Restaurant Chain Reports 47% Revenue Growth as Higher Depreciation and Operating Expenses Weigh on Profitability
Vegetarian pan-Asian restaurant chain Burma Burma delivered strong top-line growth in FY26, with its operating revenue rising 47% year-on-year to ₹155.6 crore. Despite the robust growth and a healthy improvement in EBITDA, the company reported a wider net loss of ₹14.5 crore, primarily due to a sharp rise in depreciation, amortisation, and operating expenses linked to expansion.
According to the company’s financial statements filed with the Registrar of Companies (RoC), Burma Burma continued to expand its presence across India while strengthening its position in the premium casual dining segment. The company also recorded a significant increase in EBITDA, reflecting healthy operating performance despite pressure on the bottom line.
The results highlight the challenges faced by rapidly expanding restaurant brands, where investments in new outlets and infrastructure often impact short-term profitability.
Revenue Crosses ₹150 Crore Milestone
Burma Burma’s operating revenue increased to ₹155.6 crore in FY26, compared to ₹106 crore in the previous financial year, representing a 47% annual growth.
The company currently operates more than a dozen restaurants across major cities, including Delhi NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Ahmedabad, and Chandigarh, serving vegetarian Burmese cuisine inspired by Indian, Chinese, and Thai flavors.
Among all markets, Bengaluru emerged as the company’s largest revenue contributor, generating nearly ₹50 crore, or over 32% of total revenue.
Mumbai followed with ₹38.4 crore, while Delhi and Gurugram contributed approximately ₹15 crore each. Additional revenue came from Hyderabad, Noida, Kolkata, Ahmedabad, and Chandigarh.
Dine-In Continues to Drive Business
Dine-in remained the primary growth engine for Burma Burma during FY26.
Restaurant dining contributed ₹128 crore, accounting for nearly 82% of the company’s total operating revenue.
Meanwhile, online food delivery platforms generated ₹15.9 crore, reflecting the continued importance of digital ordering alongside physical restaurant operations.
The revenue mix indicates that despite the growing popularity of food delivery, customers continue to prefer the dine-in experience offered by premium restaurant brands.
Operating Costs Rise Sharply
While revenue witnessed strong growth, expenses increased at an even faster pace as the company continued investing in expansion.
Employee benefit expenses increased 44% year-on-year to ₹48.5 crore, making salaries and workforce costs one of the largest expenditure categories.
Material costs, including food ingredients and raw materials, rose 50% to ₹30 crore.
One of the biggest contributors to the wider losses was depreciation and amortisation, which nearly doubled to ₹40.8 crore during FY26. The sharp increase reflects investments in new restaurant locations, infrastructure, and fixed assets.
Other operating costs also moved higher.
Restaurant rental expenses increased 43% to ₹8.3 crore, while advertising and marketing expenses doubled to ₹5.6 crore.
Additional spending on power, fuel, utilities, transportation, and other overheads further pushed total expenses to ₹175.4 crore, representing a 60% increase over ₹110 crore reported in FY25.
EBITDA Improves Despite Higher Losses
Although net losses widened, Burma Burma delivered encouraging operational performance.
The company’s EBITDA increased 35% year-on-year to ₹29 crore, highlighting stronger profitability before accounting for depreciation, interest, and taxes.
Its EBITDA margin stood at 18.65%, indicating healthy operating efficiency despite increasing costs.
However, because depreciation and amortisation expenses rose significantly, the company reported a net loss of ₹14.5 crore, compared to a loss of ₹2.5 crore in FY25.
Burma Burma also reported a Return on Capital Employed (ROCE) of -10.1%.
On an operational basis, the company spent approximately ₹1.13 to generate every ₹1 of operating revenue during FY26.
Financial Position and Future Outlook
As of March 2026, Burma Burma reported ₹18 crore in cash and bank balances, while total current assets stood at ₹24.6 crore, providing liquidity to support future expansion.
The company has raised $11 million in funding to date.
Most recently, it secured $4 million (approximately ₹38 crore) in funding in March 2026, valuing the company at around ₹500 crore.
The fresh capital is expected to support continued restaurant expansion, strengthen operations, and enhance customer experience across existing and new markets.
While FY26 reflected higher losses due to expansion-led investments, the company’s strong revenue growth and improving EBITDA indicate sustained consumer demand for premium dining experiences.
As Burma Burma continues adding outlets and leveraging economies of scale, investors will closely watch whether operating efficiencies begin translating into sustainable profitability in the coming years.
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