Sapphire Foods India Ltd(SAPPHIRE)

NSE: SAPPHIREBSE: 543397

₹ 195.2-0.05%refreshed 23 Oct, 03:30 pm ISTMarket cap: ₹ 6,273 crWebsite: www.sapphirefoods.inUpdated: 23 Oct 2026

About

Sapphire Foods India Ltd is a franchisee operator of KFC, Pizza Hut, and Taco Bell restaurants across India and Sri Lanka. As of Q1 FY27, it operates 1,074 restaurants and reported consolidated revenue of ₹8,882 Mn in Q1 FY27, up 15% year-on-year. It is one of the two major Pizza Hut franchisees in India and holds the number-one QSR position in Sri Lanka.^[1]

Business segments

KFC India restaurant-related revenue was ₹19,039 million in FY25 vs ₹17,157 million in FY24.^[2]
Pizza Hut India restaurant-related revenue was ₹5,450 million in FY25 vs ₹5,185 million in FY24.^[2]
Sri Lanka restaurant-related revenue was ₹4,228 million in FY25 vs ₹3,397 million in FY24.^[2]

Brands and products

The company describes itself as one of Yum! Brands' largest franchisees in the Indian subcontinent (FY25 annual report).^[2]
The FY25 annual report describes Pizza Hut as the second-largest pizza chain in India.^[2]
KFC uses a three-tier value structure as of FY25: Core at ₹99, Individual meal at ₹149 and Group meal at ₹399.^[2]
Pizza Hut launches in FY25 included Melts (a folded pizza), Momo Mia, Thin & Crispy Pizza, and Pasta by Pizza Hut, run as a separate brand on aggregators.^[2]

Restaurant network

Total restaurant count was 1,074 as of 30 Jun 2026: 591 KFC India, 346 Pizza Hut India, 126 Pizza Hut Sri Lanka, and 11 Taco Bell Sri Lanka.^[1]
22 net new stores were added in Q1 FY27: 16 KFC India, 5 Pizza Hut India, and 1 Pizza Hut Sri Lanka.^[1]
In FY25 it opened 91 net new restaurants: 73 KFC and 15 Pizza Hut in India, 7 Pizza Hut in Sri Lanka, with 4 closures in Maldives.^[2]
KFC India expansion is guided at 60-80 stores per year; a five-year aspiration is to double KFC India from ~591 to ~1,200 stores by FY31.^[1]
Pizza Hut India expansion remains cautious through CY26; new openings will follow once a unified brand proposition is agreed post-CCI approval of the Devyani merger.^[1]
The KFC development agreement with Yum requires minimum net new stores through Dec 2026; Yum may consider revoking exclusivity if targets are missed.^[2]
The Pizza Hut development agreement with Yum was amended till 2028 with revised targets; a USD 500,000 deposit is forfeitable if targets are missed (FY25).^[2]
The Sri Lanka business was present in 74 towns as of FY25.^[2]

Key operating metrics

KFC India SSSG was 5% in Q1 FY27, following 4% (6% ex-Navratri) in Q4 FY26 and +1% in Q3 FY26.^[1]
Pizza Hut India SSSG returned to +1% in Q1 FY27, the first positive quarter after five consecutive negative quarters.^[1]
Sri Lanka SSSG was 9% in LKR in Q1 FY27; revenue grew 14% in LKR for the quarter.^[1]
Consolidated gross margin was 69.0% in Q1 FY27.^[1]

Restaurant-level margins by brand

KFC India restaurant EBITDA margin was 16.9% in Q1 FY27, up 120 bps YoY, despite gas cost headwinds.^[1]
Pizza Hut India restaurant EBITDA margin was -3.6% in Q1 FY27, down 110 bps YoY; it was -3.3% for FY26, down 570 bps.^[1]
Sri Lanka restaurant EBITDA margin was 12.0% in Q1 FY27, down 70 bps YoY, pressured by minimum wage revision, rupee depreciation and Middle East conflict costs.^[1]
Consolidated restaurant EBITDA margin was 13.0% in Q1 FY27, up 80 bps YoY; consolidated Adj. EBITDA margin was 8.4%, up 130 bps YoY.^[1]

Channel mix and digital

KFC India dine-in and takeaway mix reached 59% in Q1 FY27, up 2 percentage points YoY, helped by a ₹99 Chicken Krisper Burger Meal and selective BOGO offers.^[1]
Digital kiosks were in 73% of KFC restaurants as of Q4 FY26, up from 70% in Q3 FY26.^[3]
KFC delivery mix reached 45% in Q2 FY26, up 300 bps YoY; the own KFC app grew 2-3x faster than third-party aggregators.^[4]
The Pizza Hut app had more than 16.6 million downloads and 1.4 million monthly active users as of FY25.^[2]

Pizza Hut Tamil Nadu template

Tamil Nadu is an exclusive Sapphire territory with no Devyani overlap; unified marketing there has delivered a double-digit SSSG delta and positive EBITDA delta vs rest of India for multiple quarters.^[1]
Management describes Tamil Nadu as a blueprint for pan-India execution once CCI approves the Devyani merger.^[1]

Devyani merger

On 1 Jan 2026, boards approved merging Sapphire Foods into Devyani International at 177 DIL shares per 100 SFIL shares; the combined entity would have 3,000+ stores and ~₹8,000 Cr annualised revenue.^[5]
As of Q4 FY26, SEBI clearance was expected within 30-45 days, followed by a 7-10 month NCLT process, with completion targeted by end of FY27.^[3]
Net synergies of ₹210-225 Cr are expected, ~60% in year one post-approval and the balance in year two.^[5]

Recent regulatory developments

On 28 Sep 2026, a GST show cause notice from the Deputy Commissioner, Ghaziabad alleged short payment of ₹21.45 Mn; the company says it is not maintainable, with no material impact expected.^[6]
On 26 Sep 2026, a GST show cause notice of ₹199.90 Mn was received from DGSTO-4 Bengaluru; the company says it is not maintainable.^[7]
On 22 Sep 2026, two GST show cause notices from Chennai, for ₹214.65 Mn (Apr 2022-Mar 2023) and ₹5,168.38 Mn, were received; the company deems both not maintainable.^[8]

Market Cap

₹6,273 Cr

High / Low

₹310 / 140

Stock P/E

-391.3

Price / Book

4.5

Book Value

₹43

EPS

₹-1.0

No. of Shares

32.14 Cr

ROCE

4.2%

ROE

-2.3%

OPM

3.5%

Debt / Equity

0.00

Sales

₹3,125 Cr

Net Profit

₹-32 Cr

Promoter holding

26.1%

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