Sapphire Foods India Q2 FY27 results: net loss narrows to ₹1.51 crore, revenue up 19.6%

How did Sapphire Foods India perform in Q2 FY27?

Sapphire Foods India reported consolidated revenue of ₹888.03 crore in Q2 FY27, up ₹145.59 crore or 19.6% from Q2 FY26. Total income rose 19.1% to ₹894.97 crore. EBITDA increased 24.3% to ₹126.91 crore, while margin improved by 0.5 percentage points to 14.3%. The company reported a net loss of ₹1.51 crore, an improvement of ₹11.28 crore from the year-ago quarter.

Against Q1 FY27, revenue fell 0.3% from ₹890.96 crore to ₹888.03 crore. EBITDA declined 9.2% from ₹139.79 crore to ₹126.91 crore, and margin fell 1.4 percentage points from 15.7% to 14.3%. The company moved from a net profit of ₹14.02 crore to a net loss of ₹1.51 crore, while basic EPS changed from ₹0.44 to -₹0.05.

On a standalone basis, Q2 FY27 revenue was ₹751.27 crore, up 21.9%, while profit before tax was a loss of ₹17.3 crore and profit after tax was a loss of ₹5.7 crore. The reported quarterly figures above are consolidated, and the filing also includes standalone results for the quarter and half year ended 30 September 2026.

What changed in Sapphire Foods India's costs and profit?

Total expenses were ₹895.55 crore in Q2 FY27, up ₹127.29 crore or 16.6% from Q2 FY26. Cost of materials increased ₹42.48 crore to ₹281.85 crore, other expenses rose ₹67.83 crore to ₹363.06 crore, employee cost increased ₹10.45 crore to ₹116.20 crore, depreciation rose ₹4.08 crore to ₹101.33 crore and finance costs increased ₹2.44 crore to ₹33.11 crore.

Other income fell ₹2.30 crore from ₹9.25 crore in Q2 FY26 to ₹6.95 crore in Q2 FY27. The company recorded an exceptional charge of ₹1.33 crore, compared with no exceptional item in the year-ago quarter. A tax credit of ₹0.39 crore compared with a tax credit of ₹3.79 crore in Q2 FY26.

The filing states that inflation was present across cost lines, including food, minimum wages, gas and electricity. Management said higher raw-material and energy costs affected Pizza Hut restaurant profitability, while higher marketing investment accompanied KFC’s growth. The filing also states that KFC value propositions and transaction growth, and Pizza Hut value offers, supported sales growth.

How did the first half of FY27 go?

In H1 FY27, Sapphire Foods India reported consolidated revenue of ₹1,778.99 crore, up ₹259.72 crore or 17.1% from H1 FY26. Total income rose 16.7% to ₹1,791.61 crore. Profit before tax was ₹14.26 crore compared with a loss of ₹18.42 crore in H1 FY26, while PAT was ₹12.51 crore compared with a net loss of ₹14.53 crore.

Basic EPS for H1 FY27 was ₹0.39, compared with -₹0.45 in H1 FY26. The filing presents these as unaudited consolidated results for the half year ended 30 September 2026, alongside the comparative half year ended 30 September 2025.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹3,438.75 crore, compared with ₹3,255.89 crore at 31 March 2026. Total equity rose to ₹1,399.49 crore from ₹1,388.55 crore. Cash and cash equivalents increased to ₹87.74 crore from ₹68.11 crore, while borrowings fell to ₹0.00 crore from ₹5.61 crore.

Inventories were ₹120.61 crore at 30 September 2026, against ₹112.3 crore at 31 March 2026. Trade receivables were ₹43.53 crore compared with ₹34.99 crore, and trade payables were ₹332.71 crore compared with ₹283.63 crore. The filing also shows a net current liability position on the balance sheet, with current liabilities above current assets.

H1 FY27 net cash flow from operating activities was ₹304.99 crore, compared with ₹212.24 crore in H1 FY26. Net cash used in investing activities was ₹180.51 crore, compared with ₹89.47 crore, while net cash used in financing activities was ₹102.25 crore compared with ₹123.73 crore. Capital expenditure was ₹115.66 crore, against ₹118.31 crore in H1 FY26.

How has Sapphire Foods India done over the last 8 quarters?

Revenue reached its highest level in the reported series in Q1 FY27 at ₹890.96 crore, followed by ₹888.03 crore in Q2 FY27. The lowest quarterly revenue shown was ₹711.34 crore in Q4 FY25, and the latest quarter was slightly below the peak. Revenue rose year on year in each of the last eight quarters.

PAT moved from a net loss of ₹12.79 crore in Q2 FY26 to a net profit of ₹14.02 crore in Q1 FY27, before returning to a net loss of ₹1.51 crore in Q2 FY27. EBITDA margin was 15.7% in both Q4 FY26 and Q1 FY27, then eased to 14.3% in the latest quarter from a peak of 17.8% in Q3 FY25.

What else did the company announce?

The company filed the Q2 FY27 investor release and earnings presentation with the NSE on 22 October 2026, alongside the board’s outcome on the financial results. The release said the company added 15 KFC restaurants and one Pizza Hut restaurant in Sri Lanka during the quarter, taking its total restaurant count to 1,086 as of 30 September 2026.

The same-day release reported KFC SSSG of 14% and Pizza Hut India SSSG of 5%. It also stated that Pizza Hut’s restaurant EBITDA margin was negative at 2.8%, which the release attributed to higher energy costs. No dividend, fund-raising or appointment announcement is included in the provided same-day filings.

What did Sapphire Foods India's management say?

Management maintained FY27 guidance for 60-80 KFC store additions and said Pizza Hut calendar-2026 openings would remain neutral. The company expects KFC SSSG in the high single digits for Q2 and Q3 FY27 combined and expects input-cost inflation to peak in Q3 FY27. Marketing spend is planned to increase by 50-100 bps for KFC and 100-150 bps for Pizza Hut in FY27.

Management said it was prioritising traffic and marketing investment ahead of near-term gross-margin protection. CFO Vijay Jain said the company was willing to lose a few basis points in gross margin if higher marketing spend could produce better SSSG. The call also cited food, wage, gas and electricity inflation, weaker discretionary spending and continued Pizza Hut strategy and expansion uncertainty as risks.

Management said KFC had delivered 14% SSSG, while Pizza Hut posted 5% SSSG. It said Pizza Hut store-level profitability remained negative and that the brand could start operating on all cylinders only a couple of quarters after CCI approval. Sri Lanka operations faced wage and energy inflation, while the company remained focused on driving growth.

How did Sapphire Foods India shares react?

Sapphire Foods India’s shares rose 2.6% on the reaction day from the pre-results close of ₹193.00, after moving -0.3% in the first five minutes and 2.3% after 15 minutes. By the next day’s close, the stock was up 1.6% from the pre-results close, and by the fifth session’s close it was up 4.1%.

Earlier results-day reactions were mixed: the stock moved -0.2% on 24 July 2026, -0.1% on 28 April 2026, -1.9% on 6 February 2026 and 0.5% on 17 October 2025. It also moved -0.0% on 23 July 2025, -2.4% on 7 May 2025, 0.1% on 6 February 2025 and 7.3% on 28 October 2024.