Press Release
SAPPHIRE · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Sapphire Foods reported Q4 FY26 revenue of ₹7,898 million, up 11% YoY, marking its best quarter in 12 quarters for same-store sales growth (SSSG) and adjusted EBITDA growth. KFC drove the outperformance with 15% revenue growth and SSSG of 4% (6% ex Navratri), the highest in 14 quarters, with restaurant EBITDA margin expanding 110 bps to 16.8%. However, Pizza Hut India continued to struggle with 7% SSSG decline and deeply negative restaurant EBITDA of -6.0%, down 140 bps YoY. For full year FY26, total revenue grew 8% but adjusted EBITDA declined 9% to ₹2,382 million with margin compression of 150 bps. The company added 24 restaurants in Q4 taking total count to 1,052. Exceptional items of ₹128 million in Q4 included ₹62 million labour code impact and ₹66 million merger-related costs. The company highlighted a merger announcement with Devyani International for unified brand strategy.
KFC's strong recovery in Q4 is a positive signal for the stock, but Pizza Hut's persistent underperformance and FY26 margin contraction (Adj. EBITDA down 150 bps) are concerning. The Devyani merger announcement could be a strategic positive for Pizza Hut turnaround but adds near-term execution uncertainty.