Sapphire Foods Q2 FY27 Loss Narrows To ₹1.51 Crore, Revenue Rises 19.6 Per Cent To ₹888 Crore

New Delhi, October 22, 2026: Sapphire Foods India, a franchisee operator of Yum! Brands' quick-service restaurant (QSR) chains KFC and Pizza Hut, on Thursday reported a narrowing of its consolidated loss to Rs 1.51 crore in the September quarter of FY27, on a year-on-year basis, aided by growth in revenue and EBITDA.

The company posted a consolidated net loss of Rs 12.78 crore in the July-September 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.

However, revenue from operations rose 19.6 per cent to Rs 888 crore in the September quarter of FY27 from Rs 742.43 crore in the year-ago period, it added.

“Sapphire Foods has delivered the best quarter of revenue growth (20%) and adjusted EBITDA growth (39%) since Covid period (i.e. last 16 quarters),” according to the company's earnings statement.

The company operates in India and Sri Lanka.

Restaurant Network Expands In Q2

In Q2FY27, Sapphire Foods added 15 KFC restaurants and one Pizza Hut outlet in Sri Lanka, taking its total restaurant count to 1,086 as of September 30, 2026.

KFC Business Records 26% Revenue Growth

Sapphire Foods India's KFC business reported 26 per cent revenue growth, driven by double-digit transaction growth and value-led promotional offers.

Its same-store sales growth (SSSG) stood at 14 per cent, while restaurant EBITDA margin improved by 70 basis points year-on-year to 14.5 per cent, despite inflation in raw material and energy costs and higher marketing investments.

Pizza Hut And Sri Lanka Businesses Grow

Its Pizza Hut business reported 7 per cent revenue growth, with same-store sales rising 5 per cent, its highest in seven quarters. Same-store transaction growth remained in double digits, including positive growth in dine-in and takeaway.

The company's Sri Lanka business recorded 9 per cent revenue growth in local currency terms, with same-store sales rising 5 per cent.

Expenses And Consolidated Income Rise

Total expenses of Sapphire Foods were up 16.56 per cent in the second quarter of FY27 to Rs 8,955.53 crore.

Sapphire Foods' total consolidated income, which includes other income, was up 19 per cent to Rs 894.97 crore in the September quarter.

In the first half of FY26, Sapphire Foods' total income was at Rs 1,791.60 crore, up 16.7 per cent.

Also Watch:

Merger With Devyani International

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.

Shares of Sapphire Foods India settled at Rs 195.65 on the BSE on Thursday, up 1.40 per cent from the previous close.

(Disclaimer: Except for the headline, this article has not been edited by FPJ's editorial team and is auto-generated from an agency feed.)