Sapphire Foods India Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript Sapphire Foods India Ltd filed with BSE on 05 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
Sapphire Foods reported Q4 FY26 revenue of INR7.9 billion, up 11% year-on-year, with KFC revenue growth of 15% and Pizza Hut India revenue decline of 6%. Consolidated restaurant EBITDA grew 21% year-on-year with margin at 13%, up 100 basis points, while adjusted EBITDA rose 20% to INR61 crores. Management attributed the quarter's performance to a two-pronged consumer recruitment strategy in KFC, continued double-digit same-store sales growth in Sri Lanka, and described ongoing challenges from LPG availability and inflation in both India and Sri Lanka.
Numbers mentioned
Revenue: INR7.9 billion (Q4 FY26)
p. 3
“We delivered a revenue of INR7.9 billion with 11% growth Y-o-Y in the quarter, revenue for KFC grew by 15%, which is the highest in the last 8 quarters and Pizza Hut India revenue declined by 6%.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
Consolidated restaurant EBITDA growth: 21% year-on-year, margin 13%, up 100 basis points (Q4 FY26)
p. 3
“Our consolidated restaurant EBITDA grew 21% year-on-year and margin was 13%, up 100 basis points.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
Adjusted EBITDA: INR61 crores, up 20% year-on-year (Q4 FY26)
p. 3
“Adjusted EBITDA was INR61 crores, grew 20% year-on-year, and consolidated adjusted EBITDA was 7.7%.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
Consolidated adjusted PBT before exceptional items: INR8 crores, 1.1% (Q4 FY26)
p. 3
“Consolidated adjusted PBT before exception was INR8 crores, 1.1%.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
Consol PBT with exceptional items: negative INR15.5 crores or minus 2% (Q4 FY26)
p. 3
“Consol PBT with exceptional items was negative INR15.5 crores or minus 2% and these exceptional items include the impact of INR6.2 crores on account of Labour Code changes and INR6.6 crores towards merger-related costs, really the ESOP modification for employee-retention.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
Full year revenue growth: 8% (FY26)
p. 3
“Full year numbers, we delivered 8% revenue growth.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
Full year adjusted EBITDA: declined 9%, at 7.6%, 150 basis points down (FY26)
p. 3
“Adjusted EBITDA declined by 9% at 7.6%, 150 basis points down.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
KFC full year revenue growth and restaurant EBITDA: 11% growth, restaurant EBITDA 16.3%, down 100 basis points (FY26)
p. 3
“KFC grew by 11% with a restaurant EBITDA of 16.3%, down 100 basis points.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
KFC restaurant additions: 73 restaurants opened, 575 total (FY26)
p. 3
“We opened 73 KFC restaurants during the year, 575 total restaurants.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
Pizza Hut India full year revenue: INR507 crores, declined 7%, restaurant EBITDA minus 3.3% (FY26)
p. 3
“Pizza Hut revenue for the year declined by 7%, revenue of INR507 crores with a restaurant EBITDA of minus 3.3%, 570 basis points below last year.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
Sri Lanka full year revenue growth: 16% in LKR terms, restaurant EBITDA 14.9%, down 50 basis points (FY26)
p. 4
“Sri Lanka business grew 16% in LKR terms, with restaurant EBITDA of 14.9%, down 50 basis points.”
Sanjay Purohit, page 4 of the filed PDF · View the filing
KFC SSSG: 4% reported, 6% ex-Navratri (Q4 FY26)
p. 4
“As I said, KFC SSSG grew at 4%. 6% without the impact of Navratri last year, 2 days were in March and 7 days were in April.”
Sanjay Purohit, page 4 of the filed PDF · View the filing
KFC digital kiosk penetration: 73% of restaurants (Q4 FY26)
p. 4
“Our digital kiosks now have been implemented in 73% of restaurants.”
Sanjay Purohit, page 4 of the filed PDF · View the filing
KFC restaurant EBITDA margin: 16.8%, up 110 basis points (Q4 FY26)
p. 4
“This, along with the operating leverage, which we generated out of positive SSSG, meant that we improved our restaurant EBITDA by 110 basis points, which came in at 16.8%.”
Vijay Jain, page 4 of the filed PDF · View the filing
Pizza Hut India SSSG and revenue: minus 7% SSSG, revenue declined 6% (Q4 FY26)
p. 5
“From our SSSG perspective, minus 7% and overall revenue declined by 6% for the brand.”
Vijay Jain, page 5 of the filed PDF · View the filing
Sri Lanka restaurant margin: 14.6%, down 20 basis points (Q4 FY26)
p. 5
“We had a margin which came at 14.6%, down by 20 basis points, and the entire benefit of the operating leverage because of the SSSG did not flow through the bottom line on account of high minimum wages being experienced in a particular country, and there were 2 increases last year.”
Vijay Jain, page 5 of the filed PDF · View the filing
Sri Lanka SSSG: 11% for the quarter (Q4 FY26)
p. 5
“From SSSG perspective, 11% for the quarter, which was from a revenue perspective, 15% in LKR and 16% in INR terms.”
Vijay Jain, page 5 of the filed PDF · View the filing
KFC capex per store: INR2.1 crores to INR2.2 crores per store
p. 11
“So, KFC number looks like anywhere between INR2.1 crores to INR2.2 crores per store.”
Vijay Jain, page 11 of the filed PDF · View the filing
Pizza Hut capex per store: INR1.35 crores to INR1.4 crores per store
p. 11
“Pizza Hut, we have always called out that per store capex is like INR1.35 crores to INR1.4 crores per store.”
Vijay Jain, page 11 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
Capex — similar to FY26 level · FY27
stated firmly by Vijay Jain
p. 11
“When I look at the coming year, we see a similar number of capex, similar number in terms of the capex spend for FY '27 as well.”
Vijay Jain, page 11 of the filed PDF · View the filing
Gross margin impact from vendor support withdrawal — 50 to 70 basis points
stated conditionally by Vijay Jain
p. 7
“Having said that, if I look into the future and if the vendor partner support goes away, we expect the gross margin impact of anywhere or a gross margin investment of anywhere between 50 to 70 basis points.”
Vijay Jain, page 7 of the filed PDF · View the filing
Price hikes — no further price hike · near future
stated conditionally by Vijay Jain
p. 8
“We don't see any further price hike in the immediate future, unless we see the situation at the ground going dramatically southwards whether raw material prices or for that matter, specifically oil prices go out of the whack.”
Vijay Jain, page 8 of the filed PDF · View the filing
Sri Lanka store expansion pace — high single digit to low double digit new stores · next 2 to 3 years
stated as an aspiration by Vijay Jain
p. 13
“I think from where we are in terms of the margin, the SSSG, the overall business condition, we should be able to accelerate store expansion as well as in Sri Lanka, which would be anywhere between, let's say, a high single digit or low early double digits as well.”
Vijay Jain, page 13 of the filed PDF · View the filing
Merger with Devyani International completion — consumed merger · by the end of this financial year
stated conditionally by Vijay Jain
p. 16
“So, I would say it looks like by the end of this financial year, we should be in a position to consume the merger.”
Vijay Jain, page 16 of the filed PDF · View the filing
SEBI approval for merger — clearance · next 30 to 45 days
stated conditionally by Vijay Jain
p. 16
“We expect that clearance probably to happen over the next 30 to 45 days.”
Vijay Jain, page 16 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the offer has been rolled out to all stores except Tamil Nadu, and clarified it is a permanent value layer, not a promotion.
Answered by Sanjay Purohit
Asked by Saurabh Kundan: Is the early value initiative in KFC now rolled out across the network, especially North and West?
p. 6
“So, we started it, Saurabh, in about 150-odd stores in the month of November, December, then rolled it out to perhaps 200 stores in January, February, March.”
Sanjay Purohit, page 6 of the filed PDF · View the filing
Management said additional marketing spend has increased by roughly 75-100 basis points.
Answered by Vijay Jain
Asked by Saurabh Kundan: How much has marketing/ad spend increased as a percentage of KFC sales?
p. 7
“So, while I'm not giving the exact number, anywhere between 75 basis points to a 100-bps additional marketing spend we have put behind the brand.”
Vijay Jain, page 7 of the filed PDF · View the filing
Management said KFC had zero store closures through the LPG disruption while Pizza Hut had limited closures, and the situation remained largely stable into April.
Answered by Vijay Jain
Asked by Tejash Shah: How was the operating environment across Jan-Feb versus March, and how is it currently?
p. 7
“So, there was a zero closure on KFC, and there continues to be zero closure on KFC, few stores would have been impacted by truncated menu, few stores would have been impacted by truncated timings, but those are a handful of the stores.”
Vijay Jain, page 7 of the filed PDF · View the filing
Management detailed price hikes taken in KFC and Pizza Hut and said no further hikes are planned unless conditions worsen.
Answered by Vijay Jain
Asked by Tejash Shah: What price hikes have been taken or planned given expected energy cost increases?
p. 8
“So currently for KFC, the price hike has happened in the range of 1-odd percent.”
Vijay Jain, page 8 of the filed PDF · View the filing
Management said margin recovery is tied to sustaining SSSG rather than the base having bottomed.
Answered by Vijay Jain
Asked by Gaurav Jogani: Have KFC restaurant EBITDA margins bottomed out with only recovery ahead?
p. 9
“So, the drop of margin has been a direct result of lack of SSSG for last 2 years.”
Vijay Jain, page 9 of the filed PDF · View the filing
Management attributed it to a combination of improved demand environment and the specific two-pronged consumer recruitment strategy.
Answered by Vijay Jain
Asked by Gaurav Jogani: What has driven the recent SSSG recovery in KFC?
p. 9
“Certainly, we believe the consumer environment from a demand perspective is certainly improved in Q4, and this is what we were alluding to when we had a Q3 con call as well.”
Vijay Jain, page 9 of the filed PDF · View the filing
Management said the improvement seems attributable to their own initiatives but declined to make a definitive comparative statement before other results are out.
Answered by Sanjay Purohit
Asked by Avi Mehta: How does Sapphire's strong April SSSG contrast with cautious consumer sentiment cited by other discretionary retailers?
p. 12
“So, we believe that it is work that we have done. But we are the first to go off the block in terms of announcing full year and quarter 4 results.”
Sanjay Purohit, page 12 of the filed PDF · View the filing
Management pointed to brand strength, restrained pricing versus inflation, and innovation as drivers, and said store expansion could accelerate over the next 2-3 years.
Answered by Vijay Jain
Asked by Rehan Saiyyed: How much of Sri Lanka's SSSG growth is market share gain versus normalization, and is there room to accelerate store additions?
p. 13
“So, a huge focus on making sure that we make our products more affordable in terms of value that has played a really good hand in helping us drive this double-digit SSSG.”
Vijay Jain, page 13 of the filed PDF · View the filing
Management explained the INR99 meal drives higher transactions with lower average bill value, with an estimated 2-3% impact on APC at the organizational level.
Answered by Vijay Jain
Asked by Percy: What exactly does the value strategy involve, and what is its impact on bill value/APC?
p. 15
“So, at the organization level, what's Sanjay is saying, probably anywhere between 2% to 3% from a impact on a APC on these offers per se.”
Vijay Jain, page 15 of the filed PDF · View the filing
Management clarified that vendor support applies to the INR99 meal, not BOGO, and that BOGO does carry a gross margin impact but only on the specific promotion days.
Answered by Vijay Jain
Asked by Percy: Does the BOGO offer or the INR99 meal have a bigger gross margin impact given vendor participation?
p. 16
“The answer is yes, there is the impact of BOGO the gross margin, but it's there for that particular day because we don't run it on a continuous basis.”
Vijay Jain, page 16 of the filed PDF · View the filing
Management outlined the remaining regulatory steps and estimated completion by the end of the financial year.
Answered by Vijay Jain
Asked by Kevin Gandhi: What is the expected timeline for completion of the merger with Devyani International?
p. 16
“So, from a process point of view, when we announced it on first of Jan, we called it out, it's a 12 to 15 months process.”
Vijay Jain, page 16 of the filed PDF · View the filing
Risks flagged
LPG availability disruption and inflation affecting store operations in India and Sri Lanka
p. 3
“And you will all know this is despite the LPG-related availability that we have faced both in India and Sri Lanka and some inflationary challenges.”
Sanjay Purohit, page 3 of the filed PDF · View the filing
Potential increase in LPG/energy costs impacting Pizza Hut EBITDA
p. 8
“So, the bigger challenge right now is the LPG price where the impact could be anywhere between 25% to 40% increase in terms of the cost, which could impact the EBITDA by 30 to 50 basis point.”
Vijay Jain, page 8 of the filed PDF · View the filing
Potential gross margin pressure if vendor partner support is withdrawn
p. 7
“Having said that, if I look into the future and if the vendor partner support goes away, we expect the gross margin impact of anywhere or a gross margin investment of anywhere between 50 to 70 basis points.”
Vijay Jain, page 7 of the filed PDF · View the filing
Ongoing macroeconomic and geopolitical volatility in Sri Lanka affecting fuel and LPG availability
p. 10
“So, it's a tough situation from being able to manage both fuel for our transport vehicles as well as LPG.”
Vijay Jain, page 10 of the filed PDF · View the filing
Pizza Hut India business continuing to face performance challenges
p. 5
“Let me take the Pizza Hut business performance. It continues to be challenging.”
Sanjay Purohit, page 5 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.