Restaurant Brands Asia Limited (NSE:RBA), a leading Quick Service Restaurant (QSR) operator holding the exclusive master franchise rights for Burger King in India and Indonesia, reported an 11.8% year-over-year growth in consolidated revenue to INR 7,147 million for Q3 FY26, driven by a robust 16.5% revenue increase in India and record-high gross margins.
Restaurant Brands Asia achieved its 70% India gross margin target ahead of schedule and signed a definitive agreement for Inspira Global to acquire a controlling stake with a capital infusion. The company operates Popeyes in Indonesia, has added the BK Café sub-brand, and is pursuing a digital-first strategy focused on menu innovation and value leadership.
Key Financial Metrics: Q3 and 9M FY26
RBA demonstrated robust top-line growth in its India operations during the quarter ended December 31, 2025:
- India Q3 FY26: Revenue reached INR 5,773 million, a 16.5% year-over-year (YoY) increase. Gross margins improved to 69.9%, driven by supply chain efficiencies.
- Company EBITDA (Pre-Ind AS 116) stood at INR 406 million, up 31.5% YoY.
- India 9M FY26: Revenue totaled INR 16,983 million with a gross profit of INR 11,657 million (68.6% margin).
- Indonesia Q3 FY26: Revenue was INR 1,373 million, though the segment faced a company EBITDA loss (Pre-Ind AS 116) of INR 159 million.
- Consolidated Q3 FY26: Total revenue from operations reached INR 7,147 million, representing 11.8% YoY growth.
- Consolidated company EBITDA (Pre-Ind AS 116) surged 85% to INR 246 million.
Valuation
The company recently announced a definitive agreement where Inspira Global will purchase an 11.26% stake from QSR Asia Pte. Ltd. for approximately Rs 460 crores. This transaction, executed at Rs 70 per share, implies a significant valuation for the entity as Inspira Global seeks to acquire a controlling interest.
Operational & Business Highlights
- RBA has successfully transitioned into a digital-first brand, with 92% of all orders now coming through digital channels.
- The company has implemented table service and digital ordering across its entire restaurant network. In India, Average Daily Sales (ADS) reached INR 117,000, supported by an 11th consecutive quarter of positive dine-in traffic growth.
Key Achievements & Milestones
- A primary milestone achieved in Q3 FY26 was reaching a 69.9% gross margin in India, a target the company had originally set for FY29.
- Additionally, RBA’s Customer Relationship Management (CRM) initiatives led to a 47% growth in monthly active users over the previous year.
Geographic Presence & Target Customers
- As of December 2025, RBA operates 577 stores in India and 163 stores in Indonesia.
- The brand primarily targets Gen Z and Millennials by leveraging “Hallyu Wave” trends, such as the Korean Spicy Fest, and regional festivals like Diwali and Onam to build emotional connections. Its “Value Leadership” strategy, including “2 for 79” crispy veg deals, specifically targets price-conscious younger demographics and larger groups through “Meals for 2”.
Relevant Industry Metrics
RBA’s performance is measured against key QSR metrics:
- Same-Store Sales Growth (SSSG): India recorded a 4.5% SSSG in Q3 FY26.
- Delivery Profitability: Improved by over 2% YoY due to strategic pricing and reduced discounting.
- Expansion: The company aims to add 60 to 80 new restaurants annually in India.
Overall Assessment
Restaurant Brands Asia is in a strategic transition, with its India business delivering strong profitability and margin expansion, while Indonesia continues to drag consolidated earnings due to widening losses at Popeyes. The proposed ₹1,500 crore capital infusion by Inspira Global should strengthen the balance sheet, and successful replication of India’s margin efficiencies in Indonesia could drive long-term value under the new controlling ownership.