Restaurant Brand Q1 FY27 Results (NSE: RBA)
Signal: Margin expansion
The read
The key inflection is margin: consolidated EBITDA margin expanded to 14.6%, up 460bps YoY and above the 10% level maintained through Q1FY26-Q2FY26, driven by 350bps gross-margin expansion; however, Indonesia's ₹41.57 crore subsidiary loss and ₹46.55 crore non-controlling-interest loss prevented a consolidated PAT breakeven.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹822.61 Cr | +17.9% | +16.4% |
| EBIT | ₹16.48 Cr | +1102% | |
| Net profit | ₹-28.35 Cr | +37.6% | |
| EPS | ₹0.45 | -37.5% | |
| EBIT margin | 14.6% |
P&L walk
Consolidated revenue increased to ₹822.61 crore, +17.9% YoY and +16.4% QoQ, with gross margin expanding 350bps YoY as raw-material intensity fell to 31.1%; EBITDA rose to ₹119.99 crore and margin reached 14.6%, but finance costs of ₹49.48 crore and a ₹46.55 crore non-controlling-interest loss kept parent PAT negative at ₹28.35 crore.
Segments
India drove the quarter with revenue of ₹682.90 crore, +21.4% YoY, while Indonesia revenue fell 3.9% YoY to ₹139.71 crore and its subsidiary reported a ₹41.57 crore net loss before consolidation adjustments, creating the material standalone-to-consolidated profit gap.
Key positives
- Consolidated revenue reached ₹822.61 crore, +17.9% YoY, accelerating from +11.9% in Q3FY26 and +11.7% in Q4FY26.
- EBITDA rose to ₹119.99 crore, +40.0% YoY versus revenue growth of +17.9%, while EBITDA margin expanded 460bps to 14.6%.
- Raw-material intensity declined 350bps YoY to 31.1% of revenue, supporting gross-margin expansion to 68.9%.
- India revenue grew 21.4% YoY to ₹682.90 crore and standalone EBITDA margin expanded to 17.2%, up 510bps YoY.
- The company approved up to IDR 100 billion of preference-share investment in PT Sari Burger Indonesia, potentially supporting the Indonesia business.
Key concerns
- Indonesia revenue declined 3.9% YoY to ₹139.71 crore, while the subsidiary reported a ₹41.57 crore net loss before consolidation adjustments.
- Consolidated non-controlling interests absorbed ₹46.55 crore of loss, leaving parent-attributable PAT at a ₹28.35 crore loss despite ₹119.99 crore of EBITDA.
- Finance costs remained high at ₹49.48 crore, equivalent to approximately 41% of consolidated EBITDA.
- Employee plus other operating expenses grew 21.0% YoY, faster than consolidated revenue growth of 17.9%, so the margin improvement was not driven by broad operating-cost discipline.
- Reported consolidated EPS of ₹0.45 did not track the narrowing PAT loss from ₹41.94 crore to ₹28.35 crore, requiring attention to share-count and EPS presentation after recent capital issuances.
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