KFC operator Sapphire Foods' Q2 loss narrows to Rs 1.5 crore, revenue up 20%; share rise nearly 2%

Sapphire Foods India Ltd, which operates KFC and Pizza Hut restaurants in India and Sri Lanka, reported a narrower net loss of Rs 1.5 crore for the September quarter, while revenue rose 20 percent. Shares of the company recovered from the day's lows to trade 1.7 percent higher at Rs 196.23 per share on the NSE at around 3.15 pm on Thursday. The company had posted a net loss of Rs 12.8 crore in the corresponding quarter of the previous fiscal. Revenue from operations rose to Rs 888 crore in the September quarter from Rs 742 crore a year earlier. In its investor presentation, Sapphire Foods said it recorded its highest quarterly revenue and adjusted EBITDA growth in the past 16 quarters. Same-store sales growth (SSSG) at Sapphire KFC stood at 14 percent, while Sapphire Pizza Hut India recorded growth of 5 percent, it said. The franchisee of US-based Yum Brands added 15 KFC restaurants and one Pizza Hut outlet in Sri Lanka during the quarter, taking its total restaurant count to 1,086 as of September 30, 2026. During the quarter, KFC promoted its 'buy one, get one' offer, while Pizza Hut introduced a limited-period 'sibling meal' comprising two pizzas, two garlic breads and two Pepsi beverages, starting at Rs 299. Restaurant operators have faced higher costs since the onset of the West Asia conflict, partly due to rising utility expenses, while continued spending on discounts has put pressure on margins. Sapphire Foods' total expenses rose 17 percent during the quarter. The company cited inflation in raw material and energy costs, along with higher marketing investments at KFC. In January, Sapphire Foods and Devyani International, which also operates KFC and Pizza Hut outlets, announced a USD 934 million merger deal that would create a franchisee with more than 3,000 restaurants.

KFC operator Sapphire Foods' Q2 loss narrows to Rs 1.5 crore, revenue up 20%; share rise nearly 2%

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