Sapphire Foods posts Q1 loss of Rs 17 million as Pizza Hut drop offsets KFC growth

Despite the loss, the company’s revenue rose 7% year-on-year to Rs 7,748 million in Q1 FY26

by e4m Staff
Published: Jul 23, 2025 6:40 PM | 1 min read

Sapphire Foods India Ltd, the operator of KFC and Pizza Hut outlets, reported a consolidated net loss of Rs 17.38 million for the first quarter of FY26, compared to a profit of Rs 81.86 million in the same period last year.

Despite the loss, the company’s revenue rose 7% year-on-year to Rs 7,748 million in Q1 FY26. However, total expenses also climbed, increasing from Rs 7,117.19 million in Q1 FY25 to Rs 7,854.52 million this quarter.

The company’s consolidated EBITDA dropped 13% year-on-year, with the EBITDA margin narrowing to 12.2%.

KFC’s revenue grew 11% during the quarter, although its Same-Store Sales Growth (SSSG) remained flat. In contrast, Pizza Hut reported a 5% decline in revenue and an 8% drop in SSSG, impacting overall performance.

SSSG refers to Same-Store Sales Growth, a key industry metric that measures revenue growth from existing outlets that have been operational for at least a year, excluding newly opened locations.

Total restaurant sales rose 8% YoY to Rs 7,748 million for the June quarter. Sri Lanka operations continued to perform well, delivering strong double-digit SSSG.

Restaurant sales in Sri Lanka increased to Rs 1,164 million in Q1 FY26, up 19% from Rs 978 million in the same quarter last year.

During the quarter, Sapphire Foods added 11 new restaurants: 8 KFC and 2 Pizza Hut outlets. The company now operates 974 food outlets across India and Sri Lanka.