Sapphire Foods reported an 8% year-on-year increase in revenue, reaching ₹7,748 million for the quarter ended June 30, 2025. The company's total restaurant count stood at 974, including additions of 8 KFC restaurants and 2 Pizza Hut restaurants in India, along with 1 Pizza Hut in Sri Lanka.
| Particulars | Q1 FY26 | Q1 FY25 | Change YoY | FY25 |
|---|---|---|---|---|
| Restaurant Sales | 7,748 | 7,165 | 8% | 28,754 |
| Adj. EBITDA | 548 | 707 | -22% | 2,616 |
| Adj. EBITDA (%) | 7.1% | 9.9% | -280 bps | 9.1% |
| EBITDA | 1,134 | 1,242 | -9% | 4,925 |
| EBITDA (%) | 14.6% | 17.3% | -270 bps | 17.1% |
| Adj. PBT* | 83 | 239 | -65% | 699 |
| Adj. PBT (%) | 1.1% | 3.3% | -220 bps | 2.4% |
| PBT* | -18 | 118 | -116% | 384 |
| PBT (%) | -0.2% | 1.7% | -190 bps | 1.3% |
| Restaurant Additions | 11 | 14 | 91 |
Financial Performance
Consolidated Restaurant EBITDA declined by 13% YoY, with a margin of 12.2%, a decrease of 290 bps. Adjusted EBITDA was ₹548 million, a 22% YoY decrease, with an Adjusted EBITDA Margin of 7.1%. Consolidated EBITDA (₹1,134 million, 14.6%) decreased by 9% YoY (270 bps). The Consolidated PAT stood at -₹17 million (-0.2%), while the Consolidated Adjusted PAT was ₹58 million (0.7%).
Brand Performance
KFC India: Sapphire KFC's Same-Store-Sales-Growth (SSSG) for the quarter was flat, but Same-Store-Transaction-Growth (SSTG) turned low single-digit positive. Restaurant Revenue grew by 11%, but Restaurant EBITDA margin came in at 15.7% (↓310 bps YoY) due to operating deleverage, lower gross margin, and higher delivery mix.Sapphire Pizza Hut: Restaurant Revenue decreased by 5% YoY (SSSG -8% YoY). Restaurant EBITDA was negative at (2.5%), a decrease of 710 bps YoY. Excluding additional marketing investments, Restaurant EBITDA would be at break-even levels. The launch of the “Juicylicious” pizza range in April 2025 received positive consumer feedback. In Tamil Nadu, marketing support resulted in positive SSSG & SSTG.Sri Lanka: Sri Lanka continued to show strong double-digit SSSG (12% LKR) & SSTG growth. Margin leverage was offset by a significant revision in minimum wages, impacting employee costs. Restaurant Sales grew by 15% LKR (19% in terms), and Restaurant EBITDA was 12.7% (↓50 bps YoY).Additional Information
As of June 30, 2025, Sapphire Foods operates 510 KFC and 336 Pizza Hut restaurants in India, along with 118 Pizza Hut and 10 Taco Bell restaurants in Sri Lanka.
