Investor Presentation

Sapphire Foods Delivers Strong Q1 FY27 Performance with 15% Revenue Growth and 37% Adjusted EBITDA Increase

NSE

sapphire

BSE

543397

Sapphire Foods India Limited reported its second consecutive quarter of strong operating performance, posting 15% year-on-year revenue growth, the company’s highest quarterly revenue growth in the last 11 quarters, while Adjusted EBITDA increased 37% YoY, marking its strongest EBITDA growth in the last 15 quarters.
Growth was supported by positive Same Store Sales Growth (SSSG) across KFC India, Pizza Hut India, and Sri Lanka, continued restaurant expansion, and improved operating leverage.

PRICE-SENSITIVE TRIGGER

Event: Sapphire Foods released its Press (Investor) Release and Earnings Presentation for the quarter ended 30 June 2026under Regulation 30 of the SEBI (LODR) Regulations.

Type: Investor Presentation

Impact: Positive

Immediate Effect: The company demonstrated broad-based operational improvement with strong revenue growth, expanding profitability, positive same-store sales across all business verticals, and continued outlet expansion, reinforcing confidence in its growth trajectory.

Metrics:

Financial Metrics:

Restaurant Sales (Revenue): ₹888.2 crore, ▲15% YoY
Gross Profit: ₹612.9 crore, ▲17% YoY
Gross Margin: 69.0% (vs 67.6% in Q1 FY26)
Restaurant EBITDA: ₹115.7 crore, ▲23% YoY
Restaurant EBITDA Margin: 13.0% (▲80 bps YoY)
Adjusted EBITDA: ₹74.9 crore, ▲37% YoY
Adjusted EBITDA Margin: 8.4% (▲130 bps YoY)
EBITDA: ₹140.6 crore, ▲24% YoY
EBITDA Margin: 15.8% (▲120 bps YoY)
Adjusted PBT: ₹27.3 crore, ▲229% YoY
Adjusted PBT Margin: 3.1%
PBT: ₹16.2 crore (vs loss in Q1 FY26)
PAT: ₹14.0 crore (vs net loss in Q1 FY26)
PAT Margin: 1.6%

Segment Performance:

KFC India Revenue: ▲17% YoY with 5% SSSG
Pizza Hut India Revenue: ▲3% YoY, positive SSSG after five quarters
Sri Lanka Revenue: ▲14% (LKR basis) with 9% SSSG
Net Restaurant Additions: 22
Total Restaurant Network: 1,074 outlets (591 KFC India, 346 Pizza Hut India, 126 Pizza Hut Sri Lanka and 11 Taco Bell Sri Lanka)

Highlight:

Sapphire Foods recorded its strongest quarterly revenue growth in nearly three years and highest adjusted EBITDA growth in almost four years, while delivering positive same-store sales growth across every operating brand.

What Happened ?

Sapphire Foods delivered another quarter of broad-based growth, driven by stronger customer demand, positive same-store sales growth across all brands, and continued restaurant expansion. During the quarter, the company opened 22 new restaurants, taking its network to 1,074 outlets across India and Sri Lanka. Improved gross margins, favourable sales mix, and operating leverage supported meaningful expansion in profitability despite inflationary pressure on energy costs.

KFC remained the primary growth driver, while Pizza Hut India returned to positive same-store sales growth after five quarters. The Sri Lanka business also continued to post healthy revenue growth despite higher wage and energy costs.

key details

Business & Operational Highlights:

Revenue increased 15% YoY, representing the strongest quarterly growth in the last 11 quarters.
Adjusted EBITDA rose 37% YoY, the highest quarterly EBITDA growth in the last 15 quarters.
Positive same-store sales growth (SSSG) was recorded across KFC India, Pizza Hut India and Sri Lanka.
The company added 22 restaurants during Q1 FY27, including:
- 16 KFC India outlets
- 5 Pizza Hut India outlets
- 1 Pizza Hut Sri Lanka outlet
Total restaurant network expanded to 1,074 outlets.
Gross margin improved to 69.0%, supported by favourable product mix and operating efficiencies.
Restaurant EBITDA margin improved despite higher gas prices.
Consolidated profitability turned positive at the PBT and PAT level compared with losses in the previous year.

brand performance

KFC India:

Revenue grew 17% YoY.
Same-store sales growth stood at 5%.
Restaurant EBITDA margin improved to 16.9%.
Growth was supported by higher dine-in and takeaway transactions, marketing initiatives, and value-focused offerings such as the ₹99 Chicken Krisper Burger Meal and promotional bucket offers.

Pizza Hut India:

Revenue increased 3% YoY.
Delivered positive SSSG after five consecutive quarters.
Tamil Nadu continued to outperform through aggressive dine-in promotions and targeted marketing campaigns.
Restaurant EBITDA margin remained under pressure due to elevated energy costs.

Sri Lanka Business:

Revenue increased 14% in local currency.
Same-store sales growth reached 9%.
Profitability was affected by minimum wage revisions and higher food and energy costs arising from geopolitical disruptions.

Risk Analysis

Summary:

Although operating momentum remains strong, profitability continues to face inflationary pressure from energy costs, wage increases, and food inflation, particularly in the Sri Lanka business.

Key Risks:

Gas and utility costs remain elevated across restaurant operations.
Sri Lanka margins are under pressure due to higher labour and energy expenses.
Pizza Hut India’s profitability remains weaker than KFC despite improvement in same-store sales.
Consumer spending slowdown could affect transaction growth and restaurant-level margins.
Continued expansion requires efficient execution to maintain profitability.

Worst Case:

Persistent cost inflation or weaker consumer demand could reduce restaurant margins, slow same-store sales growth, and impact the pace of earnings improvement despite continued network expansion.

Risk Level: Medium

Company Commentary

According to Sapphire Foods:

Q1 FY27 marked the company’s second consecutive quarter of strong performance.
Revenue growth of 15% was the strongest in the last 11 quarters.
Adjusted EBITDA growth of 37% was the strongest in the last 15 quarters.
Positive same-store sales growth was achieved across KFC India, Pizza Hut India, and Sri Lanka.
Continued investments in value offerings, customer acquisition initiatives, marketing, and restaurant expansion supported overall business performance.

Official Exchange Filing: Sapphire Foods India Limited

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