Financial Performance Overview

Sapphire Foods India Limited reported its financial results for the quarter ended 30th June 2026 (Q1 FY27). This represents the company's second consecutive quarter of strong performance.

Revenue Performance:

  • Q1 FY27 Revenue: ₹8,882 million, representing 15% year-over-year (YoY) growth
  • This is the company's strongest revenue growth in the last 11 quarters

Profitability Metrics:

  • Consolidated Restaurant EBITDA: Increased by 23% YoY with margin at 13.0% (80 basis points expansion)
  • Consolidated Adj. EBITDA: ₹749 million, up 37% YoY with margin of 8.4% (130 basis points expansion)
  • Consolidated EBITDA: ₹1,406 million, up 24% YoY with margin of 15.8% (120 basis points expansion)
  • Consolidated Adj. PBT: ₹273 million at 3.1% margin
  • Consolidated PBT: ₹162 million at 1.8% margin (200 basis points improvement)

Store Expansion:

  • Added 16 KFC restaurants in India
  • Added 5 Pizza Hut restaurants in India
  • Added 1 Pizza Hut restaurant in Sri Lanka
  • Total restaurant count reached 1,074 as of 30th June 2026
  • Total net additions of 22 restaurants in the quarter

Segment Performance

KFC India Performance:

  • Revenue growth: 17% YoY
  • Same Store Sales Growth (SSSG): 5%
  • Restaurant EBITDA margin: 16.9% (120 basis points expansion YoY)
  • Performance drivers: Gross margin improvement, increased Dine-In & Take Away mix, operating leverage from positive SSSG
  • Consumer strategy: Two-pronged approach with disruptive Every Day Value (₹99 Chicken Krisper Burger Meal) and Abundant Value on select days (BOGO on Chicken Buckets)
  • Digital transformation: Digital Kiosks implemented at 75%+ of restaurants
  • Monthly Active Users: 2.7 million

Pizza Hut India Performance:

  • Revenue growth: 3% YoY
  • Same Store Sales Growth (SSSG): +1% (first positive SSSG after 5 quarters)
  • Dine-In SSSG: Positive
  • Restaurant EBITDA margin: Negative at -3.6% (110 basis points decline YoY)
  • Performance impacted by higher energy costs (primarily Gas cost)
  • Tamil Nadu exclusive territory performed well due to additional marketing investments and aggressive value Dine-In offers
  • Digital metrics: Total App Downloads 29 million+, Monthly Active Users 0.8 million+

Sri Lanka Business Performance:

  • Revenue growth: 14% in LKR terms
  • Same Store Sales Growth (SSSG): 9% in LKR terms
  • Restaurant EBITDA margin: 12.0% (70 basis points expansion YoY)
  • Operating leverage from positive SSSG was impacted by minimum wage revision and high energy & food cost inflation due to geopolitical conflict
  • LKR to INR conversion rate: 0.289 in Q1 FY27 (0.283 in Q1 FY26)
  • Absolute Restaurant EBITDA increased by 7% in LKR terms (9% in INR terms)

Additional Financial Details

Consolidated Profit & Loss Statement (₹ million):

| Particulars | Q1 FY27 | Q1 FY26 | YoY % | FY26 |

| Restaurant Sales | 8,882.39 | 7,748.05 | 15% | 31,159.02 |

| Other operating income | 27.21 | 20.23 | - | 94.15 |

| COGS | 2,780.57 | 2,533.42 | - | 9,951.38 |

| Gross Profit | 6,129.03 | 5,234.86 | 17% | 21,301.79 |

| Gross Margin% | 69.0% | 67.6% | - | 68.4% |

| Employee Expenses | 1,153.45 | 1,023.27 | 2% | 4,279.29 |

| Other Expenses | 3,569.28 | 3,077.73 | - | 12,218.52 |

| EBITDA | 1,406.30 | 1,133.86 | 24% | 4,803.98 |

| EBITDA Margin % | 15.8% | 14.6% | - | 15.4% |

| Depreciation | 973.62 | 919.52 | - | 3,921.48 |

| Finance Cost | 319.31 | 295.25 | - | 1,228.05 |

| Other Income | 48.30 | 62.47 | - | 212.54 |

| PBT before exceptional items | 161.67 | -18.44 | NA | -133.01 |

| PBT Margin % | 1.8% | -0.2% | - | -0.4% |

| Exceptional items | - | - | - | 239.59 |

| PBT after exceptional items | 161.67 | -18.44 | NA | -372.60 |

| Tax Expenses/(credit) | 21.45 | -1.06 | - | -53.06 |

| PAT | 140.2 | -17.38 | NA | -319.54 |

| PAT Margin% | 1.6% | -0.2% | - | -1.0% |

Notes:

  • Adj. EBITDA and Adj. PBT are before Ind-AS 116 adjustments
  • Adj. PBT & PBT of FY26 are before exceptional items of ₹240 million

Company Background

Sapphire Foods started operations in September 2015 by acquiring about 270 KFC and Pizza Hut Stores in India and Sri Lanka. The company is a leading YUM franchisee operator in the Indian subcontinent and is the largest international QSR chain in Sri Lanka in terms of revenue and number of restaurants operated as of March 31, 2021.

As of June 30, 2026, the company owns and operates:

  • 591 KFC restaurants in India
  • 346 Pizza Hut restaurants in India
  • 126 Pizza Hut restaurants in Sri Lanka
  • 11 Taco Bell restaurants in Sri Lanka

Additional Resources

The full Annual Report FY26 is available at: https://www.sapphirefoods.in/storage/app/media/annual-report-2025-26.pdf