Sapphire Foods India (SAPPHIRE) Q1 26/27 earnings summary

Executive summary

• Achieved 15% year-over-year revenue growth in Q1 FY27, the highest in 11 quarters, with strong same-store sales growth (SSSG) across all brands and geographies.

• Adjusted EBITDA grew 37% YoY, reaching the highest level in 15 quarters, with margin expansion of 130 bps to 8.4%.

• Added 22 new restaurants, bringing the total count to 1,074 as of June 30, 2026.

• Unaudited standalone and consolidated financial results for the quarter ended June 30, 2026, were reviewed and approved by the Board and Audit Committee on July 24, 2026.

• Both standalone and consolidated results were prepared in accordance with Indian Accounting Standards (Ind AS) and reviewed by Deloitte Haskins & Sells.

Financial highlights

• Q1 FY27 consolidated revenue was INR 8,909.60 million, up 15% YoY; adjusted EBITDA was INR 749 million, up 37% YoY; EBITDA margin improved to 15.8%.

• Adjusted profit before tax (PBT) rose 229% YoY to INR 273 million; reported PBT was INR 162 million, reversing a loss in Q1 FY26.

• Consolidated net profit after tax for Q1 FY27 was INR 140.22 million, compared to a net loss of INR 17.38 million in Q1 FY26.

• Gross margin improved to 69.0% (up 140 bps YoY); consolidated restaurant EBITDA margin rose to 13.0% (up 80 bps YoY).

• Basic and diluted EPS for Q1 FY27 were INR 0.44 (consolidated), compared to negative EPS in Q1 FY26.

Outlook and guidance

• KFC store expansion guidance remains at 60-80 stores for the year; Pizza Hut expansion to remain cautious.

• Sri Lanka store addition guidance remains high single digits despite inflationary pressures.

• The company continues to monitor regulatory changes, especially regarding labor codes, and is prepared for further clarifications or guidance from authorities.

• Focus remains on driving SSSG and maintaining healthy margins rather than aggressively targeting higher margins.

• Continued focus on value-driven consumer recruitment strategies and operational leverage to sustain growth.