Sapphire Foods India delivered a remarkable financial turnaround in the June 2026 quarter, posting a consolidated net profit of ₹14.04 crore compared to a net loss of ₹1.8 crore in the corresponding quarter of the previous year. According to reports from Business Standard, this represents a complete reversal in the company's profitability trajectory, marking a significant improvement in operational performance. Notably, this profitability improvement came after the company had reported a loss of ₹12.62 crore in the March 2026 quarter, demonstrating the company's ability to recover from quarterly challenges. Unlike the preceding quarter, which included exceptional charges of ₹12.80 crore, Q1 FY27 did not have any exceptional items, contributing to the improved bottom line performance.
The company demonstrated strong revenue growth with sales rising 15% to ₹891 crore in Q1 FY27, marking its fastest growth in nearly three years, as reported by Business Standard. This compares to ₹776.83 crore recorded in the same quarter of the previous financial year, indicating robust demand for the company's products and services during the quarter. Additionally, revenue from operations increased to ₹891 crore from ₹792.22 crore in Q4 FY26, showing consistent quarter-over-quarter growth momentum. Total income stood at ₹896.63 crore during the quarter, reflecting the company's diversified revenue streams. The growth was aided by strong same-store sales growth (SSSG) across brands, with KFC India posting 5% SSSG and Sri Lanka delivering a robust 9% SSSG, as reported by Anand Rathi.
Operating profit margin (OPM) improved to 15.69% in the June 2026 quarter from 14.53% in the corresponding quarter of the previous year, as reported by Business Standard. The company's PBDT (Profit Before Depreciation and Tax) increased 26% to ₹113.53 crore from ₹90.11 crore year-on-year, while PBT (Profit Before Tax) stood at ₹16.17 crore compared to a loss of ₹1.84 crore in Q1 FY26. Basic and diluted earnings per share came in at ₹0.44, compared with a loss per share of ₹0.06 in Q1 FY26. The management attributed the growth mainly to internal execution and value-led initiatives, particularly the Chicken Krisper Meal, while continuing to prioritise transaction growth. The company implemented modest price hikes of ~2% across KFC and Pizza Hut, focused on relatively inelastic menu items.
The strong quarterly performance has translated into significant market gains, with Sapphire Foods India shares jumping over 65% on Monday, July 27, as reported by NDTV Profit. The stock opened at ₹181 against a previous close of ₹179.12 and hit an intraday high of ₹191.90 on the NSE, demonstrating strong investor confidence in the company's turnaround story. The stock last traded 2.625 higher at ₹183.81 on the NSE, outperforming the 0.76% rise in the Nifty 50 benchmark. However, the stock remains down 30% on a year-to-date basis and 45% in the last one year, indicating previous challenges despite the recent positive momentum. Anand Rathi has maintained a BUY rating on the stock with a target price of ₹260, valuing it at 12x FY28e EV/E, down from the earlier target of ₹308.
The company demonstrated strong expansion momentum, adding 22 net stores in Q1 FY27, as reported by Anand Rathi. Pizza Hut reported 1% SSSG and the company is likely to benefit from franchise alignment (post-merger with Devyani). The management remains cautiously optimistic on KFC's momentum, while Pizza Hut is expected to benefit from continued brand investments and new global parent providing refreshed strategy. Anand Rathi remains optimistic of sustained growth momentum and has slightly increased revenue/EBITDA estimates for FY27/28e. The brokerage maintains its BUY rating with a lower target price of ₹260, down from the earlier target of ₹308, valuing the stock at 12x FY28e EV/E compared to 15x FY28E earlier.
