Sapphire Foods Q1 FY27 Results: Revenue Rises 15%, Adjusted EBITDA Surges 37%, Adds 22 New Stores

BY ADMIN • FILED 24 Jul 2026, 10:15 PM

Sapphire Foods India Limited reported a strong financial performance for the quarter ended June 30, 2026 (Q1 FY27), delivering its highest quarterly revenue growth in the last 11 quarters and strongest Adjusted EBITDA growth in the past 15 quarters. The impressive performance was driven by positive same-store sales growth (SSSG) across all major business segments, improved operating leverage, and continued expansion of its restaurant network.

Sapphire Foods Q1 FY27 Financial Highlights

The company posted healthy growth across key financial metrics during the quarter:

Consolidated Revenue: ₹8,882 million, up 15% year-on-year.
Adjusted EBITDA: ₹749 million, registering a robust 37% YoY growth.
Adjusted EBITDA Margin: Expanded by 130 basis points to 8.4%.
Consolidated EBITDA: ₹1,406 million, reflecting a 24% YoY increase, with an EBITDA margin of 15.8%.
Profit Before Tax (PBT): ₹162 million, with margin improving by 200 basis points year-on-year.
Adjusted PBT: ₹273 million, translating into an adjusted PBT margin of 3.1%.

Restaurant Network Crosses 1,070 Stores

Sapphire Foods continued its expansion strategy by adding 22 net new restaurants during the quarter, taking its total network to 1,074 stores.

The new additions included:

16 KFC restaurants in India.
5 Pizza Hut restaurants in India.
1 Pizza Hut restaurant in Sri Lanka.

The expansion reflects the company’s continued focus on strengthening its presence across key markets.

Brand-Wise Performance

KFC India

KFC remained the primary growth driver during the quarter.

Key highlights include:

Revenue growth of 17% YoY.
Same Store Sales Growth (SSSG): 5%.
Restaurant EBITDA margin expanded to 16.9%, improving by 120 basis points year-on-year.

The improvement was supported by stronger gross margins, an improved dine-in and takeaway sales mix, and disciplined operational execution despite higher energy costs.

Pizza Hut India

Pizza Hut India returned to positive same-store sales growth after several challenging quarters.

Highlights include:

Revenue growth of 3% YoY.
Positive SSSG of 1%, marking the first positive comparable sales growth after five consecutive quarters.
Restaurant EBITDA margin of -3.6%, impacted primarily by elevated gas and energy expenses.

While profitability remained under pressure, the return to positive comparable sales indicates improving customer demand.

Sri Lanka Operations

The Sri Lankan business continued to deliver healthy growth.

Key performance indicators:

Revenue increased 14% in local currency (LKR).
Same Store Sales Growth (SSSG): 9%.
Restaurant EBITDA margin: 12.0%.

The business benefited from improving consumer demand and effective operational management.

Customer Value Strategy Supports Growth

Management attributed the strong operating performance to successful customer acquisition initiatives and attractive value offerings introduced during the quarter.

Popular promotional campaigns, including the ₹99 Chicken Crisper Burger Meal, helped increase customer traffic and transaction volumes across brands. These initiatives, combined with targeted marketing campaigns and operating leverage, contributed to improved profitability despite inflationary pressures on energy and operating costs.