call on 3 November 2026, management said India's same-store sales growth was 14% for a second consecutive quarter and that the Avengers programme was to begin pre-booking immediately after the call. Management said Indonesia's Super Hemat campaign added about 35-40 daily visits per restaurant, and that no new Burger King Indonesia stores are planned this year or next year while existing assets are repaired. Management also said liquidity was close to ₹1,000 crore, with another ₹450 crore expected from warrants, and that Indonesia capital would be released in milestone-linked tranches.

Rajeev Varman, Group Chief Executive Officer, said the company was not going to take a cowboy approach to expansion and that expansion would be structured rather than radical. He said the check had remained at a similar level for many quarters and that it was all coming through traffic. Sumit Zaveri, Chief Executive Officer for India Business, said the company would push itself to build on the momentum of the team's effort. Management identified risks including pricing and grocery costs, dilution from new stores, Popeyes Indonesia's declining average daily sales, continued company-level losses in Indonesia, and undecided capital allocation beyond strengthening existing businesses.

How did Restaurant Brands Asia shares react?

The results were filed after market hours on 29 October 2026. The stock fell 0.9% within five minutes of the filing, 3.3% after 15 minutes and 2.8% after 30 minutes. From the pre-results close of ₹92.38, the reaction-day close was down 5.2% at a price of ₹96.00 on the measure used for the reaction window.

By the next day's close, the stock was down 5.8% from its pre-results close. On the reaction day, the median move for the other stocks in the Restaurants industry was negative 1.6%, so RBA's move was 3.6 percentage points weaker than the industry median; the Nifty Microcap 250 fell 2.5% over the same close. The past results-day moves were 19.3% on 3 August 2026, 1.2% on 14 May 2026, negative 0.2% on 3 February 2026 and negative 6.8% on 30 October 2025.