United Foodbrands posts ₹23M net profit in Q1FY26, reversing prior loss
United Foodbrands achieved a financial turnaround in Q1FY26, posting a consolidated net profit of ₹23.08 million against a loss of ₹164.09 million in Q1FY25. Revenue grew significantly to ₹4,258.99 million, supported by domestic strength and strategic acquisitions in Thailand and Qatar. The company also addressed regulatory impacts from new Labour Codes and reversed past tax provisions.

*this image is generated using AI for illustrative purposes only.
united foodbrands turned profitable in the first quarter of FY26, reporting a consolidated net profit of ₹23.08 million compared to a net loss of ₹164.09 million in the corresponding quarter of the previous year. The company’s revenue from operations surged by 43.4% to ₹4,258.99 million, driven by strong domestic performance and expanded international footprint. This marks a significant operational turnaround for the restaurant chain, which has been restructuring its cost base and expanding its brand portfolio.
The Board of Directors approved the unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, at a meeting held on August 4, 2026. The statutory auditors, S.R. Batliboi & Associates LLP, issued a limited review report on the financial statements. The company operates under the name United Foodbrands Limited, having changed its name from Barbeque-Nation Hospitality Limited with effect from September 18, 2025.
Revenue and Profitability Metrics
United Foodbrands demonstrated robust top-line growth, with consolidated revenue rising to ₹4,258.99 million from ₹2,969.81 million in Q1FY25. Standalone revenue also grew sharply to ₹3,283.85 million from ₹2,289.36 million. Earnings before interest, tax, depreciation, and amortization (EBITDA) improved to ₹710.95 million on a consolidated basis, up from ₹479.73 million year-on-year. The EBITDA margin widened to approximately 16.7%, reflecting better operational leverage.
| Metric | Consolidated Q1FY26 | Consolidated Q1FY25 | Standalone Q1FY26 | Standalone Q1FY25 |
|---|---|---|---|---|
| Revenue from operations (₹ Mn) | 4,258.99 | 2,969.81 | 3,283.85 | 2,289.36 |
| EBITDA (₹ Mn) | 710.95 | 479.73 | 549.79 | 342.86 |
| Net Profit/(Loss) (₹ Mn) | 23.08 | (164.09) | 61.32 | (169.56) |
| EPS Basic (₹) | 0.79 | (4.20) | 1.57 | (4.34) |
Operational and Strategic Developments
The company continued its international expansion strategy during the quarter. In December 2025, its wholly owned subsidiary Barbeque Nation MENA Holding Limited acquired shares in United Foodbrands Thai Holding Co., Ltd. and United Foodbrands Thai Co., Ltd., making them step-down subsidiaries. Additionally, in February 2026, the company incorporated Barbeque Nation Restaurant W.L.L. in Doha, Qatar, furthering its presence in the Middle East.
Domestically, the company completed the amalgamation of Blue Planet Foods Private Limited into Red Apple Kitchen Consultancy Private Limited, as approved by the National Company Law Tribunal (NCLT) – Bengaluru Bench on May 29, 2026. The scheme became effective from April 1, 2024. The group also fully acquired 51% of Willow Gourmet Private Limited, operator of the ice-cream brand 'Omm Nom Nomm', in June 2025.
Regulatory and Compliance Updates
The company disclosed the financial impact of India’s new Labour Codes, which were notified in November 2025. Pursuant to restructuring employee compensation effective April 1, 2026, the group recognized an impact of ₹55.13 million towards gratuity and ₹19.58 million towards long-term compensated absences under "Employee benefits expense" for the year ended March 31, 2026. The company continues to monitor finalization of Central and State Rules regarding these codes.
Furthermore, the company reversed ₹61.42 million relating to income-tax provisions created in earlier years during FY26, following favorable appellate orders from income-tax authorities. This reversal was recognized under "Adjustment of tax relating to earlier years." The company also wrote off a loan and accrued interest of ₹273.72 million to its subsidiary Barbeque Nation MENA Holding Limited, following Reserve Bank of India approval.
What the Numbers Show
The shift from a significant net loss to a modest profit highlights the effectiveness of United Foodbrands' cost optimization measures. While revenue growth was substantial, the net profit remains thin due to high finance costs of ₹229.47 million and depreciation expenses of ₹457.14 million. The improvement in EBITDA margin suggests that operational efficiencies are being realized, but the bottom-line benefit is currently constrained by fixed costs and interest obligations. The international expansion initiatives may take time to contribute materially to earnings, given that some overseas entities have not yet commenced operations.
Historical Stock Returns for United Foodbrands
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +5.00% | +5.16% | +4.11% | +194.46% | +175.40% | -21.23% |
How will the high finance costs of ₹229.47 million impact United Foodbrands' ability to sustain profitability in upcoming quarters as interest rates fluctuate?
What is the expected timeline for the newly incorporated entities in Thailand and Qatar to begin contributing materially to consolidated revenue?
Will the recent acquisition of 'Omm Nom Nomm' help diversify revenue streams beyond core restaurant operations, and what are the projected synergies?

































