Sapphire Foods India Limited — PPTs, 25-07-2025: Investor Presentation

**1. Financial Highlights:**

Q1FY26 Restaurant Sales grew 8% YoY to ₹774.8 Cr. However, Adj. EBITDA declined 22% YoY to ₹54.8 Cr, with margins at 7.1%. KFC's Q1 Restaurant EBITDA was 15.7%, but Pizza Hut's was -2.5%. Sri Lanka delivered strong 19% INR revenue growth, contributing positively.

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

The company added 11 net restaurants in Q1FY26, planning 60-80 new KFC stores annually and cautious, smaller Pizza Hut store expansion. Focus on optimizing restaurant size and leveraging a strong 44% delivery channel. Inorganic growth through QSR brand acquisitions is also being explored.

**3. Business Developments:**

Recent product rollouts include KFC Gold and Pizza Hut's 'Juicylicious' range. Sri Lanka operations achieved a significant turnaround. Sapphire Foods earned global recognition as World's Best KFC Franchisee and a Top 4 Pizza Hut Franchisee.

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

As a leading YUM franchisee, the company holds a strong position among top QSR operators. It secured India's No.1 QSR rank on the Dow Jones Sustainability Index for the second year, underscoring operational excellence.

**5. Investor Implications:**

Despite Q1 margin contractions, continued revenue growth and strategic expansion plans signal positive growth potential. Investors should monitor cost efficiency execution and Pizza Hut's profitability turnaround. The ₹245 Cr net cash provides flexibility for future initiatives.