Sapphire Foods India Limited — Investor Meet, 27-10-2025: Analysts/Institutional Investor Meet/Con. Call Updates

Sapphire Foods posted Q2FY26 revenue of 740 Cr (+7% YoY). KFC revenue grew 7% (double-digit excluding Navratri impact), adding 19 restaurants. Pizza Hut revenue fell 6%, though its Tamil Nadu (TN) market delivered double-digit growth, proving a successful strategy blueprint. Sri Lanka revenue surged 18% in LKR terms, showing robust recovery.

Consolidated Restaurant EBITDA margin was 11.3% (-240 bps YoY), with a PAT loss of 12.8 Cr. Management noted the 'Taste the Epic' campaign is boosting KFC transactions. The TN success for Pizza Hut, focused on dine-in, innovation, and mass media, is a key focus for pan-India replication, though it requires further investment. Sri Lanka's strong 15.4% Restaurant EBITDA signals effective recovery.

The company observes constrained consumer discretionary spending and high competition. Early Q3 trends hint at recovery, with management looking to government initiatives for consumption uplift. Pizza Hut expansion is currently paused until growth improves. Sentiment: Cautiously optimistic on strategic initiatives and potential market tailwinds.