Sapphire Foods Q3FY26: Revenue up 7% to ₹811.2 Cr, KFC drives profitability
Sapphire Foods reported Q3 FY26 revenue of ₹811.2 crore, up 7% YoY. The company added 31 net new restaurants, reaching a total of 1028. KFC's performance improved profitability with an 18.8% EBITDA margin, while Pizza Hut India saw a revenue decline. Sri Lanka business revenue grew 15% in LKR.
The results show revenue growth and improved profitability metrics, which are material for investors. However, the decline in Pizza Hut India's revenue and a dip in consolidated Adjusted EBITDA moderate the impact to medium.
The company reported revenue growth and improved profitability, especially driven by the KFC segment, despite some challenges in Pizza Hut India. Expansion in restaurant count and positive performance in Sri Lanka contribute to a positive sentiment.
Sapphire Foods India Limited announced its financial results for the quarter and nine months ended December 31, 2025, reporting a revenue of ₹811.2 crore (₹8112 Mn), a 7% increase year-on-year. The company expanded its footprint by adding 27 KFC restaurants and 1 Pizza Hut in India, along with 3 Pizza Hut outlets in Sri Lanka, bringing the total restaurant count to 1028 as of December 31, 2025.
Profitability saw improvement, particularly driven by KFC, which reported a Restaurant EBITDA of 18.8%. KFC's revenue grew by 11%, while Pizza Hut India's revenue declined by 11%. However, Pizza Hut Tamil Nadu continued to show strong performance. The Sri Lanka business demonstrated robust growth with a revenue increase of 15% in LKR terms.
Consolidated Restaurant EBITDA grew by 5% year-on-year to ₹136 crore (₹1,360 Mn), with a margin of 15.0%. Consolidated Adjusted EBITDA was ₹77.4 crore (₹774 Mn), a 5% decline year-on-year, with a margin of 9.5%. The company also reported consolidated PBT before exceptional items of ₹23.8 crore (₹238 Mn) and a consolidated PBT of ₹-3.4 crore (₹-34 Mn). Exceptional items included ₹8 crore (₹80 Mn) for labor code changes and ₹3.1 crore (₹31 Mn) for merger-related costs.
KFC India's Same-Store Sales Growth (SSSG) was 1% for the quarter, with a healthy Restaurant EBITDA margin of 18.8%. The company is piloting a ₹99 Krisper Chicken Burger Meal to attract new customers. Pizza Hut India's SSSG declined by 12%, with a negative Restaurant EBITDA of 3.1%. Sri Lanka's business achieved an SSSG of 11% in LKR terms and a Restaurant EBITDA of 16.7%.
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Sapphire Foods India Limited filed this with the NSE as a statutory disclosure, categorised under quarterly results. It is a primary document, not a recommendation, and the desk marks it medium impact: worth reading, rarely worth acting on by itself.
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