Restaurant Brands Asia Limited (RBA), formerly known as Burger King India Limited, has reported compliant utilization of its Qualified Institutions Placement (QIP) proceeds and a solid revenue growth for the first quarter.

QIP Fund Utilization

According to the monitoring agency report submitted for the quarter ended June 30, RBA has shown no deviation from the stated objectives of its INR 500 crore QIP issue. ICRA Limited, the appointed monitoring agency, confirmed that the utilization of funds is in line with the intended purposes.

During the quarter, the company utilized INR 186.67 crore of the QIP proceeds as follows:

The remaining INR 313.33 crore of unutilized funds have been deployed in fixed deposits and mutual funds, generating returns between 7.65% to 9.62%.

Q1 Financial Performance

RBA's financial results for Q1 showcase a strong performance:

• Consolidated revenue from operations increased by 7.9% year-over-year to INR 6,977.23 crore.
• India operations revenue grew by 12.6% to INR 5,522.92 crore.
• Indonesia operations revenue decreased by 6.9% to INR 1,454.31 crore.

India Operations Highlights

• Same-store sales growth of 2.6%
• Addition of 63 new stores over the last year, bringing the total to 519 stores
• Restaurant EBITDA (Pre-IND AS 116) increased by 23.0% year-over-year to INR 536 million
• Company EBITDA (Pre-IND AS 116) grew by 28.6% year-over-year to INR 225 million

Indonesia Operations

• Rationalized portfolio by closing 4 non-performing stores
• Average Daily Sales (ADS) showed improvement, increasing by IDR 1 million every month for the past 9 months

Operational Initiatives

RBA has been focusing on several key initiatives to drive growth:

1. Menu Innovation: Launched the Korean Spicy Fest to capitalize on the "Hallyu Wave" and introduced new premium offerings like the Whopper Deluxe and BK Fusion range.

2. Digital Transformation: Implemented self-ordering kiosks in 484 out of 519 restaurants and introduced table ordering and service in all stores excluding food courts.

3. Value Leadership: Continued the "2for79" promotion to drive incremental traffic and offered "Crazy App Deals" to increase the frequency of BK App usage.

4. Indonesia Strategy: Piloting a new fast-casual dining model to improve Average Daily Sales and focusing on strengthening the chicken menu offerings.

Rajeev Varman, Whole-time Director and Group CEO of RBA, commented, "Innovation along with operational excellence has helped us navigate a dynamic environment. Our new Korean range of products have been well received, with guests appreciating the use of premium ingredients and authentic flavours."

Looking ahead, RBA aims to open 60 to 80 new restaurants annually in India, targeting approximately 800 restaurants by FY2029. The company also expects to achieve a gross profit margin of around 70% by FY2029.

As RBA continues to execute its growth strategy and optimize its operations, the company remains focused on creating enduring value for all stakeholders in both the Indian and Indonesian markets.

Restaurant Brands Asia Limited (RBA), formerly known as Burger King India Limited, has reported compliant utilization of proceeds from its INR 500.00 crore Qualified Institutions Placement (QIP) for the quarter ended June 30, 2025. The company's monitoring agency report, verified by ICRA Limited, confirms adherence to the stated objectives of the issue with no deviations observed.

Fund Utilization Breakdown

During the quarter, RBA utilized INR 186.67 crore of the QIP proceeds:

The majority of the funds allocated for general corporate purposes (INR 63.30 crore) were directed towards salary payments.

Unutilized Funds and Returns

The remaining INR 313.33 crore of unutilized funds have been strategically deployed:

• Fixed Deposits
• Mutual Funds

These investments are generating returns ranging from 7.65% to 9.62%, demonstrating the company's effort to maximize value while awaiting deployment for stated objectives.

Project Timelines

RBA has confirmed that all project timelines remain on schedule, with completion expected during the fiscal year 2026-2027. This indicates the company's commitment to executing its expansion and improvement plans as outlined in the QIP objectives.

Management Commentary

While specific management quotes were not provided, the report suggests that Restaurant Brands Asia is maintaining transparency in its fund utilization and is progressing as per its strategic plans.

Conclusion

The compliant fund utilization report for Q1 FY2026 reflects Restaurant Brands Asia's disciplined approach to deploying the QIP proceeds. With a significant portion of the funds still available and earning returns, the company appears well-positioned to continue its planned initiatives in debt reduction, restaurant expansion, and overall corporate development in the coming quarters.