Restaurant Brands Asia Ltd
🍔 Restaurant Brands Asia FY26: India Growth & Margin Gains, Indonesia Revenue Dips
- Restaurant Brands Asia Limited (RBA) held its 13th Annual General Meeting and published its Annual Report for FY 2025-26.
- The company is the exclusive master franchisee of Burger King in India and, through subsidiaries, of Burger King and Popeyes in Indonesia.
- In India, the restaurant count reached 581, adding 68 restaurants in FY 2025-26. Same-store sales growth (SSSG) was 4.0% for the year, with Q4 FY 2026 SSSG at 6.3%.
- Standalone revenue from operations in India grew 15.4% year-on-year to ₹ 22,717 million. Pre-Ind AS 116 Company EBITDA (Standalone) was ₹ 1,324 million.
- Gross margin in India improved to 69.0% for the year, crossing 70% in Q4 FY 2026. Restaurant EBITDA grew 27.4% to ₹ 2,636 million.
- 91% of orders in India were placed through digital channels. Monthly active App users grew 51% over the previous year.
- In Indonesia, Burger King had 137 restaurants and Popeyes had 25. Burger King's Store EBITDA improved by IDR 19.6 billion.
- Consolidated revenue from operations increased 10.7% year-on-year to ₹ 28,226 million. Reported Company EBITDA increased 24.6% to ₹ 3,411 million.
- Post FY 2026, Lenexis Foodworks Private Limited (Inspira Global's food and beverage arm) acquired control of RBA, with a fresh primary capital infusion of ~ ₹ 1,500 crore.
- The Burger King Master Franchise Agreements for India and Indonesia have been extended up to 2050.
- RBA India was certified as a Great Place To Work®. The company had 12,372 employees as of March 31, 2026, with 36.4% women employees and 83 differently-abled employees.
- Restaurant Brands Asia Limited (RBAL) is the national master franchisee of Burger King® in India and operates Burger King® and Popeyes® in Indonesia.
- Lenexis Foodworks Private Limited (Inspira Global's F&B arm) will acquire a controlling stake in RBAL, marking the exit of existing promoter QSR Asia Pte. Ltd., subject to regulatory approvals.
- India Business: Revenue from operations increased 15.45% to ` 22,717.23 million in FY 2026. Highest-ever EBITDA (Pre-Ind-AS 116) of ` 1,324.22 million, a 33.24% YoY increase.
- India Business: Added 68 net restaurants, bringing total outlets to 581 as of March 31, 2026. Same-store sales growth of 4.0%.
- Indonesia Business: Total revenue was ` 5,509 million in FY 2026 (down from ` 5,830 million previous year). Burger King Indonesia Average Daily Sales (ADS) grew 2.8% YoY to IDR 18.6 million.
- Popeyes Indonesia reported total revenue of IDR 117 billion in FY 2026 (down from IDR 139 billion previous year) with an ADS of IDR 12.8 million.
- Consolidated financials: Loss for the year (consolidated) was ` (2,041.28) million in FY 2026, compared to ` (2,327.94) million in FY 2025.
- Key financial ratios: Operating profit margin was 14.95% (FY 2026) vs 14.45% (FY 2025). Net profit margin was (7.01%) due to an exceptional item.
- Digital focus: 97% of India restaurants equipped with self-ordering kiosks (SOKs). Around 91% of all sales occur through digital channels.
- Global and Industry Context: Global food service market valued at ~USD 3.19 trillion in 2025, projected to reach USD 4.27 trillion by 2034 (CAGR ~3.3%).
- Indian food service market valued at ` 5,717 billion in FY 2025, expected to reach ` 9,688 billion by FY 2030 (CAGR 11.1%). Organised QSR market in India expected to grow from ` 787 billion (FY 2025) to ` 1,864 billion by FY 2030 (CAGR 18.8%).
- Indonesian food service market was worth ~USD 29.8 billion in 2024, expected to reach ~USD 33.0 billion by 2029 (CAGR ~2.1%). QSR market in Indonesia valued at ~USD 4.1 billion in 2024, expected to reach ~USD 5.3 billion by 2029 (CAGR 5.5%).
- Board changes announced: Mr. Aayush Madhusudan Agrawal appointed as Non-Executive Director w.e.f. July 7, 2026. Mr. Madhusudan Bhagwandas Agrawal to become Chairman and Non-Executive Director w.e.f. same date.
- Financial Performance: For FY 2025-26, the Company reported a consolidated loss of ` 2,041.28 million, compared to a loss of ` 2,327.94 million in FY 2024-25. Consolidated revenue from operations was ` 28,226.40 million, an increase of 11.21%.
- Impairment Provision: The Company recorded an impairment provision of ` 1,200.00 million for its investment in PT Sari Burger Indonesia (BK Indonesia).
- Workforce: The Company had a workforce of around 10,620 employees in India and a total of 12,357 employees as of March 31, 2026.
- Restaurant Network: As of March 31, 2026, the Company had 581 Burger King restaurants in India. Its Indonesian subsidiaries operated 137 Burger King and 25 Popeyes restaurants.
- Proposed Acquisition & Capital Infusion: The proposed acquisition of RBAL by Inspira Global, along with a capital infusion of approximately INR 1,500 Crores through a preferential issue, is expected to strengthen the balance sheet and support long-term growth.
- Open Offer: Acquirers (Lenexis Foodworks, Aayush Agrawal Trust, Inspira Foodworks, Mr. Aayush Agrawal) have made an open offer to acquire up to 26% of the expanded voting share capital at INR 70 per share.
- Share Capital: Authorized Share Capital was increased to ` 9,00,00,00,000 (Nine Hundred Crore). Issued, Subscribed and Paid-up Share Capital stood at ` 5,82,87,62,870.
- No Dividend: Since the Company did not make a profit, the Directors did not recommend any dividend for FY 2025-26.
- Key Risks & Mitigations: The announcement details mitigation strategies for risks including Cybersecurity, Talent Management, ESG, Social Media, and Business Continuity.
- Internal Controls: The Company maintains a robust internal control framework, monitored by an internal team and external auditors. The Audit Committee regularly reviews reports.
- Statutory Auditors: M/s. B S R & CO LLP continue as Statutory Auditors.
- Secretarial Audit: M/s. Mehta and Mehta provided a Secretarial Audit Report (Form MR-3) with no qualifications or adverse remarks.
- POSH Complaints: During the year, 11 complaints under the Prevention of Sexual Harassment (POSH) Act were received and resolved.
- Remuneration disclosure shows Whole-time Director & Group CEO Rajeev Varman's remuneration ratio to median employee pay is 351.52. Independent Directors' ratio is 4.40.
- Median remuneration of employees increased by 3.92% in FY 2025-26. Average salary increase for non-managerial employees was 10.56%, while managerial remuneration increase was Nil.
- Total permanent employees on rolls as of March 31, 2026 were 10,620.
- Key Managerial Personnel Sumit Zaveri saw a 5% remuneration increase, and Shweta Mayekar saw a 7.6% increase.
- The company allotted 8,08,322 shares under ESOP schemes during the year and granted 11,26,046 options under the BK Employee Stock Option Scheme 2024.
- Authorized Share Capital was increased twice: first to INR 700,00,00,000 (700 Crore) and later to INR 9,00,00,00,000 (900 Crore).
- Paid-up Capital as of March 31, 2026 was ` 5,82,87,62,870.
- The company operates 581 restaurants (including 5 sub-franchisee) and 6 offices nationally across 29 states/UTs, with a subsidiary in Indonesia.
- Total workforce is 12,372, with 10,620 permanent employees (62.71% male, 37.29% female) and 83 differently-abled employees.
- Customer complaints received were 2,64,666 in FY 2025-26, primarily related to ordering inaccuracies and food product experience, all resolved.
- Material risks identified include Food Safety, Cyber Security, Climate Change, Supply Chain, Regulatory Compliance, Social Media, and Utility Supply (LPG/PNG).
- The company affirms compliance with the Nomination and Remuneration Policy and all applicable laws per the Secretarial Audit Report.
- The Company has translated its policies into procedures (Yes).
- The Company strives to influence its value chain partners to participate in responsible and sustainable business conduct, engaging with them through meets, trainings, and website communications.
- Most of the Company's vendors are certified with ISO 22000 or similar standards.
- Specific commitments and targets include: implementing solar and new cooking platforms to reduce energy consumption; increasing employee training coverage; reducing plastic footprint; promoting inclusive employment through the 'Taare Humare' initiative for persons with disabilities; enhancing energy sustainability via renewable energy adoption; and strengthening governance through training on POSH, Code of Conduct, Whistle-blower, and Prohibition of Insider Trading.
- Performance highlights: partnered with local solar partners for store power; monitored electricity consumption; all restaurant employees have access to online learning management systems; dine-in glasses are reused for about 9 months; plastic waste is recycled via EPR or safely disposed; introduced annual mandatory training for all employees on POSH, Code of Conduct, Whistle-blower & Prohibition of Insider Trading; and uses a Compliance Management Tool.
- The director's statement highlights sustainability efforts: introduced reusable glasses, wooden cutlery, bagasse lids; waste cooking oil used for biodiesel; responsible sourcing; low-carbon restaurant design; plans for solar energy; and adoption of energy-efficient equipment.
- The Company's 'Taare Humare' initiative promotes inclusive employment for differently-abled individuals.
- The Company facilitated collection of ` 23.34 lakhs from customers, donated to Army Central Welfare Fund.
- Workforce comprises approximately 37% women employees in India.
- Highest authority for Business Responsibility policy oversight is Mr. Rajeev Varman (DIN: 03576356), Whole-time Director and Group CEO.
- The Whole-time Director and Group CEO is responsible for decisions on sustainability issues (no separate board committee).
- Performance against policies and compliance is reviewed annually by the Director.
- No independent external assessment of policies was carried out.
- No fines/penalties/settlement amounts were paid in proceedings with regulators/law enforcement/judicial institutions.
- The Company has an anti-corruption policy and provides annual training; no disciplinary actions for bribery/corruption against Directors/KMPs/employees/workers.
- No complaints received regarding conflict of interest for Directors or KMPs.
- Number of days of accounts payable: 38.43 days in FY 2025-26 (43.52 days in FY 2024-25).
- Concentration of purchases/sales with trading houses/dealers: Nil.
- Share of Related Party Transactions (RPTs): Loans & advances to related parties at 99.89% of total; Investments in related parties at 89.20% of total.
- Capex investment in technologies to improve environmental/social impacts was 10.88% in FY 2025-26, up from 0.86% in the previous year.
- Sustainable sourcing accounted for ~18.16% of total sourcing. Initiatives include using only RSPO-certified palm oil and compostable/biodegradable packaging.
- Extended Producer Responsibility (EPR) program is applicable; the company successfully completed its EPR target for FY 2025-2026.
- Plastic waste recycled: 249 metric tonnes (FY 2025-26). E-waste safely disposed: 0.15 metric tonnes (FY 2025-26).
- Total permanent employees: 10,620. 100% of permanent employees have health and accident insurance.
- Cost incurred on employee well-being measures was 0.23% of total revenue in FY 2025-26.
- Lost Time Injury Frequency Rate (LTIFR) for employees was 87.23 per one million-person hours worked in FY 2025-26.
- Total complaints reported under the POSH Act were 11 in FY 2025-26, with 7 complaints upheld.
- Total energy consumption from non-renewable sources was 6,13,335.14 GJ in FY 2025-26.
- Total water withdrawal was 7,94,065.73 kilolitres in FY 2025-26, all from third-party sources.
- Total Scope 1 greenhouse gas emissions: 10,845.67 metric tonnes of CO2 equivalent. Total Scope 2 emissions: 76,241.60 metric tonnes of CO2 equivalent (FY 2025-26).
- The company invested ` 33 crore towards energy efficiency initiatives to reduce greenhouse gas emissions.
- Total waste generated was 925.884 metric tonnes in FY 2025-26, including 676.734 metric tonnes of food waste.
- Waste management includes plastic recycling via EPR, waste oil conversion to bio-diesel, and a structured 4-step IT e-waste process (Recycling, Remarketing, Secure Destruction, Asset Disposal).
- Company is compliant with all applicable environmental laws in India (Water Act, Air Act, Environment Protection Act).
- Company is not measuring water withdrawal/consumption/discharge in water-stress areas or Scope 3 emissions.
- Six environmental initiatives listed: Solar Installation, Mini Broiler, Effluent Treatment Plants (ETPs), transition to inverter ACs, alternative fuels (PNG/electric) instead of LPG, and evaporative cooling.
- Affiliated with 2 trade associations: Retail Association of India (National) and National Restaurant Association of India (NRAI) (National).
- No corrective actions needed on anti-competitive conduct; no orders received from regulatory authorities.
- 2% of input materials (by value) sourced directly from MSMEs/small producers; 100% sourced from within India.
- Wage cost distribution by location (FY 2025-26): Rural 11.92%, Semi-Urban 3.73%, Urban 23.58%, Metropolitan 60.76%.
- Consumer complaints: FY 2025-26 received 2,64,666 complaints (mostly ordering inaccuracies/food experience); FY 2024-25 received 1,16,249.
- No data breaches reported; instances of data breaches: Nil.
- Board comprises 9 Directors: 4 Independent (including 1 Woman Independent), 4 Non-Executive, 1 Executive.
- Board met 8 times in FY 2025-26; all Directors attended all meetings except some with leaves of absence.
- Key Board Committees: Audit Committee (3 members), Nomination and Remuneration Committee (3 members), Stakeholders' Relationship Committee (4 members), Risk Management Committee (5 members), Borrowing, Investments, Loans and Finance Committee.
- 1 investor complaint received and resolved in FY 2025-26; none pending at year-end.
- No meetings were held for the BILF Committee and the Fund Raising Committee during FY 2025-26.
- The Committee of Independent Directors (IDC) was constituted on January 16, 2026, and held 2 meetings in January and February 2026.
- Executive Director Mr. Rajeev Varman's total remuneration for FY 2025-26 was ` 7,64,30,368, comprising a gross salary of ` 3,64,30,368 and variable pay of ` 4,00,00,000.
- Non-Executive Independent Directors (Mrs. Tara Subramaniam, Mr. Sandeep Chaudhary, Mr. Yash Gupta, Mr. Andrew Day) each received remuneration of ` 10,00,000 and sitting fees ranging from ` 6,30,000 to ` 9,60,000 for FY 2025-26.
- The company's promoter and promoter group (foreign) hold 11.26% (6,56,23,091 shares), while public shareholding is 88.74% (51,72,53,196 shares) as of March 31, 2026.
- 100% of the company's paid-up capital (58,28,76,287 equity shares) is held in dematerialized form.
- The company has entered into agreements for a preferential issue of equity shares and warrants to raise approximately ` 1,500 Crores and an open offer for up to 26% of the expanded voting share capital at ` 70 per share.
- Credit ratings from ICRA as of March 31, 2026, include Long Term - Term Loans rated [ICRA]A- (Stable) for ` 200.00 Crores and Short-term - non-fund based limits rated [ICRA]A2+.
- Total fees paid to Statutory Auditors and their network firms for FY 2025-26 was ` 26.22 Million.
- 11 complaints of sexual harassment were received and resolved during FY 2025-26, with none pending at year-end.
- Auditor's Report: B S R & Co. LLP issued an unqualified audit opinion on the standalone financial statements of Restaurant Brands Asia Limited for the year ended 31 March 2026.
- Financial Performance: The company reported a loss for the year of ` 1,591.40 million, compared to a loss of ` 875.78 million in the previous year. This includes an exceptional item expense of ` 1,222.52 million.
- Revenue: Revenue from operations increased to ` 22,717.23 million from ` 19,677.59 million in the prior year.
- Total Assets: Total assets stood at ` 42,739.55 million as of 31 March 2026, slightly down from ` 42,858.39 million the previous year.
- Equity: Total equity decreased to ` 21,093.31 million from ` 22,604.08 million, primarily due to the year's loss.
- Key Asset Changes: Property, Plant and Equipment increased to ` 9,974.45 million. Right-of-use assets increased to ` 13,642.59 million. Cash and cash equivalents decreased significantly to ` 248.02 million from ` 5,210.28 million.
- Loans and Guarantees: The company provided loans of ` 1,332.10 million and guarantees of ` 111.34 million to subsidiaries during the year.
- Legal Compliance: The auditor reported no material misstatements. The company has no pending litigations impacting its financial position and did not declare or pay any dividend during the year.
- Internal Financial Controls: The auditor's opinion states the company has adequate internal financial controls which were operating effectively as of 31 March 2026.
- Statutory Dues: The company has generally been regular in depositing statutory dues. Disputed statutory dues total ` 99.54 million across various GST and VAT cases.
- Audit Trail Issue: A qualification was noted regarding the audit trail (edit log) feature not being enabled at the database level for the accounting software, and the auditor was unable to comment on its operation for a third-party point of sale software.
- Related Party Transactions: Transactions with related parties are reported to be in compliance with the Companies Act, 2013.
- Borrowings: The company has not defaulted in repayment of loans or interest. It has working capital limits in excess of ` 5 crore secured by current assets.
- Physical Verification: The company has a regular program for physical verification of Property, Plant and Equipment over three years. No material discrepancies were found in inventory.
- Net cash used in financing activities was ` 2,478.86 million for FY 2026, compared to cash generated of ` 4,431.46 million in FY 2025.
- The company had a net decrease in cash and cash equivalents of ` 4,962.26 million for FY 2026, ending the year with ` 248.02 million in cash.
- Major outflows in financing activities included payment of lease liabilities of ` 2,179.73 million and interest paid on borrowings of ` 79.97 million.
- Proceeds from exercise of employee stock options were ` 17.25 million in FY 2026, down from ` 106.82 million in the prior year.
- The company reported net repayments of long-term borrowings of ` 78.21 million and short-term borrowings of ` 158.20 million.
- No proceeds from the issue of equity shares were recorded in FY 2026, compared to ` 5,000.00 million in FY 2025.
- Cash and cash equivalents at the end of the year comprised ` 200.47 million in bank current accounts and ` 47.55 million in cash on hand.
- The standalone financial statements for the year ended March 31, 2026, were approved by the Board of Directors on May 14, 2026.
- The financial statements are presented in Indian Rupees (`) and values are stated in millions, as per Indian Accounting Standards (Ind AS).
- The company's primary business is Quick Service Restaurants under the 'Burger King' brand, listed on BSE and NSE.
- The standalone financial statements are for the year ended March 31, 2026.
- Property, Plant and Equipment (PPE) net book value increased to ` 9,974.45 million in FY26 from ` 8,392.53 million in FY25.
- Right-of-use assets (leasehold premises & equipment) net book value increased to ` 13,642.59 million in FY26 from ` 12,512.25 million in FY25.
- Intangible assets net book value decreased to ` 829.59 million in FY26 from ` 1,109.02 million in FY25, partly due to a franchise fee waiver of ` 476.12 million.
- Non-current investment in subsidiary PT Sari Burger Indonesia is ` 11,388.44 million, including a provision for impairment of ` 1,200.00 million.
- Current investments in mutual funds (measured at FVTPL) increased significantly to ` 1,378.63 million in FY26 from ` 235.46 million in FY25.
- Total borrowings decreased to ` 1,032.17 million in FY26 from ` 1,268.58 million in FY25.
- Lease liabilities stand at ` 15,946.30 million (Current: ` 664.28 million, Non-current: ` 15,282.02 million).
- The Company reported a loss for the year of ` 1,591.40 million, increasing retained earnings deficit to ` (9,955.51) million.
- Issued, subscribed, and fully paid equity share capital is ` 5,828.76 million (58.28 crore shares).
- Cash and cash equivalents decreased sharply to ` 248.02 million in FY26 from ` 5,210.28 million in FY25.
- Trade receivables (considered good) increased to ` 379.64 million in FY26 from ` 257.34 million in FY25.
- Inventories stood at ` 236.95 million in FY26.
- The Company has a site restoration provision of ` 335.07 million.
- Critical accounting estimates and judgements include useful lives of PPE, defined benefit plans (gratuity), impairment of investment in subsidiaries, and fair value measurements.
- Total revenue from operations increased to ₹22,717.23 million in FY2026 from ₹19,677.59 million in FY2025.
- Revenue from sale of food and beverages was ₹22,479.73 million in FY2026, up from ₹19,478.87 million in FY2025.
- The company reported a loss before tax of ₹(1,591.40) million for FY2026, compared to a loss of ₹(875.78) million in FY2025.
- Basic and diluted EPS was ₹(2.73) for FY2026, compared to ₹(1.75) for FY2025.
- Employee benefits expense increased to ₹3,560.44 million in FY2026 from ₹2,988.99 million in FY2025.
- Finance costs rose to ₹1,687.99 million in FY2026 from ₹1,411.42 million in FY2025, with interest on lease liability being ₹1,584.44 million.
- Depreciation and amortisation expense increased to ₹2,804.97 million in FY2026 from ₹2,546.28 million in FY2025.
- Other expenses increased to ₹8,726.32 million in FY2026 from ₹7,490.48 million in FY2025, with significant items including commission & delivery expenses (₹2,169.66 million) and royalties fees (₹1,214.67 million).
- The company has unused carried forward business losses of ₹943.44 million and unabsorbed depreciation of ₹2,470.49 million as of March 31, 2026.
- Related party transactions include a loan to subsidiary PT Sari Burger Indonesia of ₹1,332.10 million in FY2026 and outstanding loan balance of ₹2,159.22 million as of March 31, 2026.
- Share-based payment expense was ₹84.08 million for FY2026.
- Employee Stock Option Scheme (ESOS) details for multiple tranches (X to XV) and an additional grant under RBAL ESOS 2024 (Tranche I) are disclosed.
- Total options granted during the year ended March 31, 2026 were 16,71,851. Total options outstanding at year-end were 40,83,227, with 32,36,920 options unvested and 8,46,307 options vested but not exercised.
- Options exercised during the year: 8,08,322, generating cash proceeds of ` 17.25 million.
- Key financial figures: Weighted average share price during the year was ` 72.73. Weighted average remaining contractual life of outstanding options is 1.25 years.
- Capital commitments: Estimated contracts remaining for capital expenditure (net of advances) stand at ` 217.8 million as of March 31, 2026.
- Contingent liabilities include corporate guarantees issued for subsidiary PT Sari Burger Indonesia totaling IDR 4,10,000 million and USD 0.28 million, and a performance guarantee for obligations under franchise agreements.
- The company has a secured term loan facility of ` 1,500 million, with a portion utilized to issue a Standby Letter of Credit (SBLC) for a subsidiary loan. Outstanding subsidiary loan balance is ` 1,508.26 million.
- Financial Risk Management: Credit risk exposure includes Investments in Mutual Funds (AAA rated) of ` 1,378.63 million and Loans of ` 2,160.11 million. Liquidity and foreign currency risks are managed.
- Ratio Analysis shows a current ratio of 1.18x, Debt-Equity ratio of 0.05x, and a Net Profit ratio of (7.01%). Key ratios like Return on Equity and Return on Capital Employed worsened due to exceptional items.
- Capital Management: Net proceeds from a Qualified Institutional Placement (QIP) were ` 4,800.85 million. ` 3,410.78 million has been utilized for debt repayment, capital expenditure, and general corporate purposes, with ` 1,390.07 million unutilized.
- Exceptional Items for the year include a ` 22.52 million charge due to the implementation of new Labour Codes and a ` 1,200.00 million impairment provision on investment in subsidiary PT Sari Burger Indonesia.
- Corporate Action: The Board approved a preferential issue of 12,85,71,128 equity shares at ` 70 per share and 8,57,14,285 warrants at ` 70 per warrant to Lenexis Foodworks Private Limited and others, approved by shareholders on February 13, 2026.
- Auditor B S R & Co. LLP issued an unqualified opinion on the consolidated financial statements for the year ended March 31, 2026.
- The Group reported a Loss before tax of ` 2,041.28 million for FY26, compared to a Loss before tax of ` 2,327.94 million in FY25.
- Total comprehensive loss for the year was ` 2,146.91 million (FY25: ` 2,350.38 million).
- Revenue from operations increased to ` 28,226.40 million in FY26 from ` 25,507.20 million in FY25.
- Total assets stood at ` 33,823.12 million as of March 31, 2026 (March 31, 2025: ` 34,626.71 million).
- Total equity decreased to ` 6,885.89 million as of March 31, 2026 (March 31, 2025: ` 8,941.71 million).
- Cash and cash equivalents declined sharply to ` 306.16 million as of March 31, 2026 (March 31, 2025: ` 5,342.52 million).
- The financial statements of one subsidiary, with total assets of ` 4,694.62 million and total revenues of ` 5,570.84 million, were audited by another auditor.
- The auditor reported no pending litigations impacting the Group's financial position as of March 31, 2026.
- The Holding Company did not declare or pay any dividend during the year.
- The auditor's report includes a Key Audit Matter section but states there were no key audit matters to communicate.
- The auditor's report on internal financial controls states they were adequate and operating effectively as of March 31, 2026.
- The Holding Company is a public limited company incorporated in 2013, operating Quick Service Restaurants under the brand names 'Burger King' and 'Popeyes'.
- The Company has primary listings on the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) in India.
- The Group consolidates two subsidiary enterprises in Indonesia: PT Sari Burger Indonesia ('BK Indonesia') and PT Sari Chicken Indonesia ('Popeye's Indonesia'), both with an ownership interest of 88.80%.
- The consolidated financial statements for the year ended March 31, 2026 were authorized for issue by the Board of Directors on May 14, 2026.
- The financial statements are prepared in accordance with Indian Accounting Standards (IND AS) and are presented in Indian Rupees (rounded to the nearest million).
- Revenue is recognized from the sale of food and beverages through owned stores and third-party online platforms when items are delivered to customers.
- The Group capitalizes one-time initial franchisee fees paid for opening each store, amortized over 20 years.
- Property, Plant and Equipment (PPE) includes leasehold improvements amortized over the lower of 15 years or the lease period, and restaurant equipment depreciated over 8-10 years.
- The Group operates a defined benefit gratuity plan in India and provides a minimum pension benefit as per Indonesian labour laws.
- Financial assets are classified and measured based on contractual cash flow characteristics and the Group's business model, including categories such as amortized cost, fair value through OCI (FVTOCI), and fair value through profit or loss (FVTPL).
- Equity investments are measured at fair value. Instruments held for trading are classified as Fair Value Through Profit or Loss (FVTPL). For other equity instruments, the Group can make an irrevocable election to present subsequent fair value changes in Other Comprehensive Income (OCI).
- Financial assets are derecognised when the rights to receive cash flows have expired or when the Group has transferred substantially all risks and rewards of the asset.
- Impairment of financial assets is assessed based on an Expected Credit Loss (ECL) model. For trade receivables, the Group uses a simplified approach, recognising lifetime ECLs from initial recognition.
- Financial liabilities are initially recognised at fair value and subsequently measured at amortised cost using the Effective Interest Rate (EIR) method, except for those held for trading or designated at fair value through profit or loss.
- The Group uses derivative financial instruments (like foreign exchange forward contracts) to manage foreign exchange exposures. Gains/losses from changes in fair value are taken to profit or loss unless designated in a qualifying hedge relationship.
- For cash flow hedges, the effective portion of changes in the fair value of the hedging instrument is recognised in OCI. The ineffective portion is recognised immediately in profit or loss.
- Property, Plant and Equipment (PPE) net book value as of March 31, 2026 is ` 12,017.35 million, up from ` 10,781.15 million in the previous year.
- Capital Work-in-Progress (CWIP) as of March 31, 2026 is ` 414.82 million, with ` 308.72 million aged less than 1 year.
- Right-of-Use Assets net book value as of March 31, 2026 is ` 15,032.24 million, up from ` 14,004.13 million in the previous year.
- Intangible Assets net book value as of March 31, 2026 is ` 959.72 million, down from ` 1,248.09 million in the previous year, partly due to a waiver of franchisee fee amounting to ` 476.12 million.
- Current Investments (unquoted mutual funds) measured at fair value through profit & loss total ` 1,378.63 million as of March 31, 2026, a significant increase from ` 235.46 million the previous year.
- Trade Receivables considered good and unsecured total ` 461.78 million as of March 31, 2026, up from ` 336.47 million.
- Cash and Cash Equivalents total ` 306.16 million as of March 31, 2026, a sharp decrease from ` 5,342.52 million the previous year.
- Issued, Subscribed, and Fully Paid Equity Share Capital is ` 5,828.76 million (582.876 million shares) as of March 31, 2026.
- Major shareholders (holding >5%) as of March 31, 2026 include QSR Asia Pte Ltd (11.26%), HDFC Trustee Company Limited - HDFC Flexi Cap fund (9.57%), and ICICI Prudential Life Insurance Company Limited (7.04%).
- Securities Premium Reserve stands at ` 25,311.93 million as of March 31, 2026.
- Total revenue from operations increased to ₹28,226.40 million in FY26 from ₹25,507.20 million in FY25.
- The Group reported a total loss of ₹1,870.78 million for the year ended March 31, 2026, compared to a loss of ₹2,162.02 million in the previous year.
- Retained earnings (accumulated losses) stood at (₹18,250.03) million as of March 31, 2026, worsening from (₹16,379.25) million the previous year.
- Basic and Diluted Earnings Per Share (EPS) was (₹3.19) for FY26, an improvement from (₹4.33) in FY25.
- Total borrowings decreased to ₹2,698.54 million as of March 31, 2026, from ₹2,955.65 million the previous year. This includes term loans from banks (e.g., Bank 1, Bank 4) and overdraft facilities.
- Lease liabilities increased to ₹16,971.47 million as of March 31, 2026, from ₹15,362.91 million. Significant non-cash additions to lease liabilities were ₹3,078.98 million.
- Employee benefits expense rose to ₹4,866.58 million in FY26 from ₹4,311.48 million in FY25, including salaries, provident fund contributions, and gratuity/pension costs.
- Finance costs increased to ₹1,893.78 million in FY26, primarily driven by interest on lease liabilities of ₹1,668.11 million.
- The Group has significant unrecognised deferred tax assets of ₹859.33 million on carried forward business losses (₹943.44 million) and unabsorbed depreciation (₹2,470.49 million) of the Holding Company, and ₹1,268.35 million on carried forward losses of BK Indonesia (₹5,765.24 million), due to lack of certainty regarding future taxable profits.
- Trade payables amounted to ₹3,401.93 million as of March 31, 2026, with ₹30.74 million due to Micro and Small Enterprises (MSMEs). Interest due and payable to MSMEs for delayed payments was ₹0.81 million.
- The present value of the defined benefit obligation for gratuity (Company) increased to ₹171.28 million, and for pension (BK Indonesia) increased to ₹136.70 million as of March 31, 2026.
- Remuneration to Key Management Personnel, including Mr. Rajeev Varman (₹76.43 million) and Mr. Sumit Zaveri (₹29.23 million), was disclosed as related party transactions.
- Directors' sitting fees for FY 2026: Mrs. Tara Subramaniam `0.96 million, Mr. Yash Gupta `0.63 million, Mr Sandeep Chaudhary `0.64 million, Mr. Andrew Day `0.64 million, Mr. Ajay Kaul `0.20 million.
- Directors' Remuneration (excluding GST) for FY 2026: Mrs. Tara Subramaniam `1.00 million, Mr Sandeep Chaudhary `1.00 million, Mr Yash Gupta `1.00 million, Mr. Andrew John Day `1.00 million, Mr. Ajay Kaul `1.00 million.
- Total share-based payment expense for FY 2026: `121.60 million (FY 2025: `91.76 million). This includes equity-settled expense of `84.08 million and cash-settled expense of `37.53 million.
- ESOS 2015 outstanding options as of March 31, 2026: 40,83,227 options. During the year, 16,71,851 options were granted, 8,08,322 were exercised, 3,05,796 lapsed, and 5,08,647 were surrendered.
- Capital commitments (net of advances) as of March 31, 2026: `217.8 million (March 31, 2025: `90.58 million).
- Total Financial Assets as of March 31, 2026: `3,418.69 million, categorized as Amortised cost `2,010.83 million, FVOCI `29.23 million, and FVTPL `1,378.63 million.
- Total Financial Liabilities as of March 31, 2026: `24,309.18 million, all at Amortised cost.
- Fair Value Hierarchy (Level 1) Investments as of March 31, 2026: `1,378.63 million (March 31, 2025: `235.46 million).
- Credit risk exposure: Top three delivery aggregators constituted 66.60% of total trade receivables (`461.78 million) as of March 31, 2026.
- Liquidity risk: Trade payables of `3,401.93 million are due within 1 year. Other financial liabilities of `1,237.24 million are also due within 1 year.
- Market risk management focuses on currency and interest rate risks. Currency risk exposure includes USD borrowings of 1,508.99 as of March 31, 2026.
- A 50 bps change in USD/INR rate would impact loss before tax by +/- 7.64 for FY2026 and +/- 1.66 for FY2025.
- Interest rate risk exposure: Borrowings (current & non-current) were 2,698.54 million as of March 31, 2026.
- A 10 bps change in interest rates would impact loss before tax by +/- 2.28 million (net) for FY2026.
- Hedging: As of March 31, 2026, forward contracts covered net exposure of (1,565.17) for 1-6 months, and interest rate swaps covered 1,525.04 for >1 year at avg fixed rate 0.35.
- Capital Management: In FY2025, the company issued 8,33,33,333 equity shares via QIP at ₹60/share, raising aggregate ₹5,000.00 million. Net proceeds were 4,800.85 million.
- QIP proceeds utilization as of March 31, 2026: 3,410.78 million utilized; 1,390.07 million unutilised (deposited). Key uses: debt repayment (720.00 million), capex for new restaurants (1,897.03 million), general corporate purposes (793.75 million).
- Operating Segments: Total segment revenue was 28,226.40 for FY2026 (India: 22,717.23; Indonesia: 5,509.17). Segment results were 3,282.60 (India profit: 3,396.32; Indonesia loss: (113.72)).
- Consolidated loss before tax was (2,041.28) for FY2026. Finance cost was (1,893.78), depreciation & amortisation (3,893.76).
- New Labour Codes 2025 led to an exceptional item charge of 22.52 million for incremental gratuity/leave obligations.
- Board approved preferential issue of 12,85,71,128 equity shares at ₹70/share to Lenexis Foodworks and others, plus 8,57,14,285 warrants at ₹70/warrant to Lenexis, subject to approvals.
- 13th AGM to be held on August 20, 2026, via VC/OAVM. Key agenda items: adoption of financial statements, re-appointment of director Mr. Rafael Odorizzi De Oliveira, and appointment of Mr. Madhusudan Bhagwandas Agrawal and Mr. Aayush Madhusudan Agrawal as Non-Executive Non-Independent Directors.
- Remote e-Voting period: from August 16, 2026 (9:00 AM IST) to August 19, 2026 (5:00 PM IST). Cut-off date for voting eligibility is August 13, 2026.