Sapphire Foods Reports Mixed Q2 FY26 Results: Revenue Up 7%, Profitability Declines
Sapphire Foods reported Q2 FY26 revenue of ₹740.1 crore, up 7% YoY, driven by KFC and Sri Lanka. However, profitability declined significantly, with a consolidated net loss of ₹12.8 crore.
The mixed results, characterized by revenue growth but a substantial drop in profitability and a net loss, present a medium impact. The operational expansion and positive performance in specific segments (KFC, Sri Lanka, PH Tamil Nadu) provide some counterbalance to the overall negative financial performance.
While revenue grew, the significant decline in key profitability metrics like Consolidated Restaurant EBITDA (-12% YoY), Adjusted EBITDA (-24% YoY), and a reported Consolidated PAT loss of ₹-12.8 crore indicate a challenging quarter for the company.
Sapphire Foods India Limited announced its financial and operational performance for the quarter and half year ended 30th September 2025. Key highlights include: * Revenue Growth: The company delivered a revenue of ₹7,401 Mn (₹740.1 crore) in Q2 FY26, marking a 7% Year-on-Year (YoY) growth. * Brand Performance: KFC revenue grew by 7% (10% excluding Navratri impact), while Pizza Hut India revenue declined by 6%. However, Pizza Hut in Sapphire's exclusive Tamil Nadu territory showed double-digit growth. The Sri Lanka business grew handsomely by 18% in LKR terms. * Profitability Decline: Consolidated Restaurant EBITDA declined by 12% YoY, with a margin of 11.3% (down 240 basis points). Adjusted EBITDA was ₹450 Mn (₹45 crore), a 24% YoY decline, with a margin of 6.1%. Consolidated EBITDA was ₹1,062 Mn (₹106.2 crore), an 8% YoY decline, with a margin of 14.3%. * Net Loss: Consolidated PAT stood at ₹-128 Mn (₹-12.8 crore), and Adjusted PAT at ₹-36 Mn (₹-3.6 crore). * Restaurant Expansion: In Q2 FY26, Sapphire Foods added 19 KFC restaurants and 2 Pizza Hut restaurants in India, along with 1 Pizza Hut and 1 Taco Bell in Sri Lanka. The total restaurant count reached 997 as of 30th September 2025. The company inaugurated its 1000th Sapphire restaurant (a KFC outlet) on 16th October 2025, in Gummidipoondi, Tamil Nadu. * Same-Store Sales Growth (SSSG): KFC SSSG for the quarter was -3% (flat prior to Navratri impact). Pizza Hut SSSG declined by 8%, while Sri Lanka business showed strong double-digit SSSG of 14% (LKR).
What to do with a filing like this
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.
That call is the part a filing cannot make for you. On RealCase, SEBI-registered research analysts and investment advisers read announcements like this one and turn the ones that matter into actions inside their model portfolios: a change in weight, a hold, or nothing at all. You are not left working out which of the roughly 250 filings published each day needs a response. The portfolio you follow is updated when a filing actually warrants it, with the reason written down.
See the model portfoliosA plain-language summary of a public exchange filing by Sapphire Foods India Limited. Read the original for the full detail.