Sapphire Foods India Limited reported its strongest quarterly performance in 12 quarters on Tuesday, with Q4 FY26 consolidated revenue rising 11 per cent year-on-year to ₹789.8 crore, driven by a sharp recovery at KFC India.

Despite the operational uptick, the company remained loss-making, posting a consolidated net loss (PAT) of ₹12.6 crore for the quarter against a profit of ₹2 crore in Q4 FY25.

For the full year FY26, the company reported revenue of ₹3,115.9 crore, up 8 per cent YoY, but swung to a net loss of ₹32 crore compared to a profit of ₹16.7 crore in FY25. Adjusted EBITDA for the year declined 9 per cent to ₹238.2 crore, with margins compressing 150 basis points to 7.6 per cent.

KFC India was the clear outperformer. Quarterly revenue grew 15 per cent — the highest in eight quarters — to ₹549.5 crore, while same-store sales growth (SSSG) came in at 4 per cent, or 6 per cent excluding the Chaitra Navratri impact, the best in 14 quarters.

Restaurant EBITDA margin improved 110 basis points to 16.8 per cent, aided by gross margin gains and a two-pronged consumer recruitment strategy deploying aggressive value offers such as the ₹99 Chicken Krisper Burger Meal in northern and western markets and buy-one-get-one bucket deals in the South.

Pizza Hut India continued to be a drag. Quarterly revenue fell 6 per cent to ₹117.4 crore, SSSG declined 7 per cent, and restaurant EBITDA margin worsened to -6.0 per cent, down 140 basis points YoY. For the full year, the brand’s restaurant EBITDA margin stood at -3.3 per cent, a deterioration of 570 basis points.

The Sri Lanka business delivered its sixth consecutive quarter of double-digit SSSG at 11 per cent in local currency terms, with restaurant sales up 15 per cent to LKR 422.1 crore.

Exceptional items of ₹12.8 crorein Q4 — relating to labour code changes and ESOP modification costs tied to the announced merger with Devyani International — further weighed on the bottom line. Total restaurant count stood at 1,052 as of March 31, 2026.

The stock traded at ₹174.50 on NSE, down 0.81 per cent on the day, and is down nearly 46 per cent over the past year.

Published on April 28, 2026