Sapphire Foods Achieves 37% Adj. EBITDA Growth in Q1 FY27 Amid Market Headwinds

Sapphire Foods Achieves 37% Adj. EBITDA Growth in Q1 FY27 Amid Market Headwinds​

Sapphire Foods India Limited reported strong performance for the first quarter of fiscal year 2027 (Q1 FY27), marked by robust revenue growth and improved profitability across its global operations. The company successfully expanded its restaurant footprint while navigating inflationary pressures across all verticals, including KFC, Pizza Hut India, and Sri Lanka.

Consolidated results showed a 15% year-over-year (YoY) increase in Restaurant Sales, reaching ₹8,882 Mn. Adjusted EBITDA grew by 37% YoY, standing at ₹749 Mn, resulting in an adjusted EBITDA margin of 8.4%, a significant rise of 130 basis points (bps).

The company added a total of 22 restaurants during the quarter, expanding its total restaurant count to 1,074 as of June 30, 2026, including additions across KFC and Pizza Hut India and Sri Lanka.

Q1 FY27 Consolidated Financial Highlights​

Consolidated financial performance metrics for Q1 FY27 showed improvement in profitability compared to the previous year, despite operational complexities noted in specific segments.

Brand Wise Performance Overview​

The performance of the different brand verticals showed varied trends, driven by targeted marketing efforts and localized market conditions.

KFC India Business Performance​

Sapphire KFC demonstrated very strong revenue growth at 17% for Q1 FY27, achieving a Rest. EBITDA margin of 16.9%, up 120 bps YoY. The brand's performance was attributed to gross margin improvement, increased Dine-In and Take Away mix, and positive SSSG.

The company sustained its two pronged consumer recruitment strategy focusing on disruptive Every Day Value offers, such as the ₹99 Chicken Krisper Burger Meal, and Abundant Value promotions like BOGO on Chicken Buckets, supported by marketing investments. Operational focus areas include implementing Digital Kiosks across over 75% of restaurants, ensuring a frictionless consumer experience, and expanding through new restaurant openings in cities like Bhopal, Mohali, Mumbai, and Coimbatore.

Pizza Hut India Business Performance​

Pizza Hut delivered positive SSSG (+1%) after five quarters, with the Dine-In SSSG also positive. The exclusive territory of Tamil Nadu continues to perform well due to additional marketing investments and aggressive value Dine-In offers, leading revenue growth of 3%. Despite this regional strength, Rest. EBITDA registered at a negative 3.6%, significantly impacted by higher energy costs (primarily Gas cost).

To drive transaction growth, the brand introduced several promotional activities, including a 4 Course meal starting at ₹159/-, Unlimited Pizza Friday, and Buy 1 Get 3 Free promotions. The brand also focused on digitalization, reaching over 29 Mn+ total app downloads and maintaining over 0.8 Mn+ Monthly Active Users.

Sri Lanka Business Performance​

The Sri Lanka business saw revenue growth of 14% in LKR, achieving a SSSG of 9%. Rest. EBITDA came at 12.0%, recording a decline of 70 bps YoY. The operating leverage achieved through positive SSSG was challenged by minimum wage revision and high energy and food cost inflation stemming from the geopolitical conflict.

The company added nine restaurants in Sri Lanka, with operational focus areas including launching Grand Dipper offers and maintaining brand presence via specialized promotions like "Big Bites Weekend Vibes."

SAPPHIRE Stock Price Movement​

As of 1:27 PM, shares of Sapphire Foods India Limited shed 0.73%, trading at ₹178.65 as investors watch active market flows develop. The equity has seen 2.88 million shares changing hands during current trading activity.