Sapphire Foods Q4 loss at Rs 12.62 cr

Sapphire Foods India, a franchisee operator for YUM Brands QSR chains KFC and Pizza Hut, on Tuesday reported a consolidated loss of Rs 12.62 crore in the March quarter of FY26, on a year-on-year basis, due to exceptional items.

Sapphire Foods India, a franchisee operator for YUM Brands' QSR chains KFC and Pizza Hut, on Tuesday reported a consolidated loss of Rs 12.62 crore in the March quarter of FY'26, on a year-on-year basis, due to exceptional items. The company posted a consolidated net profit of Rs 2.02 crore in the January-March quarter a year ago, according to a regulatory filing by Sapphire Foods India, which earlier this year announced plans to merge with rival QSR Chain Devyani International. For the quarter under review, Sapphire Foods reported an exceptional item (net loss) of Rs 12.8 crore in the March quarter, mainly due to the implementation of new Labour Codes and impairment losses. However, its consolidated revenue from operations was up 11.37 per cent to Rs 792.22 crore in the March quarter. It stood at Rs 711.34 crore in the year-ago period, it added. ''Q4 FY26 is our best quarter in the last 12 quarters in terms of SSSG (Same-Store Sales Growth) and EBITDA growth on the back of strong new consumer recruitment by KFC,'' said an earnings statement from Sapphire Foods. In Q4, ''revenue for KFC grew by 15 per cent, which is the highest in the last eight quarters; however, Pizza Hut India revenue declined by 6 per cent. Its Sri Lanka business recorded a revenue growth of 15 per cent in the local currency, it added. In Q4FY26, Sapphire Foods added 19 KFC restaurants, 2 Pizza Hut restaurants in India and 3 Pizza Hut restaurants in Sri Lanka, taking the total restaurant count to 1,052 as on March 31 2026. Sapphire Foods India, which operates in India and Sri Lanka, total expenses increase 11.1 per cent to Rs 799.86 crore in the March quarter. Total consolidated income, which includes other income, was up 10 per cent to Rs 797.18 crore during the period under review. In the entire FY26, Sapphire Foods reported a loss of Rs 31.95 crore. The total consolidated income was at Rs 3,153.36 crore for the financial year ended March 31, 2026, up 8 per cent. In FY26, ''KFC grew by 11 per cent (revenue of Rs 2,113.6 crore) with Restaurant EBITDA of 16.3 per cent down (100 bps) and opened 73 restaurants during the year (575 total restaurants).'' Pizza Hut revenue declined by 7 per cent with a revenue of Rs 506.5 crore and opened 7 restaurants during the year (341 total restaurants). Earlier in January this year, Sapphire Foods India and DIL, the two leading franchise operators of Yum! Brands for its KFC and Pizza Hut brands announced a merger, through a share swap, which will create one of the largest chains in India with over 3,000 stores operated by the combined entity. ''.... The merger announcement with Devyani International, which will enable a unified brand strategy, especially on Pizza Hut, future-proofs the growth of the business in the coming years,'' said Sapphire Foods. Shares of Sapphire Foods India on Tuesday settled at Rs 173.70 on BSE, down 1.39 per cent from the previous close.