Q1 2027 Sapphire Foods India Ltd Earnings Call Transcript
Key Points
- Sapphire Foods India Ltd (BOM:543397) reported a 15% revenue growth in Q1 FY27, marking the best performance in the last 11 quarters.
- The company achieved a 32% adjusted EBITDA growth, the highest in the last 15 quarters.
- KFC India delivered a 5% same-store sales growth (SSSG) and a 17% system growth, driven by strong dine-in and takeaway contributions.
- The company added 16 new KFC restaurants and 5 Pizza Hut outlets in India, expanding its total restaurant count to 1,074.
- Gross margin improved by 160 basis points due to lower discounts and a 2% price increase during the quarter.
- Pizza Hut India reported only a 1% SSSG after five quarters, indicating slower growth compared to KFC.
- Higher energy costs impacted the restaurant EBITDA for Pizza Hut, resulting in a loss of 3.6%, down by 110 basis points.
- The Sri Lanka business faced profitability challenges due to inflationary pressures, currency depreciation, and increased utility costs.
- Despite the positive SSSG, the demand environment remains similar without significant improvement.
- The company faces challenges in maintaining profitability in Sri Lanka, with normalization expected to be a few quarters away.
Ladies and gentlemen, good day and welcome to Sapphire Foods Q1 FY27 conference call. (Operator Instructions) Please note that this conference has been recorded.
I now hand the conference over to Mr. Sanjay Purohit from Sapphire Foods. Thank you, and over to you, Mr. Sanjay.
Welcome to the Sapphire Foods quarter one FY27 business performance highlights. Let me jump in. You should have the presentation already available with you. Quarter one FY27 was our second consecutive quarter of strong performance, with 15% revenue growth, best in the last 11 quarters, and 32% adjusted EBITDA growth, best in the last 15 quarters. This was led by positive SSSG across all three brand verticals, KFC India, Pizza Hut India, and Sri Lanka businesses.
Our quarter one revenue was INR888 crore, up 15% as I said. We added 16 KFC restaurants, five Pizza Hut in India, one Pizza Hut in Sri Lanka, a total restaurant count was 1,074 as of June 30, 2026. Consolidated restaurant
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