Sapphire Foods Q4 FY26 Earnings Call Transcript Released
Sapphire Foods India Limited reported Q4 FY26 revenue of ₹7.9 billion, up 11% YoY, with KFC revenue up 15%. Consolidated restaurant EBITDA grew 21% to ₹125 crore. The company added 19 KFC and 5 Pizza Hut outlets. Management highlighted strong SSSG driven by new consumer strategies and innovations. FY27 capex is expected to be similar to FY26.
The announcement details strong financial results, strategic initiatives for growth, and future outlook, which are material for investors and stakeholders.
The company reported strong financial performance in Q4 FY26, with significant revenue growth, improved EBITDA, and successful new consumer recruitment strategies, indicating positive momentum.
Sapphire Foods India Limited has released the transcript of its earnings call held on April 28, 2026, pertaining to the financial results for the quarter and year ended March 31, 2026.
The company reported its best quarter in the last 12 quarters for Q4 FY26, with revenue of ₹7.9 billion, an 11% year-on-year growth. KFC revenue grew by 15%, marking its highest growth in eight quarters, while Pizza Hut India revenue declined by 6%. Sri Lanka operations saw a 15% revenue increase in LKR. The company added 19 KFC restaurants and two Pizza Huts in India, along with three Pizza Huts in Sri Lanka, bringing the total restaurant count to 1,052.
Consolidated restaurant EBITDA grew by 21% year-on-year, reaching a margin of 13%. Adjusted EBITDA was ₹61 crore, a 20% year-on-year increase, with a consolidated adjusted EBITDA margin of 7.7%. Exceptional items included ₹6.2 crore for Labour Code changes and ₹6.6 crore for merger-related costs.
For the full year, revenue grew by 8%. KFC saw an 11% growth with restaurant EBITDA at 16.3%. Pizza Hut revenue declined by 7% for the year, with restaurant EBITDA at negative 3.3%. Sri Lanka's business grew 16% in LKR terms with restaurant EBITDA at 14.9%.
The management highlighted a two-pronged consumer recruitment strategy for KFC, focusing on advertising and an entry-level burger meal, which has driven same-store sales growth (SSSG). Innovations like 'Dunked' and 'KFC ShaWOWrma' were also introduced. Digital kiosks have been implemented in 73% of restaurants.
The company reported that the dine-in and takeaway channel mix remained stable at 57% for KFC, supported by value campaigns. Despite challenges like LPG availability and inflationary pressures, the company managed operations effectively, with zero closures for KFC and minimal impact on Pizza Hut.
Price hikes of approximately 1.5-2% for KFC and around 2% for Pizza Hut in April were implemented. The company is confident in maintaining or improving restaurant EBITDA margins, provided SSSG remains positive. Future capex is expected to be similar to FY26, with components including new store openings, refurbishments, and renewal fees.
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