New Delhi: Sapphire Foods India, a franchisee operator for YUM Brands for its QSR chains KFC and Pizza Hut, on Friday reported a consolidated loss of Rs 4.80 crore in the December quarter of FY26, on account of exceptional items as implementation of new labour laws and merger-related expenses.
The company posted a consolidated net profit of Rs 12.7 crore in the October-December quarter a year ago, according to a regulatory filing from Sapphire Foods India, which last month announced plans to merge with rival QSR Chain Devyani International.
Sapphire Foods had reported an exceptional item (net loss) of Rs 11.1 crore in the December quarter, mainly due to the implementation of new Labour Codes. This includes the impact of Rs 8 crore on account of labour code changes and Rs 3.1 crore towards merger related cost.
It had a profit before exceptional items and tax of Rs 7.81 crore in the quarter under review, down 53.5 per cent.
However, its consolidated revenue from operations was up 7.57 per cent to Rs 813.82 crore in the December quarter. It stood at Rs 756.53 crore in the year-ago period, it added.
"Q3 FY26 performance saw much improvement on profitability compared to earlier quarters led by KFC. Revenue for KFC grew by 11 per cent and Pizza Hut India revenue declined by 11 per cent," said an earnings statement from Sapphire Foods.
Its Sri Lanka business continued its strong growth trajectory with revenue up by 15 per cent, it added.
Sapphire Foods India, which operates in India and Sri Lanka, total expenses increased 8.37 per cent to Rs 813.08 crore in the December quarter.
Total consolidated income, which includes other income, was up 7.02 per cent to Rs 820.89 crore during the period under review.
In Q3FY26, Sapphire Foods added 27 KFC restaurants, 1 Pizza Hut in India and 3 Pizza Hut in Sri Lanka.
As of December 31, 2025, Sapphire Foods' total restaurant count was 1,028.
Last month, 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 on Friday were trading at Rs 214.15 on BSE, down 2.04 per cent from the previous close.
(Except for the headline, this article has not been edited by FPJ's editorial team and auto-generated from an agency feed.)
