Restaurant Brands Asia (RBA) shares surged 20% to Rs 84.91 on Tuesday, August 4, 2026, following the company's robust Q1 FY27 results. The stock has responded positively to strong operational performance, with shares jumping 19.29% to Rs 84.41 on the same day as reported by Motilal Oswal. According to the latest market data, RBA's share price has moved up by 27.36% over the past week, reflecting strong investor confidence in the company's growth trajectory. The stock has demonstrated consistent momentum, with Rs 84.91 representing the highest trading level in recent sessions.
RBA delivered exceptional financial results with India revenue growing 24% year-on-year to Rs 6,800 crore, significantly surpassing the estimated 19% growth. The biggest positive was same-store sales growth (SSSG) at 12.6%, which Motilal Oswal describes as the company's highest SSSG in the past 15 quarters, against the estimated 8% growth. India gross margin expanded 310 basis points year-on-year to 70.8%, helped by product mix, menu optimization and supply-chain efficiencies. India ROM (pre-Ind AS) increased 68% YoY to Rs 90 crore, with the margin expanding to 13.2% from 9.7% a year ago. The company added nine stores during the quarter, taking its India store count to 590.
According to Motilal Oswal's report, RBA's positive momentum continued into July with industry-leading same-store sales growth of 13%, well supported by healthy traction across both dine-in and delivery channels. New launches such as Peri Burgers and Korean Burgers received positive market reception and helped drive incremental traffic to the restaurants. The healthy traction was aided by value offerings, supporting the company's diversified revenue streams. Management said the positive demand momentum continued into July and the company saw a healthy start to Q2 FY27. The broader quick-service restaurant industry has started recovering after several quarters of muted or declining same-store sales growth.
According to Motilal Oswal's report, RBA's positive momentum continued into July with strong consumer response to new product launches. New launches such as Peri Burgers and Korean Burgers received positive market reception and helped drive incremental traffic to the restaurants. The healthy traction across both dine-in and delivery channels was aided by value offerings, supporting the company's diversified revenue streams. Management also said the broader quick-service restaurant industry has started recovering after several quarters of muted or declining same-store sales growth.
Inspira Global has acquired a controlling stake in RBA through Lenexis Foodworks while retaining the existing operating leadership team. As reported by Motilal Oswal, the brokerage values India operations at 25x March 2028E EV/EBITDA (pre-IND AS) and Indonesia operations at Rs 5 billion (approximately 0.9x EV/sales March 2028E). The brokerage has raised its EBITDA estimates by 5% for FY27 and 8% for FY28, citing better-than-expected margin delivery. RBA plans to add 80 stores in India during FY27, compared with nine stores added in Q1. While India delivered strong growth, Indonesia continued to be a drag on consolidated performance with revenue declining 4% YoY to Rs 139.7 crore. However, Indonesia ROM (pre-Ind AS) rose to Rs 3.3 crore compared with Rs 20 lakh in Q1 FY26, and post-Ind AS EBITDA improved to Rs 2.7 crore against an EBITDA loss of Rs 2.5 crore in the previous quarter.
