United Foodbrands (BARBEQUE) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue from operations was ₹3,048 million, nearly flat year-over-year and up 2.6% sequentially, with positive SSSG of 0.8% (excluding Navratri) and six new restaurants added, bringing the total to 241 outlets.

• International operations and premium casual dining segments delivered strong revenue and margin growth, offsetting softness in the core India business.

• Board approved unaudited standalone and consolidated financial results for the quarter and six months ended September 30, 2025; company changed its name to United Foodbrands Limited effective September 18, 2025.

• Same store sales growth (SSSG) was +0.8% excluding Navratri, but -2.2% including the festival period.

• Gross margin moderated to 66.2% due to value-based offers, higher food costs, and culinary initiatives.

Financial highlights

• Consolidated revenue for Q2 was ₹3,048 million, up 2.6% sequentially and nearly flat year-over-year.

• Gross margin declined to 66.2%, down 150 bps sequentially, due to value-based offers and higher food costs.

• Consolidated reported EBITDA was ₹458.16 million, with an operating margin of 12.4%; adjusted operating EBITDA was ₹33 million (1.1% margin).

• Net loss after tax for Q2 FY26 was ₹225 million, compared to a loss of ₹71 million in Q2 FY25.

• Cash and cash equivalents at the end of September 2025 were ₹166.88 million (consolidated).

Outlook and guidance

• On track to add 35 new restaurants in FY26 and targeting 300+ stores by FY27.

• Management expects gross margin to stabilize between 67%-68% going forward.

• H2 is expected to be seasonally stronger, with a targeted 8% corporate-level EBITDA margin pre-Ind AS.

• Strategic focus on network expansion, volume-driven SSSG growth, and scaling high-potential brands.

• Continued focus on the restaurant business segment, with predominant operations in India and some overseas presence.