SAPPHIRENSESapphire Foods India LimitedMediumNeutral
Announced Tue, 5 May · 13:53 IST

Sapphire Foods India Limited has informed the Exchange about Transcript

Mgmt Guided Margin ImprovementInvestor Communications View source PDF

SAPPHIRE · price

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Price reaction · full curve 14 horizons · vs prior close
-3.0%1-day move
₹193.00
prior close
₹185.01
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AI summary

Sapphire Foods delivered its best quarter in 12 quarters with Q4 revenue of INR7.9 billion (up 11% YoY). KFC posted 15% revenue growth—highest in 8 quarters—with SSSG of 4% (6% ex-Navratri impact, highest in 14 quarters), while Pizza Hut India declined 6%. Sri Lanka grew 15% in LKR terms with 11% SSSG. Consolidated restaurant EBITDA margin improved 100 bps to 13%. Management attributed the KFC turnaround to a two-pronged consumer recruitment strategy (INR99 entry meal in North/West + BOGO offers in South), now rolled out across all stores except Tamil Nadu. LPG challenges were largely managed with zero KFC closures in March. The company confirmed the merger with Devyani International is on track for completion by end of FY27.

Likely market impact

The strong KFC recovery and margin improvement signal operational leverage is returning. However, Pizza Hut India continues to be a drag with restaurant EBITDA at negative 3.3%, down 570 bps YoY. The stock could see positive re-rating if KFC's SSSG momentum sustains.