KFC, Pizza Hut and Taco Bell operator reports over Rs 4 cr loss in Q3 FY26

Sapphire Foods India, which operates KFC, Pizza Hut and Taco Bell in India, reported a return to losses in the third quarter of FY26, even as revenue rose on both a year-on-year and sequential basis.

For the quarter ended December 31, 2025 (Q3 FY26), the company’s revenue from operations stood at Rs 813.83 crore, up 7.6% from Rs 756.54 crore in the year-ago quarter. On a quarter-on-quarter basis, revenue rose 9.6% from Rs 742.44 crore in Q2 FY26.

Total income for the quarter came in at Rs 820.89 crore, compared to Rs 767.04 crore in Q3 FY25, marking a 7% year-on-year increase. Total income also grew 9.2% sequentially from Rs 751.69 crore.

However, Sapphire Foods posted a net loss of Rs 4.81 crore in Q3 FY26, against a net profit of Rs 12.73 crore in Q3 FY25. The company had also reported a net loss of Rs 12.79 crore in Q2 FY26.

The quarter included exceptional items worth Rs 11.16 crore.

On the cost side, total expenses rose to Rs 813.08 crore, up 8.4% from Rs 750.22 crore a year ago. Expenses were also higher compared to Rs 768.26 crore in the previous quarter, reflecting a 5.8% sequential rise.

For the nine months ended December 31, 2025 (9M FY26), Sapphire Foods reported revenue from operations of Rs 2,333.09 crore, up 7.5% from Rs 2,170.52 crore in the corresponding period last year. Total income stood at Rs 2,356.18 crore, compared to Rs 2,194.76 crore in 9M FY25, reflecting a 7.4% increase.

Despite topline growth, the company reported a net loss of Rs 19.33 crore for the nine-month period, compared to a net profit of Rs 14.68 crore in the year-ago period.

Total expenses for the nine months rose 9.5% year-on-year to Rs 2,366.80 crore, from Rs 2,160.81 crore in 9M FY25.