The company plans to use ₹326.85 crore of the IPO proceeds to set up new company-owned, company-operated (COCO) Subway stores. Another ₹125 crore will be used to repay or pre-pay borrowings of its wholly owned subsidiary Culinary Brands India.
The remaining proceeds will be used for general corporate purposes.
EverBrands said locations for the new stores to be funded through the IPO have not yet been finalised. The proposed deployment is based on management estimates and has not been appraised by any bank or financial institution.
Company-operated Subway network expands
EverBrands operates a food and beverage platform that includes Subway, Lavazza, Dilmah and its own Fresh & Honest brand.
As of March 31, 2026, the company had 1,008 Subway stores in India. Of these, 678 were COCO stores and 330 were franchisee-owned, franchisee-operated (FOFO) outlets.
The COCO network has more than doubled from 311 stores in FY24 to 678 in FY26.
EverBrands opened 151 COCO stores during FY26, while 252 stores were opened or acquired during the year. Capital expenditure on COCO stores stood at ₹105.22 crore, with average capex of ₹69.7 lakh per store opened.
The expansion helped drive QSR revenue, which rose to ₹693.09 crore in FY26 from ₹480.38 crore in FY25 and ₹355.31 crore in FY24.
Revenue rises but losses widen
EverBrands’ revenue from operations increased 34.93% to ₹966.17 crore in FY26 from ₹716.06 crore in FY25 and ₹548.85 crore in FY24.
Reported EBITDA rose to ₹98.13 crore from ₹64.21 crore, while the EBITDA margin improved to 10.16% from 8.97%.
However, the company remained loss-making. Its FY26 loss widened to ₹58.19 crore from ₹28.26 crore in FY25 and ₹16.67 crore in FY24.
Adjusted EBITDA stood at ₹28.61 crore, giving an adjusted EBITDA margin of 2.96%.
EverBrands’ finance costs also increased to ₹54.63 crore in FY26 from ₹31.21 crore, which the company attributed mainly to higher interest on lease liabilities and financial liabilities as its COCO network expanded.
Royalty fees rose to ₹80.62 crore from ₹68.28 crore, while commission and delivery expenses increased to ₹72.07 crore from ₹49.19 crore.
Beverage business adds another revenue stream
Beyond Subway, EverBrands operates beverage businesses through its exclusive partnerships with Lavazza and Dilmah, along with its Fresh & Honest brand.
Revenue from the beverage business increased to ₹240.57 crore in FY26 from ₹206.36 crore in FY25 and ₹172.16 crore in FY24.
The number of installed coffee machines also increased to 9,455 in FY26 from 8,322 in FY25 and 7,217 in FY24.
However, the company has a single coffee roasting and processing facility and a single machine manufacturing and assembly facility at Sri City in Andhra Pradesh, making these facilities critical to the beverage business.
Subway franchise rights and risks
EverBrands holds exclusive master franchise rights for Subway across India, Sri Lanka and Bangladesh. Its current master franchise agreements run until December 15, 2031, with an option to extend them until December 15, 2041, subject to certain conditions.
The company pays royalties to Subway, including 6% of monthly gross sales for existing stores operating under specified third-party sub-franchise arrangements and 6.5% of gross sales for COCO stores.
The DRHP also flags development obligations as a risk. EverBrands said it had not met certain store-development requirements in Sri Lanka and Bangladesh because of macroeconomic factors, although it had not received a notice of non-compliance as of the DRHP date.
The company also flagged risks related to its dependence on the Subway brand, food safety, the performance of new COCO stores, debt and financing costs, foreign exchange movements and outstanding litigation.
EverBrands had borrowings of ₹149.71 crore as of March 31, 2026. Adjusted net debt, after taking into account cash and certain fixed deposits, stood at ₹117.39 crore.
IPO comes amid rapid food-services growth
The IPO comes as India’s organised food-services market continues to expand.
According to the industry report cited in EverBrands’ DRHP, India’s overall food-services market is projected to grow from ₹5.61 lakh crore in FY25 to ₹9.09 lakh crore by FY30.
The organised segment is expected to grow from ₹2.80 lakh crore to ₹5.27 lakh crore over the same period.
For EverBrands, the IPO will provide funds to accelerate its company-operated Subway expansion while reducing some debt. However, the company will also need to turn its growing store network into sustainable profits as it manages higher lease, finance, royalty and operating costs.
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