Sapphire Foods India Limited has informed the Exchange regarding a press release dated July 23, 2025, titled "Press Release".
SAPPHIRE · price
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Awaiting price reaction for this filing.
Sapphire Foods reported Q1 FY26 revenue of ₹7,748 Mn, up 8% YoY, with total restaurant count reaching 974 after adding 8 KFC, 2 Pizza Hut India, and 1 Pizza Hut Sri Lanka outlets. However, profitability weakened sharply: consolidated Restaurant EBITDA fell 13% YoY with margins contracting 290 bps to 12.2%, Adj. EBITDA dropped 22% to ₹548 Mn (7.1% margin), and the company slipped to a marginal consolidated loss of ₹17 Mn. KFC India posted flat same-store sales growth with restaurant-level margins down 310 bps to 15.7% on operating deleverage and higher delivery mix. Pizza Hut India continued to struggle with revenue down 5% and restaurant EBITDA in the red at -2.5% (down 710 bps), though management noted break-even levels excluding marketing spends. Sri Lanka remained a bright spot with double-digit same-store growth, but margins were hit by minimum wage hikes.
The sharp margin compression across all three businesses—particularly the steep 710 bps fall in Pizza Hut profitability—signals near-term earnings pressure and could weigh on the stock despite revenue growth. Investors should watch for management's ability to revive Pizza Hut and stabilize KFC margins in coming quarters.