Q1 Loss Shrinks, Stock Jumps 16%: What’s Driving Restaurant Brands Asia’s Rally?
New Delhi, Aug 4: Restaurant Brands Asia (RBA), the company behind Burger King India, saw its shares surge 16% during intraday trade on Tuesday, August 4, after it reported a smaller net loss for the April-June quarter of FY27, helped by cost discipline, pricing tweaks, and healthy revenue gains.
The stock hit an intraday high of ₹82 on the NSE, up nearly 16% from its prior close of ₹70.76. The move takes the small-cap QSR name’s year-to-date gain to 28%, edging it closer to its 52-week peak of ₹87.65 (set last September) and well above its 52-week low of ₹57.15.
Inside the Q1 Numbers
The company’s consolidated net loss for the quarter ended June 2026 came in at ₹28.3 crore, a sharp improvement from ₹48 crore in the year-ago period. Revenue grew 18% year-on-year to ₹822.6 crore, powered chiefly by strength in the India business, while the Indonesia operations remained a drag on overall performance.
Same-store sales growth stayed strong at 13%, industry-leading and backed by solid momentum across dine-in and delivery, aided by value-focused offerings. RBA opened nine new outlets in the quarter and reaffirmed its target of 80 store additions for FY27. In Indonesia, the company’s turnaround efforts are underway, with an emphasis on trimming losses through cost control and operational efficiencies.
What Analysts Are Saying
Motilal Oswal Financial Services (MOFSL) remains upbeat on the stock, lifting its EBITDA projections by 5% for FY27 and 8% for FY28 on the back of improving margin trends. The brokerage sees margins strengthening further as newer stores mature and contribute more to overall performance, and expects Indonesia to see a slow but steady recovery following the closure of weaker stores — though it flagged that near-term headwinds there aren’t fully behind the company yet. MOFSL kept its ‘Buy’ call intact with a target price of ₹125, pointing to 75% potential upside from current levels.
From a technical standpoint, Harish Jujarey, AVP and head of technical equity research at Prithvi Finmart, flagged ₹60 as a firm support zone, with resistance building around the ₹88-90 range. He noted that a clean break above ₹90 would confirm a new uptrend and open room for further gains, suggesting current holders stay invested while considering partial profit booking near the 88-90 mark.
