Sapphire Foods Performance Analyzed
Sapphire Foods, a major restaurant operator in India and Sri Lanka, recently released its financial results for Q2 FY26. The company experienced a loss, but also saw some positive growth in sales. Let’s break down what happened.
- Sapphire Foods reported a loss of Rs 12.78 crore, up from Rs 6.24 crore.
- Restaurant sales increased by 6.6% year-over-year to Rs 740.01 crore.
- KFC’s same-store sales growth was impacted by Navratri shifting to Q2.
- EBITDA decreased by 7.8% due to lower profitability.
- The company expanded its restaurant count to 997 locations.
- Sapphire Foods operates a significant number of KFC and Pizza Hut restaurants.
The company’s net loss increased from Rs 6.24 crore in the previous quarter to Rs 12.78 crore. This was largely due to lower profits.
Despite the loss, Sapphire Foods still saw a 6.6% increase in sales from its restaurants. This means more people were buying food from KFC and Pizza Hut.
However, KFC’s same store sales growth was negatively affected because the Navratri festival, a time when people often eat less, occurred earlier than expected in the quarter.
The company’s profit margin, measured as EBITDA, decreased by 7.8% to Rs 106.16 crore. EBITDA measures the profitability of the core business operations.
Furthermore, Sapphire Foods reported a pre-tax loss of Rs 16.58 crore compared to Rs 6.12 crore in the previous quarter. This highlights the overall financial challenges.
During this period, Sapphire Foods strategically added 19 KFC restaurants, 2 Pizza Hut restaurants in India, and 1 Pizza Hut and 1 Taco Bell in Sri Lanka. As of September 30, 2025, they operate a total of 997 restaurants.
Sapphire Foods is a leading player in the Indian restaurant market, with a strong presence across both countries. They are the largest international QSR chain in Sri Lanka, based on revenue and restaurant numbers.
Ultimately, Sapphire Foods is working to maintain its leading position in the Indian and Sri Lankan fast-food market.
