Sapphire Foods India (SAPPHIRE) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 restaurant sales rose 20% YoY to ₹8,853 Mn and adjusted EBITDA increased 39% to ₹624 Mn, with 7.1% margin; growth was strongest in 16 quarters.

• Restaurant count reached 1,086 at Sep. 30, 2026; Q2 openings included 15 KFC restaurants and one Pizza Hut in Sri Lanka.

Financial highlights

• Consolidated revenue from operations was ₹8,880.27 Mn vs ₹7,424.37 Mn YoY; H1 revenue was ₹17,789.87 Mn vs ₹15,192.65 Mn.

• Q2 adjusted EBITDA was ₹624 Mn, up 39% YoY, with a 7.1% margin, up 100 bps; Q2 EBITDA was ₹1,286 Mn, up 21%, at a 14.5% margin.

• Q2 net loss narrowed to ₹15.13 Mn from ₹127.87 Mn; H1 net profit was ₹125.09 Mn vs a loss of ₹145.25 Mn.

• Adjusted PBT before exceptional items and Ind AS 116 adjustments was ₹120 Mn, or 1.4% of sales; PBT before exceptional items was -₹6 Mn.

Outlook and guidance

• Management expects cost inflation to peak in Q3 but anticipates further near-term input-cost pressure; pricing decisions remain cautious to protect growth.

• KFC SSSG for Q2 and Q3 combined is expected in the high single digits, including the Navratri timing shift; Pizza Hut receives no festive-shift benefit.

• FY27 marketing spend is planned to rise 50–100 bps for KFC and 100–150 bps for Pizza Hut; value promotions and marketing remain central to growth plans.

• KFC store-addition guidance remains 60–80 for the year; Pizza Hut expansion is cautious, with openings expected to be broadly neutral in CY26.