NSE: SAPPHIRE · BSE: 543397
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. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. KFC India, Pizza Hut India, Sri Lanka (Pizza Hut). Asset-heavy, cyclical QSR franchise operator across two brands and two countries
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 1,722 | 2,266 | 2,594 | 2,882 | 3,125 |
| EBITDA (ex other income) | 305 | 428 | 461 | 461 | 450 |
| margin % | 17.7 | 18.9 | 17.8 | 16.0 | 14.4 |
| Owners' profit | 46 | 233 | 53 | 23 | (32) |
| EPS, as reported (₹) | 7.78 | 36.73 | 8.30 | 0.60 | (0.99) |
| ROE % · ROCE % | 4.6 · 7.5 | 18.6 · 9.5 | 3.9 · 7.1 | 1.2 · 5.2 | (2.3) · 3.1 |
| Debt / equity (x) | 0.79 | 0.77 | 0.02 | 0.01 | 0.00 |
| Cash from operations | 395 | 382 | 449 | 508 | 507 |
| Capex | (285) | (384) | (385) | (265) | (320) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 696 | 757 | 711 | 777 | 742 | 814 | 792 | 891 |
| Profit before tax | (6) | 17 | 1 | (2) | (17) | (3) | (15) | 16 |
| Net profit | (6) | 13 | 2 | (2) | (13) | (5) | (13) | 14 |
| EPS (₹) | (0.10) | 0.37 | 0.06 | (0.06) | (0.40) | (0.15) | (0.39) | 0.44 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| JUBILANT FOODWORKS LTD | 28,340 | 65.4 | 11.87 | 15.5 | 18.6 | 8.8 | 23.5 | 20.3 |
| TRAVEL FOOD SERVICES LTD | 14,946 | 31.4 | 10.21 | 20.0 | 30.9 | 33.5 | — | 46.0 |
| DEVYANI INTERNATIONAL LTD | 14,777 | — | 7.84 | 17.9 | (2.3) | (1.1) | — | 17.3 |
| WESTLIFE FOODWORLD LTD | 9,325 | 293.1 | 15.06 | — | 5.2 | — | 21.6 | 13.5 |
| RESTAURANT BRAND ASIA LTD | 6,840 | — | 9.93 | 18.9 | (29.6) | (7.8) | — | 14.6 |
| SAPPHIRE FOODS INDIA LTD ◆ | 6,444 | — | 4.64 | 13.4 | (2.3) | (1.4) | — | 16.3 |
| UNITED FOODBRANDS LIMITED | 2,564 | — | 7.98 | 12.9 | (19.3) | (6.3) | 21.4 | 16.7 |
| SPICE LOUNGE FOOD WORKS LIMITE | 1,413 | 56.3 | 11.49 | 91.8 | 7.9 | 3.9 | — | 13.9 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/B | 4.6 | 8.0 | 4 of 11 | 70% |
| ROCE | (1.4) | 2.4 | 10 of 12 | 18% |
| ROE | (2.3) | 0.3 | 9 of 11 | 20% |
| Debt / Equity | 0.0 | 0.4 | 3 of 10 | 78% |
| EBITDA margin | 16.3 | 17.3 | 8 of 11 | 30% |
| Revenue growth | 14.7 | 16.6 | 10 of 12 | 18% |
| Profit growth | 906.8 | 113.8 | 1 of 11 | 100% |
| Market cap | 6444 | 2564 | 6 of 13 | 58% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 27 Oct 2026 · Q2 FY27 growth accelerates as cost inflation pressures margins | investor communications | medium | — | — |
| 26 Oct 2026 · Sapphire Foods Q2 FY27 sales rise 20% and EBITDA margin improves to 14.5% | investor communications | medium | — | — |
| 23 Oct 2026 · Newspaper publication of September 2026 quarter and half-year results | compliance | minimal | — | — |
| 22 Oct 2026 · Audio recording of Q2 FY27 earnings call available | investor communications | low | — | — |
| 22 Oct 2026 · Q2 FY27 sales up 20%, adjusted EBITDA up 39% | investor communications | medium | — | — |
| 22 Oct 2026 · Sapphire Foods Q2 FY27: Revenue up 20%, Adj EBITDA jumps 39% YoY | compliance | low | — | — |
| 22 Oct 2026 · September 2026 revenue rises, but Sapphire posts a Rs 15.13 million loss | results | high | — | — |
| 16 Oct 2026 · Q2 FY27 earnings call scheduled for 22 Oct 2026 | board shareholder meetings | low | — | — |
| 15 Oct 2026 · Board meeting on 22 Oct 2026 to consider Q2 and H1 FY27 results | results | low | — | — |
| 30 Sept 2026 · ICRA upgrades Sapphire Foods credit rating to A+ from A | credit debt | medium | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.