Sapphire Foods Q2 FY27 Results: Net Loss Falls To ₹1.5 Crore As Revenue Rises 20% On Strong KFC Sales
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Sapphire Foods India reported a narrower quarterly loss as higher restaurant sales and improved operating performance lifted its September-quarter results. KFC India led growth, while Pizza Hut continued to face energy-cost pressures. The company also expanded its restaurant network, although it remained loss-making.
Sapphire Foods India reported an improved performance for the September quarter on Thursday, 22 October, as growth across its restaurant business helped reduce losses. The operator of KFC and Pizza Hut outlets said its latest results reflected stronger trading momentum, with revenue and adjusted operating earnings recording their strongest growth in 16 quarters.
The improvement was led by KFC India, where value-focused promotions and higher customer transactions supported sales. Pizza Hut India also recorded positive same-store sales growth, although higher energy expenses continued to weigh on its restaurant-level profitability.
Despite the improvement in operating performance, Sapphire Foods remained loss-making at the net level. Its results highlight the difference in performance between its two principal brands, with KFC providing stronger momentum while Pizza Hut continued to face cost pressures.
Sapphire Foods Q2 FY27 Results: Financial Highlights
Particulars | Q2 FY27 | Q2 FY26 | Year-on-year change |
|---|---|---|---|
Revenue | ₹888 crore | ₹742 crore | +20% |
Net loss | ₹1.5 crore | ₹12.8 crore | Loss narrowed |
Earnings before interest, tax, depreciation and amortisation (EBITDA) | ₹128.6 crore | ₹106.2 crore | +21% |
EBITDA margin | 14.5% | 14.3% | +20 basis points |
Adjusted EBITDA | ₹62.4 crore | ₹45 crore | +39% |
Adjusted EBITDA margin | 7.1% | 6.1% | +100 basis points |
Sapphire Foods Share Price Recovers After Q2 Results
Sapphire Foods shares climbed 2% to an intraday high of ₹197.80 following the earnings announcement before paring their gains. At 03:12 pm the stock was trading at ₹196.00, up 1.57% on the National Stock Exchange (NSE).
The recovery came against a weaker recent trend. The shares had fallen 18.5% over the preceding month and were down 26.4% so far in 2026, although they had gained 9.5% over six months.
KFC Leads Growth; Pizza Hut Remains Under Pressure
KFC India recorded 26% revenue growth, while same-store sales growth (SSSG) reached 14%. Higher transaction volumes across dine-in and takeaway channels helped drive the gains, supported by value-led offers.
Pizza Hut India delivered more modest revenue growth of 7%. Yet SSSG climbed to 5%, its strongest result in seven quarters. Profitability remained a concern, however, with the restaurant-level EBITDA margin slipping to minus 2.8% as higher energy costs weighed on performance.
Sri Lanka also posted growth. Revenue rose 9% in local-currency terms, and same-store sales remained positive.
Sapphire Foods Expands Restaurant Network
The company added 15 KFC outlets and one Pizza Hut restaurant in Sri Lanka during the quarter. Its total network reached 1,086 restaurants as of 30 September 2026.
Expansion accompanied stronger sales, but the pressure on Pizza Hut underlines the challenge of converting revenue growth into consistent profitability across the business. KFC remained the principal growth driver during the quarter, while energy costs continued to weigh on the performance of the pizza chain.
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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.
At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.
When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.
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