SAPPHIRE FOODS INDIA LTD

Operates KFC and Pizza Hut restaurants in India and Pizza Hut restaurants in Sri Lanka under franchise agreements with Yum! Brands. The chain stood at 1,074 restaurants at the end of Q1 FY27, after 22 net additions in the quarter (16 KFC, 5 Pizza Hut, 1 Sri Lanka). KFC India is the largest vertical, delivering 5% same-store sales growth (SSSG), 17% system growth, and a restaurant EBITDA margin of 16.9% in Q1 FY27. Pizza Hut India posted 1% SSSG — its first positive reading in five quarters — but its restaurant EBITDA margin was negative at -3.6% on energy costs. Sri Lanka delivered 9% SSSG and 14% revenue growth in LKR, though profitability was pressured by LKR depreciation, wage inflation, and fuel/utility costs. The P&L cost stack is led by food and packaging materials at 31.8% of revenue, followed by other operating expenses at 39.3%, employee costs at 13.7%, and depreciation at 12.5%; capex was 10.2% of revenue. Expansion is concentrated in KFC, with guidance of 60-80 new KFC stores per year, while Pizza Hut India additions are near zero pending a unified franchise strategy post-CCI approval. The company has a pending merger with Devyani International at a 177:100 share swap ratio, awaiting CCI clearance and NCLT approval.