Subway India Operator EverBrands Files DRHP for Rs 600 Crore Fresh Issue IPO

EverBrands India Limited, the master franchise operator of quick-service restaurant (QSR) giant Subway in India, has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) to raise up to ₹600 crore via an initial public offering (IPO).

The proposed public issue is an entirely fresh issue of equity shares with no offer for sale (OFS) component, indicating that existing private equity backers and promoters will not be offloading shares in the transaction. The company has also noted that it may explore a pre-IPO placement of up to ₹120 crore; should such an allotment take place, the fresh issue component will be scaled down accordingly.

The equity shares are proposed to be listed on both the BSE and the National Stock Exchange of India (NSE). Motilal Oswal Investment Advisors, ICICI Securities, and Nuvama Wealth Management have been appointed as the book-running lead managers, while MUFG will serve as the registrar to the issue.

Utilization of IPO Proceeds

EverBrands has detailed specific capital expenditure and deleveraging milestones for the net proceeds from the issue:

• Store Expansion: ₹326.85 crore will be deployed toward capital expenditure for launching new Subway outlets under the company-owned, company-operated (COCO) format.
• Debt Repayment: ₹125 crore will be utilized to prepay or repay outstanding borrowings, strengthening the company's balance sheet.
• General Corporate Purposes: The remainder of the capital will support working capital requirements and overall business expansion.

Business Footprint and Multi-Brand Portfolio

EverBrands operates the Subway franchise network in India via its wholly owned subsidiary, Culinary Brands India Private Limited (CBIPL), which holds the master franchise rights across India, Sri Lanka, and Bangladesh.

Beyond Subway, the company oversees an integrated food and beverage ecosystem through Fresh and Honest Café Private Limited, managing Lavazza Coffee, F&H Coffee, and holding distribution rights for Ceylon tea brand Dilmah in the Indian market.

As of FY26, EverBrands' Subway network surpassed the 1,000-store milestone. The chain operated 678 COCO stores and 330 franchisee-owned, franchisee-operated (FOFO) stores across India, alongside eight FOFO outlets in Sri Lanka. The Subway business constitutes the core revenue driver for the group, generating nearly 72% of total operating revenue.

Financial Performance

EverBrands recorded robust top-line growth in the fiscal year ended March 31, 2026, though expansion expenses weighed on profitability:

• Revenue: Consolidated revenue from operations jumped 34.9% year-on-year to ₹966.17 crore in FY26, up from ₹716.06 crore in FY25. The QSR vertical alone delivered ₹693.09 crore.
• Operating Earnings: Earnings before interest, tax, depreciation, and amortization (EBITDA) rose to ₹98.13 crore in FY26, compared to ₹64.21 crore in the previous fiscal year.
• Net Loss: Net loss widened to ₹58.19 crore for FY26 from ₹28.26 crore in FY25, largely driven by aggressive store rollouts, elevated finance costs, and depreciation expenses.

Market Context and Peer Landscape

The DRHP filing positions EverBrands alongside leading listed QSR operators in India, including Jubilant FoodWorks (Domino's), Devyani International (KFC, Pizza Hut), Sapphire Foods, Restaurant Brands Asia (Burger King), and Westlife Foodworld (McDonald's).

The public offering follows recent private equity interest; in early 2026, mid-market investment firm Playbook Partners acquired a minority stake in EverBrands via a $15 million funding round, valuing the enterprise at ₹2,600 crore to ₹2,800 crore. With Indian consumers steadily prioritizing convenience and branded dining, EverBrands' pure fresh-issue structure emphasizes balance-sheet strengthening and accelerated physical store additions in Tier-1 and Tier-2 cities.

Tags: EverBrands India Subway SEBI NSE BSE QSR