Sapphire Foods Q2 FY27 Revenue Up 20%, EBITDA Jumps 39%

Type of Event: The document contains the transcript of the Q2 FY27 Earnings Conference Call.
Date and Time: The call was held on Thursday, 22nd October 2026. A specific time was not mentioned in the transcript.
Purpose: The purpose was to discuss the company's business performance and financial results for the quarter and half year ended 30th September 2026.
Earnings Announcement Timing: The call was held after the earnings announcement, as it is a discussion of the already declared results.
Management Participants: The following management representatives participated:
Mr. Sanjay Purohit – Whole Time Director and Group Chief Executive Officer
Mr. Vijay Jain – Executive Director and Chief Financial Officer
Mr. Kaushik Vankadkar – Head of Investor Relations
Availability of Materials: The presentation deck was referenced as being uploaded prior to the call. The full earnings call transcript is available on the company's website at https://www.sapphirefoods.in/investors-relation/financials under the 'FY 2026-27 Quarter 2' section.
UPSI Statement: The transcript itself is a record of what was discussed and does not contain a forward-looking compliance statement regarding UPSI within this specific document.

The management discussed the following key financial and operational metrics for Q2 FY27:

Consolidated Performance:

Revenue: INR 885 crores, up 20% Year-on-Year (YoY).
Restaurant EBITDA: Up 21% YoY. Margin at 11.5%, up 20 basis points.
Adjusted EBITDA: INR 62.4 crores, up 39% YoY. Margin at 7.1%, up 100 basis points.
EBITDA (Post Ind AS): INR 128.6 crores. Margin at 14.5%, up 21% YoY.
Adjusted PBT: INR 12 crores (1.4% margin).
PBT (Post Ind AS): INR -0.6 crores (-0.1% margin).
Store Additions: 16 new stores added (15 KFC, 1 Pizza Hut in Sri Lanka). Total restaurant count stood at 1,086 as of 30th September 2026.
Cash Balance: Approximately INR 250 crores.

Brand-wise Performance:

KFC India:
SSSG of 14%. Adjusted for the timing shift of Navratri (from Q2 last year to Q3 this year), growth was close to double-digit.
Overall revenue growth of 26%.
Gross Margin: 67.7% (up 50 bps YoY).
Restaurant EBITDA Margin: 14.5% (up 70 bps YoY).
Dine-in & Takeaway (DITA) mix improved to 57% of sales.
Pizza Hut India:
SSSG of 5% (highest in 7 quarters). Same-Store Transaction Growth (SSTG) was double-digit.
Overall revenue growth of 7%.
Gross Margin: 76.3% (up 190 bps YoY).
Restaurant EBITDA Margin: -2.8% (impacted by high energy inflation).
Delivery mix was 52% of sales.
Sri Lanka:
SSSG of 5% (LKR terms).
Overall revenue growth of 9% (LKR terms).
Restaurant EBITDA Margin: 12.5% (impacted by energy and wage inflation).

Forward-Looking Statements & Strategy:

Management stated that cost inflation (food, wages, utilities) is expected to peak in Q3 FY27.
The company's strategy is prioritizes driving transaction growth through "compelling value offerings" and increased marketing spend over protecting margins in the short term.
Marketing spend is expected to increase by 50-100 bps for KFC and 100-150 bps for Pizza Hut in FY27.
No immediate price hikes are planned due to the focus on growth; the last price increase of 2-3% was taken at the start of FY27.
Pizza Hut store expansion in India is on hold pending CCI approval for better coordination with Devyani International.
The KFC store addition guidance for FY27 remains at 60-80 stores.

This document is the transcript of the earnings conference call, filed as a regulatory disclosure.
The transcript includes the full Q&A session with analysts from firms including Emkay Global, Axis Capital, Goldman Sachs, and others.
Financial data was extensively disclosed and discussed during the call, as detailed in the summary above.
The document was signed and submitted by Mr. Sachin Dudam, Company Secretary and Compliance Officer, on 27th October 2026.