Sapphire Foods India Limited has released its Environmental, Social and Governance (ESG) Report for the financial year 2025-26, detailing its sustainability performance and operational footprint. The report, aligned with the Global Reporting Initiative (GRI) Standards, was submitted to the exchanges on June 27, 2026. It covers the standalone operations of the company for the period from April 1, 2025, to March 31, 2026, highlighting advancements in sustainable packaging, energy conservation, and responsible sourcing across India and Sri Lanka.

The company reported operating 916 KFC and Pizza Hut restaurant outlets nationally as of March 31, 2026. Its international operations, managed through subsidiaries, include 136 outlets in Sri Lanka. The total workforce comprises 13,823 permanent employees, with women representing 38% of the total staff and 28% of management positions. Sapphire Foods noted that it does not employ any workers, categorising all its staff as permanent employees.

Sustainability Performance

Sapphire Foods disclosed significant advancements in its environmental initiatives. The company achieved 100% eco-friendly packaging across its operations and eliminated single-use plastics from consumer packaging. In terms of energy management, rooftop solar installations were expanded to 121 restaurants, marking a 34% increase over the previous year. Energy Management Systems (EMS) now cover 97% of KFC outlets and 100% of Pizza Hut outlets.

Water management efforts include equipping 100% of restaurants with wastewater disposal systems. The company reported that 100% of its suppliers are SEDEX members and approximately 100% are GFSI-certified. Additionally, over 92% of fresh produce sourcing is traceable. The report also confirmed that 100% of restaurants have FoSTaC-certified Restaurant General Managers.

Governance and Assurance

The governance of the company's sustainability agenda is overseen by the CSR & ESG Committee, with Mr. Sanjay Purohit, Whole-time Director and Group CEO, serving as the senior-most executive responsible for implementation. The report was prepared in accordance with Regulation 34(2)(f) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, and aligns with the National Guidelines on Responsible Business Conduct (NGRBC).

Bureau Veritas (India) Private Limited provided limited assurance on the sustainability and non-financial performance disclosures for FY 2025-26. The assurance engagement was conducted in accordance with the Standard on Sustainability Assurance Engagements (SSAE) 3000 and the Standard on Assurance Engagements (SAE) 3410. The independent statement confirmed that nothing came to their attention to indicate the BRSR disclosures were inaccurate.

The company identified material responsible business conduct issues, including food safety, supply chain management, and data privacy. It reported zero stakeholder complaints related to unfair trade practices, irresponsible advertising, or anti-competitive conduct during the reporting period. The BRSR also affirmed compliance with statutory requirements, with no instances of non-compliance regarding the NGRBC principles.

Sapphire Foods India Ltd has successfully defended itself against a goods and services tax (GST) demand of ₹977.06 million raised by the Tamil Nadu commercial tax department. The Assistant Commissioner, Koyambedu, passed an order in favour of the company, dismissing the demand related to the periods April 2022 to March 2023 and April 2023 to March 2024. The authority confirmed that the company did not avail excessive input tax credit and had correctly claimed eligible credits.

The dispute originated from a show cause notice issued under Section 73 of the Tamil Nadu SGST Act, 2017, via DRC-01. The company had previously intimated the exchanges regarding this notice on May 27, 2026. The recent orders dated June 23, 2026, and June 26, 2026, conclusively settled the matter in the company's favour.

Details of the Order

The Assistant Commissioner (Appeals) examined the claims and held that the company's input tax credit availed was valid. Consequently, the cumulative demand of ₹977.06 million was dismissed. A separate order for the period April 2022 to March 2023 involving ₹2.06 million was received on June 23, 2026, but was not disclosed earlier as the amount was below the regulatory threshold.

The settlement of this proceeding removes a significant financial contingency for the company. There is no impact on the financial position as no penalty or compensation was paid.