Sapphire Foods India Limited announced its strongest quarterly performance in 12 quarters on Tuesday, reporting a consolidated revenue increase of 11 per cent year-on-year for Q4 FY26, reaching ₹789.8 crore. This growth was significantly propelled by a robust recovery in KFC India.
However, the company reported a consolidated net loss (PAT) of ₹12.6 crore for the quarter, compared to a profit of ₹2 crore in Q4 FY25. For the entire financial year FY26, Sapphire Foods posted a revenue of ₹3,115.9 crore, marking an 8 per cent year-on-year rise, but recorded a net loss of ₹32 crore compared to a profit of ₹16.7 crore in FY25. The adjusted EBITDA for the year also saw a decline of 9 per cent, totaling ₹238.2 crore, with margins compressing by 150 basis points to 7.6 per cent.
KFC India emerged as the standout performer, achieving a 15 per cent revenue growth—its highest in eight quarters—amounting to ₹549.5 crore. The same-store sales growth (SSSG) was reported at 4 per cent, or 6 per cent when excluding the effects of the Chaitra Navratri festivities, representing the best performance in 14 quarters. The restaurant EBITDA margin improved by 110 basis points to 16.8 per cent, supported by gross margin gains and a strategic consumer recruitment approach that included attractive value promotions like the ₹99 Chicken Krisper Burger Meal in northern and western markets and buy-one-get-one bucket deals in the South.
Conversely, Pizza Hut India faced challenges during the quarter, with revenue declining by 6 per cent to ₹117.4 crore and SSSG falling by 7 per cent. The restaurant EBITDA margin for Pizza Hut deteriorated to -6.0 per cent, a drop of 140 basis points year-on-year, resulting in a full-year restaurant EBITDA margin of -3.3 per cent, a further decline of 570 basis points.
The Sri Lanka segment continued to show promise, recording its sixth consecutive quarter of double-digit SSSG at 11 per cent in local currency terms, with restaurant sales increasing by 15 per cent to LKR 422.1 crore.
Exceptional items totaling ₹12.8 crore in Q4, related to labour code changes and ESOP modification costs linked to the planned merger with Devyani International, further impacted the company’s financial results. As of March 31, 2026, the total number of restaurants stood at 1,052.
The company’s stock traded at ₹174.50 on the NSE, reflecting a decrease of 0.81 per cent for the day and a nearly 46 per cent decline over the past year.
Published on April 28, 2026
