By BullScreen Editorial Team 
Sapphire Foods India Limited reported a mixed performance in its Q4 results 2026, with strong sales growth and improved operating metrics offset by continued losses due to exceptional costs. The company delivered its best quarterly performance in three years in terms of same-store sales growth (SSSG) and adjusted EBITDA expansion.
Restaurant sales for the quarter rose 11% year-on-year to ₹7,898 million, supported by robust demand, particularly in its KFC business. Adjusted EBITDA grew 20% to ₹610 million, with margins improving to 7.7% from 7.2% a year earlier. Reported EBITDA stood at ₹1,249 million, marking a 10% increase, with margins at 15.8%.
Despite the operational gains, the company posted a pre-tax loss of ₹155 million. This was largely due to exceptional expenses of ₹128 million, including costs related to labor code changes and merger-related adjustments.
For the full financial year, revenue increased 8% to ₹31,159 million. However, adjusted EBITDA declined 9% to ₹2,382 million, while the company reported a net loss of ₹320 million compared to a profit in the previous year, highlighting margin pressures.
KFC remained the key growth driver in the Q4 results 2026, with revenue rising 15% its strongest performance in eight quarters. Same-store sales grew 4%, or 6% excluding seasonal impacts, while restaurant-level EBITDA margins stood at a healthy 16.8%. In contrast, Pizza Hut India continued to face challenges, with revenue declining 6% and SSSG falling 7%, leading to negative EBITDA margins of 6%.
The Sri Lanka business delivered steady growth, with revenue rising 15% in local currency terms and SSSG at 11%, marking its sixth consecutive quarter of double-digit growth.
Operationally, Sapphire expanded its network to 1,052 restaurants, including 575 KFC outlets and 341 Pizza Hut stores in India. Digital engagement also remained strong, with over 66.6 million app downloads for KFC and increasing kiosk adoption across stores.
Looking ahead, the company’s planned merger with Devyani International is expected to strengthen brand strategy, particularly for Pizza Hut, while KFC’s value-driven offerings continue to support growth momentum.
| Metric | Q4 FY26 | YoY Change | Insights |
|---|---|---|---|
| Restaurant Sales | ₹7,898 million | +11% | Strong quarterly growth driven by KFC |
| Adjusted EBITDA | ₹610 million | +20% | Highest growth in 3 years |
| Adjusted EBITDA Margin | 7.7% | ↑ from 7.2% | Margin expansion continues |
| Reported EBITDA | ₹1,249 million | +10% | Stable operational performance |
| PBT | -₹155 million | Loss | Impact of exceptional items |
| Exceptional Costs | ₹128 million | — | Labor + merger-related expenses |
| Metric | FY26 | YoY Change | Insights |
|---|---|---|---|
| Revenue | ₹31,159 million | +8% | Moderate annual growth |
| Adjusted EBITDA | ₹2,382 million | -9% | Margin pressure |
| Net Profit (PAT) | -₹320 million | Decline | Shift from profit to loss |
| Brand | Metric | Performance | Insights |
|---|---|---|---|
| KFC India | Revenue Growth | +15% | Best in last 8 quarters |
| SSSG | 4% (6% adjusted) | Healthy demand trend | |
| EBITDA Margin | 16.8% | Strong profitability | |
| Pizza Hut India | Revenue Growth | -6% | Weak demand |
| SSSG | -7% | Continued decline | |
| EBITDA Margin | -6.0% | Loss-making segment | |
| Sri Lanka Business | Revenue Growth | +15% (LKR) | Strong momentum |
| SSSG | 11% | 6th consecutive double-digit growth | |
| EBITDA Margin | 14.6% | Stable margins |
| Category | Metric | Data |
|---|---|---|
| Store Network | Total Stores | 1,052 |
| KFC India | 575 stores (+73 YoY) | |
| Pizza Hut India | 341 stores (+7 YoY) | |
| Sri Lanka | 136 stores | |
| Digital Metrics | KFC App Downloads | 66.6+ million |
| Pizza Hut App Downloads | 29+ million | |
| Monthly Active Users | 2.27M (KFC), 0.8M (Pizza Hut) | |
| KFC Kiosk Penetration | 73% stores |
| Focus Area | Details |
|---|---|
| Merger Strategy | Planned merger with Devyani International to strengthen brand synergies |
| Growth Driver | KFC leading performance with value-based offerings |
| Challenge Area | Pizza Hut turnaround remains key focus |
| Future Outlook | Focus on digital growth and unified brand strategy |
Source: https://www.bseindia.com/xml-data/corpfiling/AttachLive/834c1266-4ed4-4ce2-9c79-52868bdee2e8.pdf