Sapphire Foods Q2 FY27 EBITDA Up 21% YoY

Sapphire Foods India Limited – Investor Presentation Summary

Key Operational Highlights

Total restaurant count reached 1,086 as of 30 September 2026 across India, Sri Lanka and Maldives
Brand-wise breakdown: 606 KFC restaurants, 469 Pizza Hut restaurants, 11 Taco Bell restaurants
Omni Channel Mix: Delivery 44%, Take Away 22%, Dine In 34%
Net restaurant additions of 34 in 6M FY27 (12 in Q2 FY27)
KFC and Pizza Hut brands operate in states that cover 56% of India's GDP
Brands present in 34 cities where 491 restaurants of both KFC and Pizza Hut are operated

Key drivers of operational performance:

Focus on smaller sized omnichannel restaurants with reduced average restaurant sizes by ~45%, digital kiosks rolled across 80%+ estate, own delivery growth, and market-specific value offers.

Segment-wise Performance

KFC India Performance (6M FY27):

Total Restaurant Count: 606 (575 as of Mar 31, 2026)
Average Daily Sales per Restaurant (INR'000s): 116 (110 in FY26)
Restaurant Related Revenue: ₹12,296 Mn, up 21% YoY
Restaurant EBITDA: 15.7%, improved 90 bps YoY (16.3% in FY26)

Pizza Hut India Performance (6M FY27):

Total Restaurant Count: 342 (341 as of Mar 31, 2026)
Average Daily Sales per Restaurant (INR'000s): 44 (41 in FY26)
Restaurant Related Revenue: ₹2,743 Mn, up 5% YoY
Restaurant EBITDA: -3.2%, improved 110 bps YoY (-3.3% in FY26)

Sri Lanka Business Performance (6M FY27):

Total Restaurant Count: 138 (136 as of Mar 31, 2026)
Average Daily Sales per Restaurant (INR'000s): 111 (108 in FY26)
Restaurant Related Revenue: ₹2,716 Mn, up 12% in INR terms (11% in LKR terms) YoY
Restaurant EBITDA: 12.3%, declined 180 bps YoY (14.9% in FY26)

Explanation of significant changes in segment performance:

KFC growth driven by value offers like ₹99 Krisper Chicken Burger Meal and ₹149 Thalaiva meal, digital kiosk rollout, and own delivery growth. Pizza Hut improvement driven by new product innovations (Extra Spicy pizzas, Baked Chicken Wings), improved dine-in experience, and competitive value offers. Sri Lanka performance affected by margin pressure despite revenue growth.

Financial Highlights

Q2 FY27 Performance:

Restaurant Sales: ₹8,853 Mn, up 20% YoY (₹7,401 Mn in Q2 FY26)
Adj. EBITDA: ₹624 Mn, up 39% YoY (₹450 Mn in Q2 FY26)
Adj. EBITDA Margin: 7.1%, up 100 bps YoY (6.1% in Q2 FY26)
EBITDA: ₹1,286 Mn, up 21% YoY (₹1,062 Mn in Q2 FY26)
EBITDA Margin: 14.5%, up 20 bps YoY (14.3% in Q2 FY26)
Adj. PBT before exceptional items: ₹120 Mn (vs. -₹43 Mn in Q2 FY26)
PBT before exceptional items: -₹6 Mn (vs. -₹166 Mn in Q2 FY26)

6M FY27 Performance:

Restaurant Sales: ₹17,736 Mn, up 17% YoY (₹15,149 Mn in 6M FY26)
Adj. EBITDA: ₹1,373 Mn, up 38% YoY (₹998 Mn in 6M FY26)
Adj. EBITDA Margin: 7.7%, up 110 bps YoY (6.6% in 6M FY26)
EBITDA: ₹2,692 Mn, up 23% YoY (₹2,196 Mn in 6M FY26)
EBITDA Margin: 15.2%, up 70 bps YoY (14.5% in 6M FY26)
Adj. PBT before exceptional items: ₹393 Mn, up 883% YoY (₹40 Mn in 6M FY26)
PBT before exceptional items: ₹156 Mn (vs. -₹184 Mn in 6M FY26)

Full Year FY26 Reference:

Restaurant Sales: ₹31,159 Mn
Adj. EBITDA: ₹2,382 Mn
Adj. EBITDA Margin: 7.6%
EBITDA: ₹4,804 Mn
EBITDA Margin: 15.4%
Adj. PBT before exceptional items: ₹361 Mn
PBT before exceptional items: -₹133 Mn

Drivers of financial performance:

Higher revenue growth across all brands, operational efficiencies, and focus on smaller format restaurants contributing to improved profitability.

Key Risks:

Not explicitly disclosed in the presentation.

Geographical Revenue Split

Not explicitly broken down by geography in the presentation. The company operates across India, Sri Lanka, and Maldives with segment-wise performance provided.

Balance Sheet Snapshot

Not provided in the presentation.

Capex & Cash Flow Health