Q1 2026 Sapphire Foods India Ltd Earnings Call Transcript
Key Points
- Sapphire Foods India Ltd (BOM:543397) reported a revenue of INR775 crores, marking an 8% growth over the previous year.
- The company expanded its restaurant network by adding eight KFC restaurants in India, two Pizza Hut outlets in India, and one Pizza Hut in Sri Lanka, bringing the total restaurant count to 974.
- KFC's transaction growth was positive, driven by the Epic Saver campaign, which offered value deals that increased customer transactions.
- In Sri Lanka, the company achieved a robust double-digit same-store sales growth (SSSG) of 12% and system growth of 15%, despite facing challenges with employee cost inflation.
- Sapphire Foods India Ltd's KFC outlet in Punjab received the Indian Green Buildings Council Platinum award, marking it as the first QSR restaurant in India to achieve this recognition.
- Consolidated restaurant EBITDA declined by 13% year-on-year, with margins dropping by 290 basis points to 12.2%.
- Adjusted EBITDA fell by 22% year-on-year, with the adjusted EBITDA margin at 7.1%.
- Pizza Hut experienced a negative 5% overall revenue growth and an 8% decline in same-store sales growth (SSSG).
- The company faced a negative consolidated PAT of INR2 crores, although the adjusted PAT was positive at INR6 crores.
- Gross margins dropped by 90 basis points due to investments in value offers and promotions, impacting overall profitability.
Ladies and gentlemen, good day, and welcome to Sapphire Foods India Limited conference call. (Operator Instructions) Please note that this conference is being recorded.
I now hand over the conference to Mr. Sanjay Purohit. Thank you, and over to you, sir.
Everybody, welcome to the Sapphire Foods quarter one FY26 financial highlights presentation. I'm joined by Vijay Jain, our Executive Director and CFO. As always, the two of us will play a tag team and take you through our results for quarter one. Let me just, jump in straight away. We delivered a revenue of INR775 crores, which was 8% growth over last year.
In this quarter, we added eight KFC restaurants, two Pizza Hut in India, and one Pizza Hut in Sri Lanka. Our total restaurant count is INR974 at the end of the June quarter.
Our consolidated restaurant EBITDA declined by 13% year-on-year. Margin was 12.2%, which is 290 basis points down. Our adjusted EBITDA was INR55 crores. It declined
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