EverBrands India IPO

Strengths · 8

• 01Revenue from operations grew 34.93% in FY2026 to Rs 966.17 crore, after 30.47% growth in FY2025.
• 02The company holds exclusive long-term master franchise rights for Subway in India, Sri Lanka and Bangladesh, and ran 1,008 Subway stores across more than 160 cities as of 31 March 2026.
• 03Net cash flow generated from operating activities was positive in all three years, at Rs 94.18 crore in FY2026, Rs 53.13 crore in FY2025 and Rs 42.16 crore in FY2024.
• 04EBITDA rose from Rs 43.37 crore in FY2024 to Rs 98.13 crore in FY2026, and the EBITDA margin improved from 7.90% to 10.16% over the same period.
• 05Average daily sales at COCO stores rose to Rs 31,962 in FY2026 from Rs 30,316 in FY2025, and same-store sales growth turned positive at 6.20% after a fall of 2.40% in FY2025.
• 06The company shifted its store mix towards owned stores, taking COCO stores from 311 in FY2024 to 678 in FY2026, and gross profit from COCO operations rose from Rs 182.70 crore to Rs 440.46 crore with margins held at 72.03%.
• 07The beverages vertical added 1,133 machines on a net basis in FY2026 to reach an installed base of 9,455 machines, after net additions of 1,105 in FY2025 and 1,027 in FY2024.
• 08The statutory auditors have recorded no qualifications that are not given effect to in the restated consolidated financial information.

Risks · 10

• 01The company has reported a loss in each of the last three years, and the loss widened from Rs 16.67 crore in FY2024 to Rs 28.26 crore in FY2025 and Rs 58.19 crore in FY2026.
• 02Purchases from the top ten suppliers were 94.13% of cost of goods sold in FY2026, up sharply from 73.55% in FY2025 and 64.47% in FY2024, so the supply base is far more concentrated than it was.
• 03The QSR vertical gave 71.74% of revenue from operations in FY2026, against 64.74% in FY2024, so any damage to Subway's brand or to this vertical hits most of the business.
• 04All Subway stores run under master franchise agreements that impose restrictions and development obligations; failure to meet the development schedule can be an event of default and lead to termination of the agreements.
• 05Borrowings rose from nil in FY2024 to Rs 50.01 crore in FY2025 and Rs 149.71 crore in FY2026, and Rs 125.00 crore of the fresh issue is going to repay borrowings at the subsidiary CBIPL.
• 06Net worth fell from Rs 510.65 crore in FY2024 to Rs 487.31 crore in FY2025 before recovering to Rs 568.09 crore in FY2026, and return on net worth was negative in all three years, at a negative 10.16% in FY2026.
• 07Net cash used in investing activities was Rs 238.55 crore in FY2026 against operating cash flow of Rs 94.18 crore, so the store rollout is being funded by borrowing and fresh capital rather than by the business.
• 08Gross profit margin at the beverages subsidiary FHCPL fell from 42.38% in FY2024 to 38.42% in FY2025 and 37.21% in FY2026, and its EBITDA fell from Rs 20.68 crore to Rs 16.76 crore over the same period.
• 09Three tax proceedings involving Rs 34.91 crore are outstanding against the company, and 45 tax proceedings and six actions by statutory or regulatory authorities involving Rs 112.48 crore are outstanding against the subsidiaries.
• 10General corporate purposes may take up to 25% of the gross proceeds, and a pre-IPO placement of up to Rs 120.00 crore may reduce the issue, so part of the money raised has no named use yet.

EverBrands India Limited, formerly known as Culinary Brands Private Limited, is a multi-brand food and beverages platform. It runs two verticals. The QSR vertical holds the exclusive master franchisee rights for Subway restaurants across India, Sri Lanka and Bangladesh, with the exclusive right to build, operate and sub-franchise in these territories. The beverages vertical sells the premium international brands Lavazza coffee and Dilmah tea along with the company's own Fresh and Honest coffee brand. The company carries the corporate identity number U55100DL2017FLC326137.

Its Subway stores sell freshly prepared and customisable sandwiches, wraps, salads, rice bowls, cookies, sides and beverages, priced across entry, bridge and premium points under what the company calls a barbell menu strategy. The beverages vertical sells roasted beans, filter coffee, single-origin premium blends and premium teas, along with bean-to-cup, semi-automatic, filter coffee and vending machines. Customers include retail consumers at high street locations, malls, hospitals, universities, corporate parks and transit locations, delivery aggregators, and institutional clients such as hotels, corporate campuses and quick-service restaurants. The products also sell on e-commerce and quick-commerce platforms.

Revenue is reported in three segments. The QSR vertical gave Rs 693.09 crore or 71.74% of revenue from operations in FY2026, the beverages vertical Rs 240.57 crore or 24.90%, and others Rs 32.52 crore or 3.36%. In FY2024 the QSR share was 64.74%, so the Subway business has grown faster than the beverages business over the three years.

As of 31 March 2026 the company operated 1,008 Subway stores across more than 160 cities in India, with 407 stores in the north, 290 in the west, 251 in the south and 60 in the east. Of these, 678 were company-owned company-operated (COCO) stores and 330 were franchisee-owned franchisee-operated (FOFO) stores. It also runs eight FOFO stores in Sri Lanka, holds master franchise rights for Subway in Bangladesh, and has a right of first refusal in Nepal and Bhutan. The beverages vertical had an installed base of 9,455 coffee machines and a service network across more than 40 cities.

All business premises are leased, licensed or subleased. The registered office is at Eros Corporate Towers, Nehru Place, New Delhi, and the corporate office is at K.P. Aurum, Marol, Andheri East, Mumbai. The subsidiary FHCPL runs the group's manufacturing hub at Sri City, Andhra Pradesh, for coffee roasting, processing, packaging and coffee machine assembly and manufacturing. The promoters are Sameer Sain and Atul Kapur, the co-founder chief executive officer and co-founder chief investment officer of Everstone Capital Asia Pte. Ltd., along with three holding companies, EverBrands Ventures Pte. Ltd. and Everstone Stratvest Pte. Ltd. of Singapore and Evergroup Limited of the Cayman Islands.

The industry

The company sells into India's food services and packaged beverages markets. The TKC Report it cites values India's food service industry at Rs 5,613 billion in FY2025 and projects Rs 9,088 billion by FY2030, a compound annual growth rate of 10.1%. Within that, the organised quick-service restaurant sub-segment stood at Rs 798 billion in FY2025. India's packaged tea and coffee market reached Rs 350 billion in FY2025, up from Rs 217 billion in FY2020, and is expected to reach Rs 509 billion by FY2030; packaged coffee was Rs 97 billion of that in FY2025, about a 28% share against 25% in FY2020, growing at 12.2% a year and outpacing packaged tea. The Indian coffee vending machine services market was estimated at around 150,000 machines in FY2025 and is projected to reach 230,000 machines by FY2030, a growth rate of 8.8% a year. The report places Subway as the second largest QSR chain globally as of 31 December 2025 and the third largest in India by store count as of 31 March 2026.

Customer concentration: The company reports no revenue concentration among its top five customers, as it sells to retail consumers through 1,008 Subway stores and to institutional beverage clients. Its concentration sits on the supply side, where the top ten suppliers were 94.13% of cost of goods sold in FY2026 against 64.47% in FY2024.