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

Sapphire Foods India Ltd, the operator of KFC, Pizza Hut outlets, posted a consolidated loss of Rs 17.38 million in the June quarter for the fiscal year 2026. The company's posted a profit of Rs 81.86 million in the same quarter last fiscal year.

However, the revenue increased by 7% to Rs 7,748 million in Q1 FY26 year-on-year. Besides, the total expenses of climbed up from Rs 7,117.19 million in Q1 FY25 to Rs 7,854.52 million.

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The consolidated EBITDA of Sapphire Foods declined by 13% YoY, and the margin stood at 12.2%.

The 'Same-Store Sales Growth' (SSSG) of KFC remained flat in Q1, according to the company, but Revenue grew by 11%. In contrast, Pizza Hut revenue declined by 5% YoY, with same-store sales growth plunging 8%.

Overall, the restaurant sales saw an 8% jump YoY to Rs 7,748 million in the June quarter.

The company stated that its Sri Lanka operations continued to deliver strong double-digit same-store sales growth.

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The restaurant sales increased from Rs 1,164 million in Q1 FY26 from Rs 978 million in the corresponding quarter last fiscal--a 19% increase YoY.

Notably, SSSG is a key performance metric in the restaurant industry that tracks revenue growth from existing outlets—those operational for at least a year—while excluding the effect of newly opened stores.

Sapphire Foods added 11 new restaurants in the quarter, including 8 of KFC and 2 Pizza Hut. Currently, it operates 974 food outlets, including, India and Sri Lanka.