RBA Q3 FY26 earnings call.
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Revenue
₹715 Cr
verified against source
Revenue YoY
16.1%
reported change
EBITDA
₹406 Cr
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 strong Q3 FY26 with consolidated revenue of ₹577 crore (+16.1% YoY), driven by 4.5% SSSG and 67 net new restaurant additions reaching 577 stores. Company EBITDA surged 31.5% YoY to ₹406 crore—the highest ever reported—supported by gross margin expansion to 69.9%, already surpassing the FY29 target of 70% set three years ahead of schedule. The delivery profitability improved by 2 percentage points through reduced discounting, while supply chain initiatives brought food closer to restaurants. India's BK business reported 11 consecutive quarters of positive sales with 92% digital orders and 47% MAU growth. Indonesia's BK turned around with 4 consecutive quarters of positive SSSG, though gross margins lag at 55% versus India's 70%. A ₹1,600 crore equity infusion from Inspir Global (35% stake) is underway, triggering an open offer. Management flagged Popeyes Indonesia as requiring urgent attention and will release revised multi-year guidance next quarter. Key risks include competitive intensity from McDonald's aggressive pricing, Indonesia execution uncertainty, and new promoter alignment on strategic priorities.
Colored figures show movement against the previous available record.
Guidance to track
- Management targets approximately 600 restaurants by March 31, 2026, implying roughly 23 additional net additions in Q4 FY26.
- Guidance range of 60-80 net new restaurants per year, though FY26 is tracking at midpoint given back-half-weighted opening schedule. Future years to see more even quarterly distribution.
- Having reached 70% gross margin three years ahead of the FY29 target, management will announce updated multi-year outlook (3-5 year plan) on margins, expansion, and strategy in the next earnings call.
- Definitive agreement signed with Inspir Global Group for ₹900 crore equity infusion via preference allotment plus ₹700 crore warrants at ₹70/share, resulting in ~35% promoter holding post-transaction.
Risks flagged
- With only 25 Popeyes restaurants in Indonesia and no clear marketing support or growth path, management acknowledged an urgent need to address this business. No specific turnaround plan disclosed on the call.
- When directly asked about Indonesia business strategy and whether it aligns with the incoming Inspir Global promoter's views, management gave vague responses about alignment without specifics. The new promoter's stance on Indonesia remains unclear pending their own due diligence.
- McDonald's has aggressively slashed value combo prices from ₹119 to ₹99, matching RBA's meal combo pricing. Management stated value is a long-term strategic pillar (third year of 99 rupee strategy) with no planned price cuts, but competitive pressure may intensify share competition.
- Employee expenses surged ~20-21% in Q3 due to hiring and training ~1,000 staff for 44 new restaurants before they opened. Management expects normalization in Q4 but did not provide specific target percentage for employee cost as percentage of revenue.
Key quotes
- Company EBITDA which is the highest we have reported ever is at 406 crores that's up 31.5% year-over-year. So some very very strong results on the India business.
- We've reached 70% [gross margin] more than three years ahead of schedule and this has come on the back of delivery profitability as well as supply chain and distribution initiatives.
- Value is not tactical. Value strategy is a long-term strategy. It's not tactical that you do it overnight. We have already got a very strong and probably the strongest value offering in this country.
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