Restaurant Brands Asia Hits Upper Circuit As Burger King India Boosts Revenue, Margins In Q1 2026, Kotak Neo Research Upgrades Stock

Burger King operator Restaurant Brands Asia Ltd. shares hit the 20% upper circuit on Tuesday, August 4, after the Burger King India operator reported improved June quarter earnings, driven by strong growth in its India business and a sharp improvement in profitability.

The stock climbed to an intraday high of ₹84.91 on the NSE before easing slightly. At 12:45 pm, Restaurant Brands Asia shares were trading at ₹83.89, up ₹13.13 or 18.56% from the previous close of ₹70.76.

The company announced its Q1 FY27 earnings after market hours on Monday.

Restaurant Brands Asia Q1 2026 Results

Restaurant Brands Asia reported consolidated revenue of ₹823 crore for the April-June quarter, up 18% from ₹698 crore a year earlier.

The company narrowed its consolidated net loss by 32.4% year-on-year to ₹28.34 crore from ₹41.93 crore in the corresponding period last year. Operating EBITDA rose 37% to ₹100 crore, while EBITDA margin expanded by 175 basis points to 12.17%.

The improvement came despite total expenses rising 14.3% year-on-year to ₹875 crore, as higher sales and better operating efficiencies supported margins.

India remained the company's biggest market during the quarter. Revenue from the domestic business grew 23.6% year-on-year to ₹682.9 crore from ₹552.3 crore, accounting for around 83% of the company's consolidated revenue.

Restaurant Brands Asia operated 590 Burger King restaurants across India at the end of the June quarter, compared with 519 outlets a year ago. The company added nine stores during the quarter.

Burger King India Revenue, Margins Improve In Q1 2026

The company's India operations continued to deliver stronger profitability, helped by menu optimisation, a better product mix and supply chain efficiencies.

Management said same-store sales growth remained in double digits during the quarter, indicating healthy demand across existing stores. Newly introduced products, including Peri Burgers and Korean Burgers, also saw encouraging customer response.

Commenting on the performance, Rajeev Varman, Whole-time Director and Group CEO of Restaurant Brands Asia, said the company had carried forward the momentum built in the second half of the previous financial year and delivered another quarter of profitable growth in India.

The company added that demand trends have remained healthy at the start of the second quarter and reiterated plans to open around 80 new stores in India during FY27.

While the India business continued to perform well, the company's Indonesia operations remained under pressure.

Revenue from Indonesia declined around 4% year-on-year to ₹139.7 crore during the quarter from ₹145.4 crore a year earlier. The Indonesia operations, including Popeyes, contributed roughly 17% of the company's overall revenue.

Why Is Restaurant Brands Asia Share Price Rising Today?

The strong reaction in the stock was driven by improving profitability in the India business.

Apart from reporting lower losses and higher margins, Restaurant Brands Asia delivered healthy double-digit growth in India revenue and same-store sales. The improvement in operating performance, coupled with continued store expansion and management's positive demand outlook for the current quarter, boosted investor sentiment.

Adding to the positive sentiment, Kotak Neo Research upgraded the stock to 'ADD' from 'REDUCE', citing stronger-than-expected operating performance. The brokerage noted that Burger King India's revenue grew 24% year-on-year in the June quarter, ahead of its estimates, while same-store sales growth of 12.6% and a sharp improvement in EBITDA margins reflected better execution and cost efficiencies. It added that consistent outperformance in same-store sales and improving profitability warrant a re-rating of the stock.

The company has also guided for around 80 new store additions in India during FY27, signalling that it expects the recovery in the quick-service restaurant segment to continue.

Restaurant Brands Asia Share Price

The stock has gained nearly 33% so far in 2026 and more than 27% over the past five trading sessions. Tuesday's rally reflects investor optimism over improving profitability, sustained double-digit growth in the India business and management's expansion plans, with the company targeting around 80 new Burger King stores in India during FY27.

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