Key Financial Performance Q2 FY27

Consolidated Performance:

  • Revenue: ₹429 crores, growing 40.9% year-on-year
  • Same-store sales growth (SSSG): 24.5%
  • Dine-in transaction volumes: 56% year-on-year growth
  • Delivery business: 47% year-on-year growth
  • Gross profit: 39.3% year-on-year growth
  • Gross margin: 65.5% (30 bps sequential decline due to inflationary environment)
  • Pre-Ind AS restaurant operating margin: 13.4% (520 bps YoY expansion)
  • Pre-Ind AS adjusted operating margin: 6.1% (~500 bps expansion over previous year)

Segment-wise Performance:

Barbeque Nation India:

  • Same-store sales growth: 27.8%
  • Revenue growth: 41.4%
  • Dine-in transaction volume growth: 60.8%
  • 85% of business from dine-in with strong unit economics
  • 80% of customers pre-reserving visits (vs 70% a year ago)
  • 90% of dine-in business through captive channels (app, website, reservation center, walk-ins)
  • Loyalty program adoption increased 3x year-on-year

Barbeque Nation International:

  • Same-store sales growth: 26.5%
  • Revenue growth: 59%
  • Dine-in transaction volume growth: 64%
  • Digital initiatives rolled out in Middle East markets
  • Session-wise, day-wise analytics implemented for dynamic optimization

Premium CDR:

  • Revenue growth: 28.5%
  • Same-store sales growth: 7.8%
  • Dine-in volume growth: ~25%
  • Mature restaurant margins in established markets: upwards of 18%
  • Average revenue per store: ₹6.5-7 crores in established markets

Restaurant Network & Expansion

  • Total restaurants: 274 as of September 30, 2026
  • New openings in Q2: 9 restaurants
  • Under construction: 19 restaurants (to open through Q3 and Q4 FY27)
  • Target: Cross 300 restaurants by end of FY27
  • Medium-term plan: 40-50 restaurants annually across portfolio
  • Funding: Primarily from internal accruals with prudent leverage limits

Operational Metrics

  • Mature portfolio pre-Ind AS restaurant operating margin: 14.7% for Q2, 15.5% for H1
  • New restaurant portfolio pre-Ind AS restaurant operating margin: 7.4% in Q2 (improved from 6.1% in Q1 FY27)
  • Gap between mature and consolidated margin: 1.3% (reduced from 1.6-1.8% previously)
  • Net debt position: Marginally higher during quarter due to capex deployment

Strategic Initiatives & Business Model

  • Rightsized restaurant design: 3,000 square feet area (reduced from 4,000-4,500 sq ft)
  • Big Buffet concept expansion in Tier 2/Tier 3 markets at ~₹450 average pricing
  • Three delivery brands: Barbeque in a Box (kebabs/tikkas), UBQ (daily meals), Dum Safar (biryani)
  • Throughput optimization focusing on weekday lunches and weekend lunches
  • Value-added marketing initiatives across international business

Management Commentary & Outlook

  • Fourth consecutive quarter of strong broad-based performance
  • Growth entirely volume-led with no price hikes taken over past year
  • Average realization lower by 7-8% YoY due to mix change (higher Big Buffet concepts)
  • Corporate cost increased to 10.3% of revenue (from 6.5% in Q1) due to new hires and loyalty program provisions
  • Employee cost inflation: 6-7% for back-end, 2-3% for store employees
  • Long-term SSSG target: 5-7% annually
  • Medium-term target: 500 restaurants by FY30 (up from previous guidance of 400-450)
  • October performance: Structurally strong despite Navratri impact in North India (30% drop for 9 days affecting ~40% of business)

Regional Performance

  • Broad-based growth across all regions with 20%+ SSSG in all four regions
  • North India seasonal impact due to Navratri (9 days affecting approximately 1-1.5% of overall SSSG)