Sapphire Foods India reported mixed Q4FY26 results with a net loss of ₹12.6 crore compared to a profit of ₹2 crore in the same quarter last year. According to reports from CNBC TV18 and The Hindu BusinessLine, the company's bottom line was significantly impacted by a one-time loss of ₹12.7 crore and a sharp decline in other income to ₹5 crore from ₹13 crore year-on-year. The company also faced exceptional items of ₹12.8 crore in Q4, relating to labour code changes and ESOP modification costs tied to the announced merger with Devyani International.
Despite the loss, the company demonstrated strong operational performance with revenue growing 11.4% year-on-year to ₹792.2 crore from ₹711.3 crore in the previous year. As reported by CNBC TV18, EBITDA rose 17.2% to ₹124.4 crore, while margins improved to 15.7% from 14.9%, indicating better cost control and operating leverage. For the full year FY26, the company reported revenue of ₹3,115.9 crore, up 8% 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% to ₹238.2 crore, with margins compressing 150 basis points to 7.6%.
According to CNBC TV18 reports, KFC emerged as the primary growth driver with revenues growing 15%, marking the highest growth in eight quarters. The brand achieved same-store sales growth (SSSG) of 4%, or 6% excluding the Chaitra Navratri impact, representing the best performance in 14 quarters. Restaurant EBITDA margin improved 110 basis points to 16.8%, 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. However, Pizza Hut India continued to face challenges with revenue declining 6% to ₹117.4 crore, SSSG down 7%, and restaurant EBITDA margin worsening to -6.0%, down 140 basis points year-on-year.
The Sri Lanka business maintained resilience, delivering its sixth consecutive quarter of double-digit same-store sales growth at 11% in local currency terms, with restaurant sales up 15% to LKR 422.1 crore. This performance demonstrates the company's ability to navigate macro challenges in the international market. The Sri Lanka operations continue to be a key growth driver for the company's international expansion strategy.
During Q4FY26, Sapphire Foods expanded its footprint by adding 19 KFC outlets and five Pizza Hut restaurants across India and Sri Lanka, bringing its total restaurant count to 1,052 as of March-end. As reported by CNBC TV18, shares of Sapphire Foods were trading at ₹173.82, down 1.2% on the NSE following the results announcement. According to The Hindu BusinessLine, the stock traded at ₹174.50 on NSE, down 0.81% on the day and is down nearly 46% over the past year, reflecting investor concerns about the company's profitability challenges despite strong operational metrics.
