Sapphire Foods India
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Sapphire Foods India (SAPPHIRE) investor relations material

Sapphire Foods India Q3 25/26 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 25/26 earnings summary6 Feb, 2026

Executive summary

  • Q3 FY26 saw improved profitability, led by KFC, with consolidated revenue of INR 8,138.29 million, up 7% year-over-year, and total restaurant count reaching 1,028 as of Dec 31, 2025.

  • KFC India revenue grew 11% YoY, while Pizza Hut India revenue declined 11% YoY; Sri Lanka revenue rose 15% in LKR.

  • Tamil Nadu market for Pizza Hut continues to outperform with double-digit SSSG and EBITDA delta versus other regions.

  • Unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2025, were approved and reviewed by the Board and Audit Committee.

  • Scheme of arrangement for amalgamation with Devyani International Limited approved, subject to regulatory/statutory approvals, with a share swap ratio of 177:100.

Financial highlights

  • Consolidated restaurant sales grew 7% YoY to INR 8,138.29 million in Q3 FY26; India restaurant sales up 6% YoY.

  • Consolidated Adj. EBITDA declined 5% YoY to INR 774 million (margin 9.5%), and EBITDA margin was 16.8%.

  • Adj. PBT before exceptionals was INR 238 million (2.9% margin), down 7% YoY; net loss after tax for Q3 FY26 was INR 48.08 million.

  • Exceptional items for the quarter included INR 80.26 million impact from new labour codes and INR 31.37 million merger-related expenses.

  • Gross margin remained stable at 68.9% in Q3 FY26.

Outlook and guidance

  • KFC innovation pipeline is strong, with new product launches and digital initiatives expected to drive growth.

  • Store expansion guidance remains at 60-80 new stores per year, with Pizza Hut India to maintain cautious expansion and no new stores planned for CY25.

  • Sri Lanka store growth expected to remain high single digit, possibly touching 10%.

  • The company continues to monitor regulatory developments regarding the new labour codes and will adjust accounting as needed.

  • The amalgamation with Devyani International Limited is expected to be effective from April 1, 2026, pending approvals.

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Frequently asked questions

Sapphire Foods India Limited is a quick-service restaurant (QSR) company operating franchisee outlets of global fast-food brands. The company is one of the largest franchisees of KFC, Pizza Hut, and Taco Bell in India, Sri Lanka, and the Maldives. It manages a network of dine-in, takeaway, and delivery outlets. The company is headquartered in Mumbai, India, and its shares are listed on the BSE.

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