Restaurant Brand Q2 FY27 Earnings Call — Analysis (NSE: RBA)

RBA delivered 20% YoY consolidated revenue growth to ₹844 Cr and a 281% surge in company EBITDA to ₹43.2 Cr, driven by 14% India SSSG and stabilizing Indonesia operations.

3 Nov 2026 · Analysis by Alpha Inflection

Result quality: stable — Results context unavailable. Management sentiment: optimistic.

The take

Q2FY27 Consolidated Revenue ₹844 Cr ( +20% YoY ) . Guidance raised — unspecified indonesia bk ads improvement 5 million IDR increase to 25 million ADS . New story: India traffic-driven SSSG momentum .

Results

Consolidated revenue grew 20% YoY to ₹844 Cr; consolidated company-level EBITDA rose 281% YoY to ₹43.2 Cr with India delivering 14% SSSG and ₹55 Cr EBITDA.

Financial highlights

Guidance

Management plans to accelerate India store openings from 50–70 stores historically to 80–100 restaurants annually, while committing ₹130 Cr in milestone-based tranches for Indonesia asset upgrades.

What management committed to

• [India] Families program will be launched in November [Q3 FY27] with a kids program and Avengers co-branding. — Q3FY27
• [India Burger King] is targeting a run rate of 80 to 100 new restaurant openings annually, up from the previous trajectory of 50 to 70. — 80-100, unspecified future
• [Indonesia Burger King] targets improving average daily sales (ADS) by 5 million IDR per restaurant to reach approximately 25 million IDR ADS. — 5 million IDR increase to 25 million ADS, unspecified

Key themes

India growth acceleration and Indonesia turnaround

How the narrative shifted

• India traffic-driven SSSG momentum: 14th consecutive quarter of positive dine-in traffic growth; value and premium innovation (Peri-Peri, Korean) driving sustained 14% SSSG with no check-price increases.
• Gross margin structural expansion: Diluted from a pure expansion story to one of absorbing external headwinds while progressing toward the target.
• Indonesia BK turnaround gaining traction: Shifted from cautious testing to confident execution with measurable early results.
• Popeyes strategic uncertainty: Popeyes remains a loss-making drag; active discussions with brand owners for a solution; restaurant EBITDA still negative.
• Digital foundation and CRM future: Progressing from building the foundation to deploying CRM and loyalty, now explicitly linked to the new Families pillar.
• New promoter and capital allocation: Working with promoters on a robust capital plan; ~1,000 crores cash in hand; no immediate plans to deploy for expansion beyond existing business strength; plan expected next quarter.
• Industry demand recovery: Shifted from a purely India backdrop to a broader tailwind covering Indonesia's Western QSR market as well.
• Input cost pressure on gross margin: Dip explained as a market-wide headwind rather than a strategy failure; management expresses confidence the effect is not long-term.
• Family and kids segment expansion: Evolved from a traffic-only strategy to adding a family/kids pillar to sustain volume leverage.

Operational commentary

• India store footprint reached 607 restaurants at Q2FY27 close and 619 as of the earnings call date across 144 cities, with 12 new stores opened in October alone.
• Launched a new strategic pillar, 'Families', debuting with a dedicated kids program and an Avengers co-branded platform across product and packaging.
• LTO innovation momentum continued with Peri-Peri delivering 30% higher volumes than Korean Season 2, which itself grew 30% over Korean Season 1.
• Indonesia's newly launched 'Super Hemat' value platform added 35 to 40 additional daily customer transactions per restaurant since late September rollout.
• Indonesia self-ordering kiosk (SOK) installation program and software migration to mirror India's digital architecture scheduled for completion by March 2027.
• Popeyes Indonesia remains a drag (ADS at ₹64,000 across 25 stores); management is actively negotiating with the brand owner for a strategic resolution.

Analyst Q&A

• Q. Path to 15% restaurant EBITDA margin and double-digit company EBITDA in India over the next 4–6 quarters.

  Management stated that while new store openings initially dilute ADS, operational leverage from volume-driving initiatives like the Families program and supply chain efficiencies will push restaurant EBITDA beyond 13% towards 15%.

• Q. Impact of Navratri shift from Q2 to Q3 on reported 14% SSSG.

  Management clarified that Burger King has a balanced vegetarian and non-vegetarian menu, resulting in minimal festival drag, and asserted that SSSG would have been essentially the same even if Navratri had fallen in Q2.

• Q. Framework for deploying ~₹1,000 Cr cash and warrant capital between new brands and existing platforms.

  Management declined to commit to specific capital allocation targets yet, stating they are working closely with the new promoters who joined in July and will share a detailed strategic roadmap in due course.

• Q. Details and rationale on the ₹130 Cr primary capital infusion into Indonesia business.

  Management confirmed board approval for up to ₹130 Cr to be deployed strictly in milestone-based tranches for asset upgrading (HVAC, kitchen equipment, customer touchpoints) and working capital support, rather than store network expansion.

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