Subway Plans ₹600 Crore IPO: What You Need to Know About EverBrands India

India’s food services market is growing rapidly with changing lifestyles and rising disposable income. As more people prefer dining out, companies offering premier food and beverages could scale their businesses.

EverBrands India is one such company which targets urban customers through quick service restaurants and cafes. It also serves luxury hotel chains and generates revenue from corporate clients.

The company doesn’t look at building brands from scratch. It focuses on the franchisee model where many stores are opened in a short time to scale the business.  

Now, this company is heading for an IPO.

So, what does the DRHP reveal about EverBrands business, financials and key risks?

 

Let's take a closer look.

EverBrands India Limited which is a part of the Everstone group had submitted the DRHP (Draft Red Herring Prospectus) to SEBI on September 28, 2026 for its IPO. The company operates many food and beverage brands like Subway, Lavazza coffee, Fresh and Honest coffee and is the exclusive distributor for the Sri Lankan tea brand Dilmah in India.

India’s food market is valued at rupees 5.5 to 5.8 lakh crore and is growing at a 6-7% CAGR. EverBrands India could tap into this growth and expand its business.

EverBrands India Limited engages in animal products and is not a suitable investment for Jains, Vegan and Vegetarian investors. 

EverBrands India Limited plans to raise ₹600 Crores through a fresh issue of shares in the IPO. The company will use most of the funds raised through the IPO for expanding its COCO (company-owner and company-operated) subway outlets across India.

EverBrands India Limited plans to use ₹125 crores of the amount raised through the IPO towards the repayment/prepayment of the borrowings of Culinary Brands India Private Limited, its wholly-owned subsidiary. The company will use ₹326.85 crores for setting up new Subway COCO stores. The company will also use the IPO proceeds for general corporate purposes.

The company has appointed ICICI Securities, Motilal Oswal Investment Advisors Limited and Nuvama Wealth Management Limited as book-running lead managers to the issue.. 

EverBrands India Ltd has two main business verticals:

• Quick Service Restaurants (QSR)

The company has exclusive master franchisee rights for Subway restaurants across India, Bangladesh and Sri Lanka.

• EverBrands used to focus on franchisee-owned outlets.  However, it has shifted towards the Company-Owned, Company-Operated (COCO) model for direct control and standardized customer services.

EverBrands network operated 1,008 Subway stores across India as of March 31, 2026. Out of these 1,008 Subway stores, 678 were COCO outlets and 330 were Franchise-Owned-Franchise-Operated (FOFO) stores.

The company also operated 8 FOFO Subway stores in Sri Lanka. EverBrands network has expanded stores run on the COCO model from 311 as of March 31, 2024 to 678 as of March 31, 2026.

• Beverages

EverBrands runs the beverage vertical through its subsidiary Fresh and Honest Café Private Limited (FHCPL). The subsidiary manages sourcing and distribution for the beverage portfolio.

The company serves as an exclusive brand and distribution partner in India for Sri Lankan tea brand Dilmah and Italian coffee label Lavazza.

It also earns revenue from the machine distribution model by placing and servicing automated coffee and tea machines across retail, institutional and corporate offices.

EverBrands India’s installed coffee machine base expanded from 7,217 machines in FY24 to 8,322 machines in FY25 and 9,455 machines in FY26.

• EverBrands India’s revenue from operations increased from ₹548.85 crore in FY24 to ₹716.06 crore in FY25 and ₹966.17 crore in FY26. The QSR vertical of EverBrands India generated ₹693.09 crores as revenue from operations in FY 2026. This increased from ₹480.38 crores in FY25 and ₹355.31 crores in FY 2024. The beverage vertical of the company generated ₹240.57 crores as revenue from operations in FY 2026. This increased from ₹206.36 crores in FY 2025 and ₹172.16 crores in FY 2024. 
   

• Its reported EBITDA increased from ₹64.21 crore in FY25 to ₹98.13 crores in FY26.

   

• Company’s losses widened from ₹16.67 crore in FY24 and ₹28.26 crore in FY25 to ₹58.19 crore in FY26 on account of rising spending on supply chain and tech.

   

• EverBrands India’s finance costs increased from ₹31.21 crores in FY 25 to ₹54.63 crores in FY26. The main reasons were the higher interest on debt for its expanding COCO network. 

   

• Royalty fees also increased from ₹68.28 crores in FY25 to ₹80.62 crores in FY26. Commission and delivery expenses rose from ₹49.19 crores in FY25 to ₹72.07 crores in FY26.

EverBrands India is betting on rapid expansion of company owned Subway outlets, and the revenue numbers show the model is scaling. COCO stores jumped from 311 in FY24 to 678 in FY26, and top line growth is strong across both QSR and beverages. EBITDA is improving too, which suggests unit economics are working. 
 

However, rising losses and mounting debt mean the company is borrowing heavily to fuel growth. The IPO proceeds will cover some debt repayment and new store expansion, but execution matters. Watch how margins evolve once the expansion slows and stores mature. 
 

EverBrands India has just filed its IPO with SEBI and the opening date, price band and lot size have not been finalized. 

When will EverBrands India IPO open?

The company has just filed the DRHP and is waiting for Sebi’s approval.

What is the price band of EverBrands India IPO?

The Company has not finalized the IPO price band.

What is the lot size of EverBrands India IPO?

The Company has not finalized the IPO lot size.

Who are the book-running lead managers to the issue?

The company has appointed ICICI Securities, Motilal Oswal Investment Advisors Limited and Nuvama Wealth Management Limited as book-running lead managers to the issue.

Is EverBrands India IPO suitable for all investors?

EverBrands India Limited engages in animal products and is not a suitable investment for Jains, Vegan and Vegetarian investors.