Burma Burma's Parent Files IPO Papers With a ₹15.4 Crore Loss
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Burma Burma's Parent Files IPO Papers With a ₹15.4 Crore Loss
Hunger Pangs wants ₹150 crore of fresh capital to open 27 more restaurants, after a year in which revenue rose 46.6 percent and the net result went from a ₹50.5 lakh loss to ₹15.4 crore.
Hunger Pangs, the company behind the Burma Burma restaurant chain, filed a draft red herring prospectus, the preliminary document an Indian company files before an IPO, for a fresh issue of up to ₹150 crore and an offer for sale of up to 2.79 crore shares. Entrackr reported the filing on Oct. 17. No price band or issue date has been reported, so the IPO is announced rather than scheduled.
The filing is the first look at the company's accounts. Revenue from operations reached ₹155.5 crore in FY26 against ₹106.1 crore in FY25, a rise of 46.6 percent, according to Inc42. Entrackr rounds the same figure to ₹156 crore.
A ₹25.7 crore EBITDA beside a ₹15.4 crore loss
Operating profit looks healthy and the net result does not. EBITDA, earnings before interest, tax, depreciation and amortisation, was ₹25.7 crore in FY26, up from ₹21.4 crore. The margin slipped from 20.1 percent to 16.5 percent. Total expenses grew from ₹108.7 crore to ₹175.8 crore, and the net result moved from a loss of ₹50.5 lakh to a loss of ₹15.4 crore.
Neither report says what sits between a ₹25.7 crore EBITDA and a ₹15.4 crore loss. Entrackr's article gives the loss as ₹15.37 crore, while a linked headline on the same page cites ₹14 crore, so the exact figure should be read from the prospectus.
| Metric | FY26 | FY25 |
|---|---|---|
| Operating revenue | ₹155.5 crore | ₹106.1 crore |
| EBITDA | ₹25.7 crore | ₹21.4 crore |
| EBITDA margin | 16.5% | 20.1% |
| Net result | ₹15.4 crore loss | ₹50.5 lakh loss |
| Average bill value | ₹2,400 | ₹2,560 |
The average bill fell 6.3 percent, from ₹2,560 to ₹2,400, in a year when the chain went from 12 outlets to 21. Seating capacity rose from 1,082 to 1,991, per Inc42. The company had 22 restaurants across nine cities as of July 31, plus a delivery kitchen in Mumbai.
What the ₹150 crore is for
Inc42 reports that ₹117.29 crore of the fresh issue is earmarked for 27 company-owned outlets, 12 in FY28 and 15 in FY29. That is ₹4.34 crore an outlet by our arithmetic. The split is ₹10 crore in FY27, ₹54.63 crore in FY28 and ₹52.66 crore in FY29. General corporate purposes are capped at 25 percent of gross proceeds. Sites in Bengaluru, Surat, Jaipur, Kolkata and Delhi are identified for five of the outlets, and the rest are not.
- FY2710 ₹ crore
- FY2854.63 ₹ crore
- FY2952.66 ₹ crore
Source: Inc42 report on the Hunger Pangs DRHP, accessed 2026-10-17
The offer for sale sends money to sellers, not the company. Co-founders Ankit Gupta and Chirag Chhajer can each sell up to 60 lakh shares. Entrackr lists Negen Tech Opportunities Angel Fund at up to 64.68 lakh, Bbigplas Poly at up to 42 lakh and Venture Catalysts Angel Growth Fund at up to 27.72 lakh. Entrackr names Panthomath Capital Advisors as sole book-running lead manager. Inc42 does not name the bankers, and neither names the exchanges.
The valuation question
Inc42 reports that Hunger Pangs raised ₹38 crore at a ₹500 crore valuation months before the filing, and over $11 million in total. Dividing ₹500 crore by FY26 revenue gives 3.2 times, though the IPO price is unknown, so that is a floor for comparison rather than a forecast. The ₹150 crore fresh issue is about 96 percent of FY26 revenue.
The latest quarter is the better sign. Q1 FY27 revenue was ₹53.7 crore with EBITDA of ₹11.4 crore, a 21.3 percent margin. Net profit was ₹1.1 crore, helped by a ₹2 crore deferred tax credit, and the pre-tax result was a ₹89 lakh loss, per Inc42. The Terminal has also covered the Cult.fit IPO and Zetwerk's issue.
The next fixed point is the price band, which the company will publish once the regulator clears the draft.
Sources
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