Sapphire Foods India, the operator of KFC and Pizza Hut restaurants in India, has returned to profit in the first quarter of the current financial year, helped by double-digit growth in revenue. The company posted consolidated net profit, attributable to equity holders of the parent, of Rs 14.04 crore, compared with Rs 1.78 crore loss in Q1FY26.
The company’s net loss in Q4FY26 stood at Rs 12.60 crore. The financial results of the company revealed that the revenue from operations rose to Rs 890.96 crore in Q1FY27, marking a 15 per cent year-on-year uptick, best in last 15 quarters. The growth was led by positive same stores sales growth (SSSG) across all brand verticals.
Consolidated adjusted earnings before interest, taxes, depreciation and amortisation (Ebitda) rose Rs 74.9 crore, up by 37 per cent year-on-year (YoY) and consolidated adjusted Ebitda margin was up by 130 basis points to 8.4 per cent. The company said that the consolidated Ebitda was Rs 140.6 crore.
The company added 16 KFC restaurants, 5 Pizza Hut outlets in India and 1 in Sri Lanka. Sapphire Foods total restaurant count was 1,074 as on 30 June 2026. Sapphire KFC delivered strong revenue growth of 17 per cent with SSSG at 5 per cent. On the positive side, the company saw gross margin improvement, increase in dine-in and take away mix and operating leverage because of positive SSSG.
Dine-In and take away transaction growth has been enabled through continuation of the two-pronged consumer recruitment strategy of disruptive Every Day Value (Rs 99 chicken krisper burger meal) and Abundant Value on select days (BOGO on chicken buckets) backed by marketing investments.
Pizza Hut Posts 3% Revenue Growth
Sapphire Pizza Hut delivered positive SSSG (1 per cent) after five quarters, with dine-in SSSG also positive. Sapphire exclusive territory Tamil Nadu continues to do well basis additional marketing investments and aggressive value dine-in offers to drive transaction growth. Revenue grew by 3 per cent and restaurant Ebitda was negative, impacted significantly by higher energy costs (majorly gas cost).
The company said that Sri Lanka business revenue grew by 14 per cent with SSSG of 9 per cent in LKR. Operating leverage out of positive SSSG has been impacted by minimum wage revision and high energy and food cost inflation arising out of the geopolitical conflict, the company mentioned in an exchange filing. |
