Q2 2026 Sapphire Foods India Ltd Earnings Call Transcript
Key Points
- KFC revenue grew by 7%, with potential for double-digit growth excluding the Navaratri impact.
- Sri Lanka operations showed strong performance with an 18% growth in LKR terms, maintaining the number one QSR position.
- Sapphire Foods India Ltd (BOM:543397) added 19 KFC restaurants and 2 Pizza Huts in India, expanding their footprint.
- The company inaugurated its 1,000th restaurant, marking a significant milestone in its expansion journey.
- Positive transaction growth for KFC, driven by successful marketing campaigns like 'Taste the Epic'.
- Pizza Hut revenue declined by 6%, indicating challenges in certain markets.
- Consolidated restaurant EBITDA declined by 12% year on year, with margins down by 240 basis points.
- Adjusted EBITDA decreased by 24% year on year, reflecting financial pressures.
- Consolidated PAT was a loss of INR12.8 crores, highlighting profitability challenges.
- The dine-in mix for KFC has been declining, impacting overall margins.
Ladies and gentlemen, good day and welcome to the Sapphire Foods Limited Q2 FY26 earnings call. (Operator instructions) Please note that this conference is being recorded.
I now have the conference over to Mr. Sanjay Purohit. Thank you and over to you, sir.
Good afternoon everybody. Welcome to the quarter 2 FY25, 26 financial performance presentation. Our quarter has been a reasonable quarter for us. And the reason why I say reasonable is one, KFC revenue grew by 7%. But if I exclude the impact of Navaratri, Navaratri was entirely in this quarter this year, whereas last year it was in quarter 3.
And therefore if on a like for like basis actually we would have grown double-digits, even in this quarter. Pizza Hut revenue declined by 6%. However, importantly, in Tamil Nadu, which is a Sapphire exclusive territory, we grew double-digit revenue. I think it just proves the Pizza Hut's Sapphire strategy and offers a clear hypothesis for why this brand can
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