Sapphire Foods Reports 11% Revenue Growth in Q4 FY26, Credits Strong Performance from KFC

Sapphire Foods Reports 11% Revenue Growth in Q4 FY26, Credits Strong Performance from KFC​

Sapphire Foods India Limited reported strong performance in the fourth quarter of fiscal year 2026 (Q4 FY26), which the company stated was its best quarter in the last 12 quarters, driven by robust consumer recruitment in its KFC segment. The company recorded revenue of ₹ 7898 Mn for Q4 FY26, marking 11% year-over-year (YoY) growth.

In total, Sapphire Foods reported the addition of 19 KFC restaurants and 2 Pizza Hut locations in India, alongside 3 Pizza Hut locations in Sri Lanka, bringing the total restaurant count to 1,052 as of March 31, 2026.

Financial Summary Highlights​

The financial results for Q4 FY26 and FY26 show significant shifts across profitability metrics. The company’s Consolidated Rest. EBITDA grew by 21% YoY, achieving a margin of 13.0%. Consolidated Adj. EBITDA was ₹ 610 Mn, growing 20% YoY, with a corresponding margin of 7.7%.

The summary table below details the key financial figures for the reporting periods:


*Adj. EBITDA and Adj. PBT are before Ind-AS 116 adjustments.

Segment Performance Deep Dive​

KFC India:
The performance of the KFC segment was a major growth driver. KFC's revenue grew by 15%, marking the highest growth in the last eight quarters. The brand's SSSG (Same Store Sales Growth) at 4% (6% excluding Chaitra Navratri) was the highest in the last 14 quarters. KFC delivered a Rest. EBITDA margin of 16.8%, improving by 110 bps YoY, attributed to Gross Margin improvement and operating leverage. The company deployed a two pronged consumer recruitment strategy, utilizing ₹ 99 Chicken Krisper Burger Meal in evolving chicken markets (North & West) and offering disruptive abundant value in developed markets (South).

Pizza Hut India:
Pizza Hut India's performance showed a decline in Q4 FY26, with revenue falling by 6%. The segment reported a 7% decline in SSSG and a negative Rest. EBITDA of 6.0%, representing a 140 bps YoY drop.

Sri Lanka Business:
The Sri Lanka operations performed strongly, delivering the sixth consecutive quarter of double-digit SSSG (11% LKR) despite inflationary challenges related to fuel and LPG. The segment achieved a Rest. EBITDA of 14.6%, representing a 20 bps YoY increase, alongside a 15% YoY growth in LKR terms.

Full Year Performance FY26​

For the full fiscal year 2026, Sapphire Foods posted an overall revenue growth of 8%.

Key year-end highlights included:

• KFC: Revenue grew by 11% to ₹ 21,136 Mn, with Restaurant EBITDA of 16.3%. The segment opened 73 restaurants during the year, bringing the total to 575 restaurants.
• Pizza Hut India: Revenue declined by 7% (revenue of ₹ 5,065), reporting a Restaurant EBITDA of -3.3%. This segment opened 7 restaurants, reaching a total of 341 restaurants.
• Sri Lanka: The business grew by 16% (revenue of LKR 17,340), and opened 9 restaurants, reaching a total of 136 restaurants.

Sapphire Foods noted that the strong performance of KFC, supported by its two-pronged consumer recruitment strategy and the planned merger with Devyani International, is expected to future-proof the business's growth trajectory.

SAPPHIRE Stock Price Movement​

As of 2:44 PM, Sapphire Foods India Limited shares are dropping by 0.94% in live trading, currently trading at ₹174.28. The stock has seen significant movement, with 930,356 shares traded so far in the session.