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Sapphire Foods
SectorConsumer Services
Sapphire Foods India Limited is a leading Yum franchisee operator in India, Sri Lanka, and Maldives. The company operates KFC, Pizza Hut, and Taco Bell restaurants across these countries. As of March 31, 2023, Sapphire Foods owned and operated 341 KFC and 286 Pizza Hut restaurants in India, 105 Pizza Hut and 9 Taco Bell restaurants in Sri Lanka, and 1 KFC and 1 Pizza Hut in Maldives. The company was incorporated in 2009 and began its franchise operations in 2015 after acquiring about 270 KFC and Pizza Hut restaurants. Sapphire Foods expanded its presence to over 135 cities in India and introduced compact omnichannel restaurants. The company went public in November 2021 with an IPO of Rs 2073 crore. It continues to grow its restaurant portfolio, having opened 164 new outlets in the fiscal year 2022-23.
In the news
Sapphire Foods faces ₹716.74 cr GST demands from Karnataka, Tamil Nadu
India's Burger War Escalates: Coffee Becomes New Growth Engine
Sapphire Foods India posts ₹14.04 cr profit in Q1 FY27
Yum Brands sells Pizza Hut for $2.7B to LongRange Capital
Sapphire Foods Q4FY26: Mixed Brokerage Views on KFC Growth
Sapphire Foods Q4 Loss of ₹12.6 Cr Despite Strong Revenue Growth
LPG crisis hits 430 Morbi ceramic units, industry faces 1-2% revenue decline
Devyani-Sapphire Merger Gets Board Approval, Shares React
Devyani-Sapphire $933M Merger: Strategic Survival Move
The Quarter story
The two most recent quarterly results, compared side-by-side.
Sapphire Foods delivers a strong operational turnaround with rising adjusted profits and steady store expansion, though Pizza Hut India still faces margin pressure.
Adj. PBT grows from ₹83 Cr to ₹273 Cr from Q1 FY26 to Q1 FY27, confirming a strong operational turnaround.
Pizza Hut India Restaurant EBITDA Margin remains negative, shifting from -2.5% to -3.6% from Q1 FY26 to Q1 FY27, indicating ongoing profitability pressure.
KFC India Restaurant Sales grow from ₹5,275 Cr to ₹6,183 Cr from Q1 FY26 to Q1 FY27, driven by higher average daily sales.
Pizza Hut India SSSG stays in negative territory, moving from -8% to -7% from Q1 FY26 to Q4 FY26, signaling weak same-store traffic recovery.
Sri Lanka Restaurant EBITDA Margin improves from 12.7% to 14.6% from Q1 FY26 to Q4 FY26, reflecting resilient unit economics.
Adjusted Profit After Tax swings from ₹58 Cr to -₹44 Cr from Q1 FY26 to Q4 FY26, highlighting bottom-line volatility.
Consolidated Gross Margin climbs from 67.6% to 69.0% from Q1 FY26 to Q1 FY27, showing sustained pricing power.
PAT deteriorates from -₹127.87 Cr to -₹126.21 Cr from Q2 FY26 to Q4 FY26, reflecting persistent net losses.
Restaurant Count expands from 974 to 1,074 from Q1 FY26 to Q1 FY27, supporting long-term revenue scaling.
Other Income declines from ₹62.47 Cr to ₹45.41 Cr from Q1 FY26 to Q4 FY26, reducing ancillary earnings support.
Company insights, generated from the most recent coverage.
At ₹207 the stock is ~33% below its ₹310.50 52-week high but still +30% over six months and -31% over one year — the market has re-rated it from an operational-recovery story back to a deal-and-litigation-risk story.
Stock down 4.42% to ₹207.10 on Sep 29, extending losses to -13% in a week and -10.5% in a month — this is a sustained downtrend, not a one-day reaction to the GST notice.
Maharashtra food regulator suspending a Sapphire-run Pizza Hut outlet licence over missing expiry dates is isolated, but adds regulatory/news-flow risk on top of the tax notice during an already weak QSR tape.