Company Update : Restaurant Brands Asia Ltd by Motilal Oswal Financial Services Ltd
Inspiring India performance with 3% SSSG & 16% EBITDA growth
Consolidated performance
* India business revenue grew 16% YoY to INR5.7b (est. INR5.6b), led by 15% YoY store additions.
* Same-store sales growth (SSSG) stood at 2.8% (est. 2.5%), led by consistent growth across dine-in & delivery channels.
* India business ADS rose 1% YoY to INR119k.
* The company added 14 stores in 2QFY26 in India, taking the total store count to 533.
* The BK Café store count reached 507 (95% of total BK stores).
* India GP was up 17% YoY to INR3.9b (est. INR3.8), while margin improved 80bp YoY and 60bp QoQ to 68.3%, backed by a change in menu mix and supply chain efficiencies.
* India ROM (Pre-Ind-AS) increased 14% YoY to INR592m, while the margin dipped 20bp YoY to 10.4% (est. 10.2%).
* EBITDA (Pre-Ind-AS) rose 16% YoY to INR284m. The margin was flat YoY at 5%.
* EBITDA (Post-Ind-AS) was up 16% YoY to INR813m (est. INR794m). The margin improved 10bp YoY to 14.3% (est. 14.1%).
* Higher operating costs and interest led to a loss in the India business of INR202m in 2QFY26 (vs. the estimated loss of INR146m).
Indonesia business
* Indonesia revenue declined by 4% YoY to INR1,348m due to store rationalization (7% YoY dip in BK store count) and geopolitical headwinds.
* BK’s ADS was up 7% YoY at IDR18.1m.
* The company closed three BK stores during the quarter (136 BK stores/25 Indonesia Popeyes stores).
* Indonesia GP declined 2% YoY to INR767m, with gross margin expanding 110bp YoY to 56.9% (56.7% in 1QFY26).
* EBITDA (Post-Ind-AS) was a loss of INR51m in 2QFY26 vs. a loss of INR87m in 2QFY25 and a profit of INR10m in 1QFY26.
* Indonesia ROM (Pre-Ind-AS) reported a loss of INR63m in 2QFY26 vs. a loss of INR67m in 2QFY25 and a profit of INR2m in 1QFY26.
* EBITDA (Pre-Ind-AS) posted a loss of INR170m vs. a loss of INR206m in 2QFY25.
Consolidated business
* Consolidated revenue grew 11% YoY to INR7b, led by healthy India business performance, while the Indonesia business continued to be a laggard.
* Consolidated GP grew 13% YoY to INR4.65b, and the margin expanded 120bp YoY and 70bp QoQ to 66.1%.
* Consolidated reported EBITDA (Post-Ind-AS) rose 24% YoY to INR762m, and the margin improved 110bp YoY to 10.8%.
* High operating costs and interest costs led to a consolidated loss of INR633m.
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SEBI Registration number is INH000000412
