Sapphire Foods Q3 FY26 Results: Revenue Up 7% to ₹811.2 Crore, KFC Drives Profitability
Sapphire Foods reported Q3 FY26 revenue of ₹811.2 crore, up 7% YoY. KFC revenue grew 11% with an 18.8% EBITDA margin. Pizza Hut India revenue declined 11%. Sri Lanka revenue grew 15% in LKR. Total restaurants reached 1028 with 31 net additions in the quarter.
The results indicate moderate growth and profitability improvements in key segments, but also highlight challenges in others like Pizza Hut India. The expansion of the restaurant network is positive, but the decline in some key metrics warrants a medium impact assessment.
The results show mixed performance with revenue growth driven by KFC and Sri Lanka, but a decline in Pizza Hut India's revenue and a drop in consolidated Adjusted EBITDA. While there's an improvement in profitability compared to earlier quarters, the overall financial picture is neutral.
Sapphire Foods India Limited announced its financial results for the quarter and nine months ended December 31, 2025. The company reported a consolidated revenue of ₹811.2 crore (₹8112 Mn), marking a 7% year-on-year growth. The performance in Q3 FY26 showed significant improvement in profitability, primarily driven by the KFC brand.
KFC India's revenue grew by 11%, with a same-store sales growth (SSSG) of 1% and a healthy Restaurant EBITDA margin of 18.8%. The company is piloting a new ₹99 Krisper Chicken Burger Meal and launched a mass media advertising campaign in January 2026 to attract new customers. However, Pizza Hut India's revenue declined by 11%, with SSSG dropping by 12% and a negative Restaurant EBITDA margin of 3.1%. Despite this, Pizza Hut Tamil Nadu continues to show strong performance.
The Sri Lanka business demonstrated robust growth, with revenue up by 15% in LKR and SSSG at 11% (LKR). Restaurant EBITDA for Sri Lanka was 16.7%, though it saw a 110 bps YoY drop due to increased minimum wages and cyclone-related costs.
In Q3 FY26, Sapphire Foods added 27 KFC restaurants and 1 Pizza Hut in India, along with 3 Pizza Hut restaurants in Sri Lanka, bringing the total restaurant count to 1028 as of December 31, 2025. Consolidated Restaurant EBITDA grew by 5% YoY to ₹136 crore (₹1360 Mn) with a margin of 15.0%. Consolidated Adjusted EBITDA was ₹77.4 crore (₹774 Mn), a 5% YoY decline, with a margin of 9.5%. Exceptional items, including one-time impacts from labor code changes and merger-related costs, affected the Profit Before Tax (PBT).
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