RBA Q2 FY26 earnings call.
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Revenue
₹703 Cr
verified against source
Revenue YoY
15.6%
reported change
EBITDA
Pending
latest reported figure
Source
screener in
record provenance
Actual signal trajectory
Where this quarter sits.
Quarter read
What the record says.
Restaurant Brands Asia delivered a solid Q2 FY26 with India revenue of ₹568 crore (up 15.6% YoY), driven by 10 consecutive quarters of positive traffic SSSG. Gross margin improved 60bps to 68.3% through supply chain efficiencies and delivery margin optimization, though restaurant EBITDA margin held at 10.4% due to intentional headcount investments for new service initiatives. Company EBITDA came in at ₹28.4 crore, ₹4 crore ahead of year-ago. Indonesia remains a drag with consolidated loss of ₹33 billion (IDR) as Burger King shows green shoots (ADS up 1-2 million daily vs LY) but Popeyes continues to burn cash. Management reiterated its 60-80 annual store target (on track for 580 by FY26 year-end) and targets 70% gross margin by FY29. Key risks: unresolved Indonesia exit question, competitive intensity from value-focused QSR entrants, and consumer sentiment dependency for SSSG to accelerate beyond 115-120 ADS levels. Utility cost savings from new boiler rollout will be material in FY27.
Colored figures show movement against the previous available record.
Guidance to track
- Currently at 533 India stores; targeting 580 by FY26 year-end with H2 pace of 45-50 openings. Near-term goal of 800 stores by FY29.
- Gross margin improved to 68.3% in Q2 from 67.7% in Q1. Management expects continued improvement driven by supply chain localization, new distribution centers, and boiler efficiency gains.
- New boiler (50% energy reduction vs current) rolling out to all restaurants by March/April 2026; e-coolers also being installed. Full impact expected in FY27.
- Delivery business grew revenue significantly while improving margins by 1pp through aggregator relationship optimization and menu mix changes.
Risks flagged
- Popeyes (25 stores) continues to burn cash in Indonesia. Management has assembled a dedicated team but acknowledged exploring potential exit options alongside turnaround efforts. No timeline or decision framework disclosed.
- Analyst raised concern about structural ceiling at current ADS levels. Management cited market conditions and value-shift in consumption as factors limiting upside; CRM-driven frequency optimization expected to unlock next leg of growth.
- Company invested 0.9% of EBITDA in additional headcount for table service and SOS rollout, temporarily compressing restaurant EBITDA margins. Management expects reversal in 2-3 quarters as crew efficiency normalizes.
- Management acknowledged post-COVID consumer shift toward value; question remains whether new QSR entrants competing at value tier will further pressure APS and traffic growth rates.
Key quotes
- We are disappointed to understand that that's how it's going to happen. Very happy with October. I have very high hopes for this entire quarter. Looking forward to seeing the December sales.
- The journey is on clear scientific architecture of distribution cost as well as bringing in suppliers closer to the restaurants. As we continue to do these two things, our journey from this to 70, I mean we have projected FY29, I think we're going to achieve it much sooner than that.
- We continue to grow that business at a much better margin profile as well. A focus on improving profitability on the delivery side is also working in our favor when we look at the margin numbers.
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