Sapphire Foods posts best revenue growth in four years, stock slides

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SENSEX 73,414.88

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NIFTY 22,670.15

 -141.20

NIFTY 22,670.15

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CRUDEOIL 9,492.00

+ 284.00

CRUDEOIL 9,492.00

+ 284.00

GOLD 144,936.00

 -1,143.00

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The adjusted profit before tax turned positive at ₹120 million against a loss of ₹43 million in Q2 FY26, though reported PBT remained marginally negative at -₹6 million

By Anupama Ghosh

Updated - October 22, 2026 at 01:33 PM.

Sapphire Foods India Limited on Thursday reported its strongest quarterly revenue growth since the Covid era, with consolidated restaurant sales rising 20 per cent year-on-year to ₹8,853 million for the quarter ended September 30, 2026 (Q2 FY27). Adjusted EBITDA surged 39 per cent to ₹624 million, with margins expanding 100 basis points to 7.1 per cent.

The company, which operates KFC, Pizza Hut and Taco Bell outlets across India and Sri Lanka, said it was the best quarter for both revenue and adjusted EBITDA growth in the last 16 quarters. Consolidated EBITDA came in at ₹1,286 million, up 21 per cent YoY, at a margin of 14.5 per cent. The adjusted profit before tax turned positive at ₹120 million against a loss of ₹43 million in Q2 FY26, though reported PBT remained marginally negative at -₹6 million.

KFC India was the standout performer, posting 26 per cent revenue growth — its highest in 16 quarters — driven by a same-store sales growth (SSSG) of 14 per cent and double-digit transaction growth. The brand’s restaurant EBITDA margin improved 70 basis points to 14.5 per cent, despite raw material and energy cost inflation. KFC’s store count rose to 606 from 529 a year earlier.

Pizza Hut India delivered 7 per cent revenue growth with SSSG of 5 per cent, the highest in seven quarters, aided by value offers including a ₹99 four-course meal and buy-one-get-one deals. However, restaurant EBITDA remained in negative territory at -2.8 per cent, worsening by 100 basis points YoY due to elevated energy costs.

The Sri Lanka business grew revenue 9 per cent in local currency terms, with SSSG at 5 per cent. Restaurant EBITDA margin declined 290 basis points to 12.5 per cent, pressured by wage and energy inflation. Total restaurant count stood at 1,086 as of September 30.

Despite the strong operational print, the stock traded lower, down 0.58 per cent at ₹191.85 on the NSE on Thursday afternoon, extending a steep decline — the shares are down nearly 35 per cent over the past year from a 52-week high of ₹310.50.

Published on October 22, 2026

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