Sapphire Foods India LimitedQ1 FY27 Results & Financial Update
Sapphire Foods India Limited: Q1 FY27 consolidated results and company financials – revenue ₹890.96 Cr, PAT ₹14.02 Cr. Explore reported YoY/QoQ movements, margins, business drivers and management commentary. This page does not provide a rating, target price or investment recommendation.
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Quarterly Results AnalysisExplore Sapphire Foods India Q1 FY27 quarterly results and earnings: revenue, profit (PAT), EBITDA, margins, YoY and QoQ growth, order book or business updates where reported, financial performance and management commentary. Reported figures and Nivata calculations are shown separately; no buy, sell or hold recommendation is provided.
Quarter overview
Quarterly earnings analysis
Sapphire Foods India Limited posted consolidated restaurant sales of INR 8,882 million for the quarter ended June 30, 2026, marking a 15% year-on-year increase compared to INR 7,748 million in Q1 FY26. Total consolidated revenue from operations stood at INR 890.96 crore for the quarter.
Reported profit after tax (PAT) for Q1 FY27 reached INR 14.022 crore, supported by total income of INR 896.631 crore and profit before tax (PBT) of INR 16.167 crore. Finance costs for the quarter were recorded at INR 31.931 crore alongside depreciation of INR 97.362 crore.
Reported EBITDA expanded 24% year-on-year to INR 1,406 million in Q1 FY27 from INR 1,134 million in Q1 FY26, with the EBITDA margin improving by 120 basis points to 15.8% from 14.6%. Adjusted EBITDA before Ind-AS 116 adjustments grew 37% year-on-year to INR 749 million.
The KFC India business demonstrated robust growth with restaurant-related revenue rising 17% year-on-year to INR 6,183 million and restaurant EBITDA margin improving by 120 basis points to 16.9%. KFC added 16 net new restaurants during the quarter to reach 591 total units.
Pizza Hut India recorded restaurant-related revenue of INR 1,360 million, representing a 3% year-on-year increase, while posting a restaurant EBITDA margin of -3.6%. The brand added 5 net new restaurants during the quarter, bringing its total count to 346 units.
The Sri Lanka operations delivered restaurant-related revenue of INR 1,349 million, reflecting a 16% increase in INR terms and 14% in LKR terms. Restaurant EBITDA margin in Sri Lanka stood at 12%, down 70 basis points year-on-year, across a network of 137 total outlets after adding 1 net store.
Omni-channel sales mix during the quarter was anchored by delivery at 43%, dine-in at 34%, and takeaway at 23%. Strategic initiatives such as zero-based cost budgeting and digital kiosk deployment across more than 75% of the KFC estate continued to support operational efficiency.
01 · Business model
What does Sapphire Foods India do?
Sapphire Foods India Limited operates as a major franchise partner for Yum Brands, managing KFC, Pizza Hut, and Taco Bell restaurants across India, Sri Lanka, and the Maldives. The company functions as one of the leading international QSR operators in its operating territories.
The operational footprint covers a total network of 1,074 restaurants as of June 30, 2026, comprising 591 KFC units, 472 Pizza Hut units, and 11 Taco Bell units. The restaurant portfolio is strategically distributed across India and international island markets, with strong presence in urban centers.
The revenue model relies on retail food and beverage sales through multiple channels including dine-in, takeaway, and delivery services. Delivery channels have expanded significantly over time, contributing 43% of total sales in Q1 FY27 compared to 21% in FY19.
The company implements an optimized capital allocation strategy focused on smaller-sized omni-channel restaurant footprints, zero-based cost budgeting, and standardized operational benchmarking programs to drive efficiency across its store network.
02 · Historical context
What shaped the business before this quarter
Since FY19, the company transitioned its expansion strategy by reducing average restaurant sizes by approximately 45% for both KFC (from 2,736 sq. ft. to ~1,500 sq. ft.) and Pizza Hut (from 2,427 sq. ft. to ~1,200 sq. ft.).
The delivery channel expanded significantly over prior years, growing from 21% of total revenue in FY19 to 43% by Q1 FY27.
On January 1, 2026, the board of directors of Sapphire Foods and Devyani International approved a scheme of amalgamation, subject to statutory and regulatory approvals.
03 · Financial snapshot
Current-quarter financial snapshot
| Metric | Q1 FY27 |
|---|---|
| Revenue from operations | ₹890.96 Cr |
| Total income | ₹896.63 Cr |
| Profit before tax | ₹16.17 Cr |
| Profit after tax | ₹14.02 Cr |
| EPS | ₹0.44 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
Net addition of 22 restaurants during Q1 FY27 brought the total operating network across India, Sri Lanka, and the Maldives to 1,074 stores.
KFC India delivered restaurant-related revenue of INR 6,183 million, up 17% year-on-year, driven by 16 net store additions and average daily sales per restaurant of INR 118,000.
Sri Lanka operations contributed restaurant-related revenue of INR 1,349 million, reflecting a 16% year-on-year increase in INR terms with average daily sales per restaurant rising to INR 112,000.
Digital ordering adoption and delivery expansion contributed 43% of total revenue mix during the quarter.
What drove margins
Reported EBITDA margin improved by 120 basis points year-on-year to 15.8% in Q1 FY27, while adjusted EBITDA margin (before Ind-AS 116) rose 130 basis points to 8.4%.
Implementation of zero-based cost budgeting and the PACE SETTER store-level cost benchmarking program supported permanent overhead reductions.
KFC India restaurant EBITDA margin expanded by 120 basis points year-on-year to 16.9%.
Pizza Hut India recorded a restaurant EBITDA margin of -3.6%, reflecting a 110 basis point year-on-year compression despite positive dine-in same-store sales growth in selected territories like Tamil Nadu.
05 · Demand, customers & order book
Where demand is coming from
Customer sales channels in Q1 FY27 comprised 43% delivery, 34% dine-in, and 23% takeaway.
Consumer engagement was driven by targeted value propositions including the INR 99 Krisper Chicken Burger meal, Hot & Crispy BOGO offers, and mass media advertising campaigns.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
Total restaurant count reached 591 units following 16 net additions in Q1 FY27. Average daily sales per restaurant stood at INR 118,000, and restaurant EBITDA margin reached 16.9%.
Total restaurant count reached 346 units after 5 net additions during the quarter. Average daily sales per restaurant were INR 44,000, and restaurant EBITDA margin stood at -3.6%.
Total restaurant count reached 137 units with 1 net addition. Average daily sales per restaurant were INR 112,000, and restaurant EBITDA margin was 12.0%.
Geography and market mix
KFC and Pizza Hut operate across states covering 56% of India's GDP, with presence in 10 and 11 states respectively. In 34 cities, the company operates 488 units where both brands are present.
International operations span 137 total restaurants in Sri Lanka, maintaining the position of Sri Lanka's largest international QSR chain.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Total operating restaurants across all brands and geographies reached 1,074 units as of June 30, 2026.
Projects, capex and execution
The company added 22 net new restaurants during Q1 FY27, continuing its disciplined capital allocation toward smaller-format omni-channel stores.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Digital kiosks were deployed across more than 75% of the KFC estate, and smaller store formats (~1,000 to 1,200 sq. ft.) were utilized for Pizza Hut densification.
The board-approved merger scheme with Devyani International continues to progress through statutory and regulatory approval channels.
09 · Reported developments
What changed operationally
Reported EBITDA grew 24% year-on-year to INR 1,406 million with margin expansion of 120 basis points.
KFC India delivered 17% revenue growth and 120 bps margin expansion alongside 16 net store additions.
10 · Pressure points & risks
What is not going smoothly
Pizza Hut India reported negative restaurant EBITDA margin of -3.6% in Q1 FY27, contracting 110 basis points year-on-year.
11 · Beyond the numbers
What changed beyond the numbers
Reported update
Digital Kiosk Deployment
Digital ordering kiosks were rolled out across more than 75% of the KFC restaurant estate to enhance customer experience and operational speed.
Reported update
Brand Innovations
KFC introduced new menu items including Double Chicken Dynamite and KFC Shawowrma, while Pizza Hut launched Crafted Flatzz, baked chicken wings, and masala beverages.
12 · Key Q&A
The quarter, answered directly
What does Sapphire Foods India do?
Sapphire Foods India Limited operates as a major franchise partner for Yum Brands, managing KFC, Pizza Hut, and Taco Bell restaurants across India, Sri Lanka, and the Maldives. The company functions as one of the leading international QSR operators in its operating territories.
What is the clearest takeaway from Q1 FY27?
Sapphire Foods India Limited posted consolidated restaurant sales of INR 8,882 million for the quarter ended June 30, 2026, marking a 15% year-on-year increase compared to INR 7,748 million in Q1 FY26. Total consolidated revenue from operations stood at INR 890.96 crore for the quarter.
What drove revenue or demand?
Net addition of 22 restaurants during Q1 FY27 brought the total operating network across India, Sri Lanka, and the Maldives to 1,074 stores.
What mattered most for margins or profitability?
Reported EBITDA margin improved by 120 basis points year-on-year to 15.8% in Q1 FY27, while adjusted EBITDA margin (before Ind-AS 116) rose 130 basis points to 8.4%.
What changed operationally beyond the headline numbers?
Total operating restaurants across all brands and geographies reached 1,074 units as of June 30, 2026.
What are the main pressure points disclosed for the quarter?
Pizza Hut India reported negative restaurant EBITDA margin of -3.6% in Q1 FY27, contracting 110 basis points year-on-year.
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14 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Store Rollout Execution: Monitor net restaurant additions and capital expenditure deployment across KFC and Pizza Hut brands in subsequent quarters.
- 02
Pizza Hut Turnaround: Track same-store sales growth and margin recovery metrics in the Pizza Hut India segment.
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