UFBL

United Foodbrands Limited delivered its highest ever quarterly revenue of INR 377 crores in Q3 FY26, marking a 14.5% year-on-year and 23.6% sequential growth. This performance was underpinned by a robust 8.2% Same-Store Sales Growth (SSSG) and record dine-in walk-ins across restaurants. Consolidated dine-in volumes grew 26% and delivery transactions increased by 29%, with Barbeque Nation India's dine-in volumes specifically growing 25% YoY.

The company consciously increased marketing investments and made measured investments in gross margins to drive transaction growth, which led to a 20 basis points quarter-on-quarter improvement in gross profit margin. While the Pre-Ind AS restaurant operating margin stood at 15.7% (compared to 16.5% in Q3 FY25 due to new store ramp-ups), mature restaurants maintained a healthy 17.2%. Management aims to restore overall gross margins to 67-68% and achieve double-digit pre-Ind AS corporate level EBITDA margins in the near term.

All three verticals contributed to growth, with Barbeque Nation India growing 10.1% YoY, International business growing 47%, and Premium CDR segment growing 19.7%. Digital adoption significantly strengthened, with 53% of overall dine-in transactions now rated through the company's own digital channels. Customer engagement and loyalty dynamics improved, evidenced by a 10% reduction in repeat visit time gap and consistently high feedback scores.

United Foodbrands launched 8 new restaurants in Q3, bringing the total to 249, with 18 more currently under construction. The company revised its FY26 target to approximately 265 restaurants and aims to cross 300 by the end of FY27. Notably, the company generated INR 10 crores of cash this quarter (net of capex), reducing net debt to INR 80 crores from INR 90 crores, demonstrating a shift towards funding expansion through internal accruals.

The International business, despite a tapering SSSG to 5.8%, maintained strong Pre-Ind AS operating margins of 23.1% (over 27% for mature restaurants) and is focused on scaling up its presence in new markets like the Middle East and Southeast Asia, targeting 23-25 restaurants by FY27. The Premium CDR segment, with 9.4% SSSG and 73% gross margin, is expanding its Toscano and Salt brands into new metro markets, though new store ramp-ups and a higher delivery mix temporarily impacted its gross margins.

Historically a slower-performing region, the South Indian market has shown meaningful improvement in performance, now broadly aligning with national trends. The company is actively pursuing expansion opportunities in South India, with new stores planned for cities like Bangalore and Chennai, indicating a strategic focus on regional growth.