The restaurant chain's consolidated net loss widened to 504.8 million rupees ($6.1 million) for the quarter ended June 30, from 475 million rupees a year ago, according to an exchange filing.

Total expenses increased over 21% to 6.72 billion rupees, with cost of materials consumed climbing 26% due to rising costs of ingredients including cheese and vegetables.

Rising costs have pressured bottom lines at its rivals as well, including KFC franchisees Sapphire Foods India and Devyani International as well as Domino's Pizza operator Jubilant FoodWorks.

Earlier this year, Restaurant Brands Asia launched new meals starting at 99 rupees ($1.20), at a time when global chains in India doubled down on cheaper offerings to attract consumers cutting back discretionary spending due to high inflation.

Revenue from operations rose 25% to 6.11 billion rupees, helped by the new launch and the company's move to open tens of new restaurants in both India and Indonesia, where it holds master franchisee rights, in the previous 12 months.

Shares of Restaurant Brands Asia, which also operates Restaurant Brands International's Popeyes stores in Indonesia, were up nearly 2% after the results. For the June quarter, they were up nearly 20%.

($1 = 82.7175 Indian rupees)

(Reporting by Praveen Paramasivam in Chennai; Editing by Varun H K)