SAPPHIREBSESapphire Foods India LtdMediumNeutral
Announced Tue, 5 May · 13:54 IST

Sapphire Foods India Limited has informed the Exchange about Transcript

Mgmt Guided Margin ImprovementInvestor Communications View source PDF

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Price reaction · full curve 14 horizons · vs prior close
-3.0%1-day move
₹193.00
prior close
₹184.92
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AI summary

Sapphire Foods reported its best quarter in 12 quarters with Q4 revenue of INR 7.9 billion, up 11% YoY. KFC delivered 15% revenue growth (highest in 8 quarters) with 4% SSSG (6% ex-Navratri), while Pizza Hut India declined 6%. Sri Lanka grew 15% in LKR with double-digit SSSG for 6 consecutive quarters. Consolidated restaurant EBITDA margin improved 100 bps to 13%. The company opened 73 KFC and 16 Pizza Hut restaurants during FY26, taking total count to 1,052. Management highlighted that their new consumer recruitment strategy (INR99 meal offer in North/West, BOGO in South) has started working, with April trends continuing similarly. The Devyani merger is on track for completion by end of FY27.

Likely market impact

KFC's turnaround with 15% growth and margin recovery bodes well for the stock. However, Pizza Hut's continued decline (restaurant EBITDA at -3.3%) and LPG cost inflation (25-40% increase) remain concerns. The merger with Devyani could unlock synergies but adds integration risk.