KFC operator Sapphire Foods Q2 loss widens to Rs 12.78 crore on Navratri impact

KFC and Pizza Hut operator Sapphire Foods India Ltd reported a wider consolidated loss of Rs 12.78 crore in the July–September quarter (Q2 FY26), compared with a loss of Rs 6.23 crore in the corresponding quarter last year.

In the previous quarter (Q1 FY26), the company had posted a loss of Rs 1.73 crore.

Revenue from operations rose 6.7% year-on-year to Rs 742.4 crore, up from Rs 695 crore in Q2 FY25. However, adjusted EBITDA declined 24% YoY to Rs 45 crore, with margins contracting to 6.1%, primarily impacted by the Navratri season.

According to the company’s stock exchange filing, KFC’s revenue grew 7% (10% excluding Navratri impact), while Pizza Hut India’s revenue declined 6% during the quarter.

Sapphire Foods reports Q1 loss of Rs 17 million; Pizza Hut drag offsets KFC gains

Sapphire Foods added 19 KFC outlets, 2 Pizza Hut stores in India, and 1 Pizza Hut and 1 Taco Bell outlet in Sri Lanka, taking the total restaurant count to 997 as of September 30, 2025.

KFC India’s same-store sales growth (SSSG) was flat before Navratri (till September 21) but declined 3% for the full quarter. Pizza Hut’s SSSG fell 8%.

In terms of channel mix, delivery accounted for 45% of KFC India’s sales, followed by 35% dine-in and 20% takeaway. KFC’s restaurant EBITDA margin dropped 270 basis points YoY to 13.8%, compared with 16.5% in Q2 FY25.

For Pizza Hut, delivery contributed 50% of sales, dine-in 34%, and takeaway 16%. The brand’s EBITDA margin turned negative at -1.8%, versus 4.1% positive in the same period last year.

KFC, Pizza Hut operator Sapphire Foods spent ₹1,300 cr on advertising in FY25