Sapphire Foods India LimitedQ2 FY27 Results & Financial Update
Sapphire Foods India Limited: Q2 FY27 consolidated results and company financials – revenue ₹888.03 Cr, PAT ₹-1.51 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 Q2 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
During the second quarter of fiscal 2027, Sapphire Foods recorded consolidated revenue from operations of INR 888.03 crore, reflecting a marginal contraction compared to the preceding quarter's INR 890.96 crore.
Bottom-line performance for Q2 FY27 reflected a net loss (PAT) of INR 1.51 crore, moving downward from a net profit of INR 14.02 crore reported in Q1 FY27.
Profit before tax (PBT) for the quarter stood at a negative INR 1.91 crore, compared to a positive PBT of INR 16.17 crore in the previous quarter.
Operating cost pressures persisted during the period, with depreciation expenses rising to INR 101.33 crore and finance costs edging up to INR 33.11 crore.
s in the investor presentation, consolidated restaurant sales reached INR 885.33 crore, representing a 20% year-on-year increase compared to Q2 FY26, driven by robust performance in the KFC India segment.
The company's total restaurant count expanded to 1,086 outlets by the end of September 2026, supported by the addition of 15 new KFC restaurants and one Pizza Hut outlet in Sri Lanka during the quarter.
Management attributed KFC's strong momentum to a two-pronged consumer recruitment strategy featuring disruptive everyday value pricing and targeted marketing investments.
01 · Business model
What does Sapphire Foods India do?
Sapphire Foods India Limited operates as a leading franchise partner for major international quick-service restaurant (QSR) brands, primarily KFC and Pizza Hut, across the Indian subcontinent, alongside Taco Bell operations in Sri Lanka.
The company manages a vast restaurant network spanning high-traffic and high-visibility metropolitan areas and urban centers in India, supplemented by regional operations in Sri Lanka.
Its commercial model relies on driving customer footfalls and delivery volumes through tiered value promotions, strategic menu introductions, and aggressive digital integration across ordering channels.
Revenue generation is anchored in restaurant sales across its owned brand outlets, supported by digital ordering apps, aggregators, dine-in infrastructure, and take-away counters.
02 · Historical context
What shaped the business before this quarter
Sapphire Foods commenced operations in September 2015 through the acquisition of approximately 270 KFC and Pizza Hut stores across India and Sri Lanka backed by private equity firms.
03 · Financial snapshot
Current quarter vs the available comparable
| Metric | Q2 FY27 | Previous quarter |
|---|---|---|
| Revenue from operations | ₹888.03 Cr | ₹890.96 Cr |
| Total income | ₹894.97 Cr | ₹896.63 Cr |
| Profit before tax | ₹-1.91 Cr | ₹16.17 Cr |
| Profit after tax | ₹-1.51 Cr | ₹14.02 Cr |
| EPS | ₹-0.05 | ₹0.44 |
04 · Why it moved
Why the quarter looked the way it did
What drove revenue
KFC India delivered a 26% year-on-year growth in restaurant sales with a strong same-store sales growth (SSSG) of 14%, bolstered by dine-in and takeaway transaction volumes.
Pizza Hut India recorded a 7% year-on-year revenue growth alongside an SSSG of 5%, supported by aggressive value promotions such as the Rs 99 four-course meal.
The Sri Lankan business registered a 9% revenue growth in local currency terms (LKR) with a 5% SSSG.
What drove margins
Consolidated gross margins improved by 50 basis points year-on-year to 68.5% in Q2 FY27, aided by menu optimization and supply chain efficiencies.
Restaurant EBITDA margins faced headwinds in specific segments, with Pizza Hut restaurant EBITDA dropping by 100 basis points year-on-year to negative 2.8% due to higher energy costs.
05 · Demand, customers & order book
Where demand is coming from
Growth was propelled by disruptive everyday value (EDV) campaigns, including the Rs 99 Chicken Krisper Burger Meal and regional adaptations such as the Rs 149 Thalaiva Meal in Tamil Nadu.
KFC digital app downloads exceeded 75 million with 2.4 million monthly active users, while Pizza Hut recorded over 29 million app downloads.
06 · Segments, products & geography
Which parts of the business are doing the work
Segments and products
KFC restaurant count reached 606 stores as of September 30, 2026, supported by 15 net additions during the quarter.
Pizza Hut restaurant count stood at 342 stores across India at the end of the quarter.
Sri Lankan operations comprised 127 Pizza Hut outlets and 11 Taco Bell units, bringing total regional presence to 138 stores.
07 · Capacity, projects & execution
What is being built, commissioned or delivered
Capacity, production and utilisation
Total store count across all brands reached 1,086 outlets by the end of Q2 FY27 following net additions during the period.
08 · Strategy & new businesses
How the company is trying to change its growth mix
Introduced new product lines including KFC Shawowrma, Double Chicken Dynamite, and Pizza Hut Triple Spice Pizzas to drive customer frequency.
Rolled out digital kiosks across more than 80% of the KFC store estate to enhance customer experience and streamline checkout speeds.
09 · Reported developments
What changed operationally
Delivered the highest quarterly revenue growth rate (20% YoY) and adjusted EBITDA growth (39% YoY) since the COVID period across the last 16 quarters.
10 · Pressure points & risks
What is not going smoothly
Persistent energy cost inflation weighed on Pizza Hut restaurant profitability, resulting in a negative restaurant EBITDA margin of 2.8% for the brand.
11 · Items worth noticing
The line items that can distort a quick read
The consolidated financial statements reflect exceptional items amounting to INR 13.27 crore during the quarter.
12 · Cash flow & balance sheet
Profit is one thing. Cash and funding tell another part of the story.
Capital allocation & funding
Consolidated balance sheet disclosures show borrowings of INR 35.88 crore as of September 30, 2026, alongside lease liabilities totaling INR 1,480.99 crore.
13 · Beyond the numbers
What changed beyond the numbers
Reported update
Operational Excellence Ratings
Maintained average customer ratings above 4.0 across major delivery aggregators including Swiggy and Zomato, as well as Google reviews.
14 · Previous-quarter changes
What changed since the previous quarter
Net profit transitioned from a positive INR 14.02 crore in Q1 FY27 to a net loss of INR 1.51 crore in Q2 FY27.
15 · Key Q&A
The quarter, answered directly
What does Sapphire Foods India do?
Sapphire Foods India Limited operates as a leading franchise partner for major international quick-service restaurant (QSR) brands, primarily KFC and Pizza Hut, across the Indian subcontinent, alongside Taco Bell operations in Sri Lanka.
What is the clearest takeaway from Q2 FY27?
During the second quarter of fiscal 2027, Sapphire Foods recorded consolidated revenue from operations of INR 888.03 crore, reflecting a marginal contraction compared to the preceding quarter's INR 890.96 crore.
What drove revenue or demand?
KFC India delivered a 26% year-on-year growth in restaurant sales with a strong same-store sales growth (SSSG) of 14%, bolstered by dine-in and takeaway transaction volumes.
What mattered most for margins or profitability?
Consolidated gross margins improved by 50 basis points year-on-year to 68.5% in Q2 FY27, aided by menu optimization and supply chain efficiencies.
What changed operationally beyond the headline numbers?
Total store count across all brands reached 1,086 outlets by the end of Q2 FY27 following net additions during the period.
What are the main pressure points disclosed for the quarter?
Persistent energy cost inflation weighed on Pizza Hut restaurant profitability, resulting in a negative restaurant EBITDA margin of 2.8% for the brand.
16 · Scenario calculator
Earnings sensitivity: what if growth and margins change?
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17 · Next filing checkpoints
What the next disclosure can confirm or change
- 01
Store Rollout Execution: Track quarterly store addition paces across KFC and Pizza Hut formats against the stated annual guidance of 60 to 80 store additions.
- 02
Margin Trajectory in Pizza Hut: Monitor the effectiveness of value promotions and cost-control initiatives in reversing negative restaurant-level EBITDA margins in the Pizza Hut segment.
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