Sapphire Foods India Limited – Investor Presentation Summary

Key Operational Highlights

  • Total restaurant count reached 1,074 as of June 30, 2026, across India, Sri Lanka, and Maldives.
  • Brand-wise restaurant count: 591 KFC, 472 Pizza Hut, and 11 Taco Bell restaurants.
  • Omni-channel mix: Delivery 43%, Dine-In 34%, Take Away 23%.
  • Net restaurant additions of 22 in Q1 FY27.
  • Key drivers: Expansion of smaller-sized omnichannel restaurants, digital kiosk rollout across 75%+ estate, and own delivery growth.

Segment-wise Performance

KFC India:

  • Restaurant count: 591 as of June 30, 2026 (16 net additions in Q1 FY27)
  • Average Daily Sales per Restaurant: ₹118,000 for 3M FY27
  • Restaurant Related Revenue: ₹6,183 Mn for 3M FY27, up 17% YoY
  • Restaurant EBITDA: 16.9% for 3M FY27, up 120 bps YoY

Pizza Hut India:

  • Restaurant count: 346 as of June 30, 2026 (5 net additions in Q1 FY27)
  • Average Daily Sales per Restaurant: ₹44,000 for 3M FY27
  • Restaurant Related Revenue: ₹1,360 Mn for 3M FY27, up 3% YoY
  • Restaurant EBITDA: -3.6% for 3M FY27, down 110 bps YoY
  • Explanation: Challenges continue despite improved dine-in speed of service and exclusive offers in Tamil Nadu.

Sri Lanka Business:

  • Restaurant count: 137 as of June 30, 2026 (1 net addition in Q1 FY27)
  • Average Daily Sales per Restaurant: ₹112,000 for 3M FY27
  • Restaurant Related Revenue: ₹1,349 Mn for 3M FY27, up 16% in INR terms and 14% in LKR terms YoY
  • Restaurant EBITDA: 12% for 3M FY27, down 70 bps YoY

Financial Highlights

Q1 FY27 Performance:

  • Restaurant Sales: ₹8,882 Mn, up 15% YoY
  • Adj. EBITDA: ₹749 Mn, up 37% YoY (8.4% margin, up 130 bps YoY)
  • EBITDA: ₹1,406 Mn, up 24% YoY (15.8% margin, up 120 bps YoY)
  • Adj. PBT before exceptional items: ₹273 Mn, up 229% YoY (3.1% margin, up 200 bps YoY)
  • PBT before exceptional items: ₹162 Mn vs. -₹18 Mn in Q1 FY26 (1.8% margin, up 200 bps YoY)

Full Year FY26 Performance:

  • Restaurant Sales: ₹31,159 Mn
  • Adj. EBITDA: ₹2,382 Mn (7.6% margin)
  • EBITDA: ₹4,804 Mn (15.4% margin)
  • Adj. PBT before exceptional items: ₹361 Mn (1.2% margin)
  • PBT before exceptional items: -₹133 Mn (-0.4% margin)

Drivers of financial performance: Improved operational performance, particularly in KFC brand, and growth in restaurant sales.

Key Risks: Not explicitly disclosed in the presentation.

Geographical Revenue Split

  • Domestic vs Export/Regional Revenue: Not explicitly broken down in the presentation.
  • Regional Breakdown: KFC and Pizza Hut present in 10 and 11 states of India respectively, covering 56% of India's GDP. Present in 5 and 6 of the Top 8 cities respectively, which contribute 87% of chain food services market.

Balance Sheet Snapshot

  • Net Debt/Equity: Not specified
  • Reserves: Not specified
  • Current Assets/Liabilities: Not specified
  • Working Capital/Leverage Metrics: Not specified
  • Financial Health Insights: Not specified

Capex & Cash Flow Health

  • Capital Expenditure: Not specified for current period
  • Free Cash Flow: Not specified
  • Operating Cash Flow: Not specified
  • Net Debt Movement: Not specified
  • Investment Rationale: Focus on smaller-sized omnichannel restaurants for expansion

Strategic & R&D Initiatives

  • Investments in Innovation: Digital kiosks rolled out across 75%+ estate, new product innovations (KFC: Crafted Flatzz, Baked Chicken Wings, Masala Beverages; Pizza Hut: similar innovations)
  • Expected impact on growth: Not quantified
  • Strategic Rationale: Expanding into high-growth markets, reducing operational costs through smaller restaurant formats

Industry Trends & Business Environment

  • Macro/Industry Trends: Not explicitly discussed
  • Impact on Company: Not specified

Management Commentary & Growth Outlook

  • Strategic Outlook: Focus on frictionless consumer experience, taste superiority, differentiated dine-in experience, hot n fresh delivery, and competitive value for money
  • FY Guidance: Not provided
  • Market Share Targets: Not specified
  • Risks and Opportunities: Not highlighted in detail

Additional Headings

Merger Update:

  • The board of directors of Sapphire Foods and Devyani International approved a merger scheme on 1st January 2026.
  • The scheme is subject to statutory and regulatory approvals from various authorities.

Unit Economics:

  • Average restaurant size reduction: ~45% for both KFC (from 2,736 sq. ft. to ~1,500 sq. ft.) and Pizza Hut (from 2,427 sq. ft. to ~1,200 sq. ft.) since FY19
  • Average Daily Sales per Restaurant: KFC ₹110,000 in FY26 (down from ₹125,000 in FY19); Pizza Hut ₹41,000 in FY26 (down from ₹61,000 in FY19)
  • Restaurant EBITDA: KFC 16.3% in FY26 (up from 12.7% in FY19); Pizza Hut -3.3% in FY26 (down from 7.5% in FY19)