Sapphire Foods India Limited — PPTs, 23-07-2025: Investor Presentation

Here's a summary of Sapphire Foods' Q1 FY26 performance:

**1. Financial Highlights:**

Sapphire Foods' Q1 FY26 revenue up 8% YoY to ₹774.8 Cr. Profitability declined significantly: Consolidated Restaurant EBITDA fell 13% (12.2% margin), and Adjusted EBITDA dropped 22% to ₹54.8 Cr (7.1% margin). Consolidated PAT was a ₹1.7 Cr loss. KFC India saw positive transaction growth; Pizza Hut India revenue declined. Sri Lanka business showed strong double-digit SSSG.

**2. Strategic Initiatives & Growth Drivers:**

The company added 11 restaurants, now totaling 974 outlets. KFC India is investing in "value campaigns" and rolling out digital kiosks for efficiency. Pizza Hut launched the "Juicylicious" range, using targeted marketing to replicate its successful Sri Lanka growth strategy. Focus remains on efficient, smaller omni-channel restaurant expansion.

**3. Business Developments:**

Q1 saw 8 new KFC and 3 new Pizza Hut restaurant additions. Key product rollouts included KFC Gold premium items and Pizza Hut's "Juicylicious" range. Digital initiatives via brand apps are expanding significantly, enhancing customer experience and delivery efficiency.

**4. Market Position & Competitive Advantage:**

Sapphire Foods is a leading YUM franchisee in India and Sri Lanka, operating 974 restaurants, showcasing significant scale. The company highlights its strong execution, customer focus, and capability for rapid organic and inorganic expansion. Notably, a Sapphire KFC outlet achieved an IGBC Platinum rating, a QSR first in India.

**5. Investor Implications:**

While revenue growth is positive, the decline in profitability and margins is a key area for observation. KFC India's positive transaction trend offers promise. Pizza Hut's strategic marketing efforts, though impacting short-term EBITDA, aim for a turnaround. Continued expansion signals long-term growth potential, but margin recovery is crucial to monitor.