Sapphire Foods India (SAPPHIRE) Q4 2026 earnings summary

Executive summary

• Q4 FY26 marked the best quarter in 12 quarters for SSSG and Adjusted EBITDA growth, driven by strong KFC consumer recruitment and robust Sri Lanka performance despite LPG shortages and inflationary pressures.

• Revenue grew 11% year-over-year to INR 7.9 billion, with KFC up 15% and Pizza Hut India down 6%; Sri Lanka revenue rose 15% in LKR.

• Restaurant count reached 1,052 as of March 31, 2026, with 19 new KFC, 2 Pizza Hut India, and 3 Pizza Hut Sri Lanka openings in Q4.

• Board approved a merger scheme with Devyani International Limited, subject to regulatory approvals, with a share swap ratio of 177:100.

• Audited standalone and consolidated financial results for the quarter and year ended March 31, 2026, were approved, with unmodified opinions from the statutory auditors.

Financial highlights

• Consolidated revenue from operations for FY26 was ₹31,253.17 million, up from ₹28,818.64 million in FY25; Q4 FY26 revenue was ₹7,898 million, up 11% YoY.

• Q4 FY26 Adjusted EBITDA was ₹610 million, up 20% YoY (margin 7.7%); FY26 Adjusted EBITDA was ₹2,382 million, down 9% YoY (margin 7.6%).

• Q4 FY26 EBITDA was ₹1,249 million, up 10% YoY (margin 15.8%); FY26 EBITDA was ₹4,804 million, down 2% YoY (margin 15.4%).

• Consolidated net loss for FY26 was ₹319.54 million, compared to net profit of ₹167.04 million in FY25.

• Exceptional items for FY26 included a ₹142.53 million charge related to new labour codes and merger-related expenses.

Outlook and guidance

• April SSSG trends are similar to Q4, with underlying growth momentum expected to continue into the new fiscal, supported by consumer recruitment strategies and merger synergies.

• No further price hikes planned unless raw material or oil prices rise significantly.

• CapEx for FY27 expected to be similar to FY26, with continued focus on new store openings and refurbishments.

• The company is restructuring employee compensation in line with new labour codes and continues to monitor regulatory developments.

• Merger with Devyani International expected to complete by end of FY27, pending regulatory and shareholder approvals.