Restaurant Brands Asia shares surge nearly 20% on strong Q1 results. What Motilal, other brokerages said

Shares of Restaurant Brands Asia (RBA), which operates Burger King India, jumped nearly 20% to Rs 84.57 on the BSE on Tuesday after posting strong Q1FY27 results. Consolidated revenue from operations rose 17.9% year-on-year to Rs 822.6 crore, while EBITDA surged 266% from a year earlier.

The company's Indian standalone business served as the primary growth driver, generating revenue of Rs 682.9 crore, up 23.6% YoY, with same-store sales growth (SSSG) hitting a 15-quarter high of 12.6%.

Standalone Restaurant EBITDA grew 68.1% YoY to Rs 90 crore, with margins widening to 13.2%. RBA expanded its store footprint to 752 operating outlets in India.


In a major strategic development, Inspira Global, owner of QSR chain Chinese Wok, completed the acquisition of a controlling 42% stake in RBA through an initial capital infusion of Rs 1,050 crore via fresh equity and warrants. Inspira Global plans to invest an additional Rs 450 crore to take its shareholding to 48%, significantly strengthening RBA's balance sheet for future expansion.

Brokerage Views

Domestic brokerage Motilal Oswal maintained its BUY rating on RBA with a target price of Rs 125, citing a recovery in the broader QSR sector and strong demand momentum continuing into 2QFY27. It raised its EBITDA estimates by 5% for FY27 and 8% for FY28 on better margin delivery.

The brokerage highlighted that RBA added 9 stores in 1QFY27 and aims to add 80 stores in FY27. It noted that the Indonesian business is gradually recovering as bone-in chicken now accounts for 50% of sales (vs 30% earlier), though near-term challenges persist. It also noted that Inspira Global has acquired a controlling stake through Lenexis Foodworks while retaining existing leadership, and both business groups will operate independently without co-located stores.

Nuvama noted that RBA's 24% YoY India revenue growth beat its 19% estimate, driven by a 14% store count increase. Industry-leading SSSG of 13% (vs 8% est.) was supported by value offerings and strong demand across channels. It added that momentum continued into July with new launches like Peri Burgers and Korean Burgers driving incremental footfalls.

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