KFC SSSG (ex-Navratri)
6%
+6pp YoY
Highest in 14 quarters, driven by new consumer recruitment strategy.
SAPPHIREFOODSINDIA
Consumer
14 Apr 2026
Sapphire Foods India Ltd — Q4 FY26
Sapphire Foods delivered a strong Q4 FY26, with consolidated revenue of ₹790 crore (+11% YoY) and adjusted EBITDA of ₹61 crore (+20% YoY).
✓ Verified against BSE filing
2-Min Summary
Sapphire Foods delivered a strong Q4 FY26, with consolidated revenue of ₹790 crore (+11% YoY) and adjusted EBITDA of ₹61 crore (+20% YoY). KFC was the standout, posting 15% revenue growth and 4% SSSG (6% ex-Navratri), its best in 14 quarters, driven by a two-pronged value strategy: a ₹99 burger meal in north/west and BOGO offers in south. Pizza Hut India remained weak with -7% SSSG, but Sri Lanka continued its strong run with 11% SSSG and 15% revenue growth. Management expressed confidence that the KFC strategy is sustainable and that margins have bottomed, with April trends similar to Q4. Key risk: LPG cost inflation could impact EBITDA by 30-50 bps if not managed.
Key Numbers
KFC Revenue Growth
15%
+15% YoY
Highest in 8 quarters, supported by 19 new store additions.
Pizza Hut India SSSG
-7%
-7pp YoY
Continues to be challenging; Tamil Nadu outperforms with double-digit SSSG.
Sri Lanka SSSG
11%
+11pp YoY
Sixth consecutive quarter of double-digit SSSG; strong brand momentum.
Management Guidance
KFC value strategy rolled out to all stores except Tamil Nadu
The 99-rupee burger meal is now a permanent value layer across all KFC stores except Tamil Nadu, driving new consumer recruitment.
growthCapex for FY27 similar to FY26 at ~₹320 crore
Management expects capex spend in FY27 to be similar to FY26, including new store openings, refurbishments, and renewal fees.
capexMerger with Devyani International expected to complete by end of FY27
The merger process is on track for completion by end of this financial year, pending SEBI and NCLT approvals.
otherSri Lanka store expansion to accelerate to high single-digit or low double-digit openings
Given strong SSSG and margin profile, store openings in Sri Lanka could accelerate to high single-digit or low double-digit per year for next 2-3 years.
expansionKey Risks
LPG cost inflation impacting EBITDA by 30-50 bps
LPG prices have increased 25-40%, which could impact EBITDA by 30-50 basis points if not offset by price hikes or efficiency.
medium · management_commentaryVendor partner support may not continue, impacting gross margin 50-70 bps
The 99-rupee burger meal is currently supported by vendor partners; if support is withdrawn, gross margin could be impacted by 50-70 bps.
medium · analyst_questionPizza Hut India turnaround remains uncertain
Pizza Hut India SSSG was -7% and restaurant EBITDA margin declined; management's strategy is still unproven outside Tamil Nadu.
high · data_observationSri Lanka macro volatility could disrupt operations
Sri Lanka faces ongoing LPG and fuel shortages; while April has started well, the situation remains fluid and could impact demand.
medium · management_commentaryNotable Quotes
This is not a promotion. This is a permanent value layer that we are building over north and west.
The confidence does not come from the low base. It comes from the strategy which is right now working at a ground which has been now in operation for last 4 months or so.
We have been quite cautious of expanding from 150 stores to 220 now to 400 plus stores. So I think that the traction at the ground gives us the confidence.