Sapphire Foods India Limited held its board meeting on April 28, 2026, approving comprehensive financial results and significant leadership decisions. The meeting, which commenced at 12:30 p.m. and concluded at 1:40 p.m., addressed multiple critical corporate matters under Regulation 30 of SEBI Listing Regulations.

Financial Results Approval and Audit Opinion

The board considered and approved audited financial results for the quarter and year ended March 31, 2026, following recommendations from the Audit Committee. Deloitte Haskins & Sells, the company's statutory auditors, issued unmodified audit opinions on both standalone and consolidated financial statements.

Leadership Re-appointments and Changes

The board approved multiple director re-appointments subject to shareholder approval at the 17th Annual General Meeting. Sanjay Purohit will continue as Whole Time Director and Group CEO for five years from July 23, 2026, to July 22, 2031, or until the proposed merger with Devyani International Limited becomes effective.

Senior Management Departure

Amar Patel, Executive Vice President and Chief Technology Officer, has resigned from his position. According to the regulatory filing dated April 30, 2026, Mr. Patel tendered his resignation to pursue new challenges and opportunities outside the organisation. The company clarified there is no other material reason for the resignation beyond this stated reason. He will serve his notice period until June 1, 2026, or such other date as determined by management. This represents a significant change in the company's senior technology leadership.

Annual Financial Performance Overview

For the full year ended March 31, 2026, the company reported consolidated revenue of ₹31,253.17 million compared to ₹28,818.64 million in the previous year, representing 8.44% growth. However, the company recorded a consolidated loss after tax of ₹319.54 million against a profit of ₹167.04 million in FY25.

Regulatory Compliance and Publication

Pursuant to Regulation 47 of SEBI Listing Regulations, the company published newspaper advertisements in Business Standard (All Editions) and Navshakti (Mumbai Edition) on April 29, 2026, regarding the financial results. The advertisement was signed by Sachin Dudam, Company Secretary and Compliance Officer, confirming regulatory compliance for the quarter and year ended March 31, 2026.

The comprehensive board meeting documentation includes detailed director profiles, relationship disclosures, and compliance confirmations under SEBI regulations. All re-appointed directors have been confirmed as not debarred from holding office by any regulatory authority. The company maintains its single reportable operating segment of restaurant operations under Ind AS 108.

Sapphire Foods India Limited has announced a significant reduction in its income tax demand following an order by the Income Tax Appellate Tribunal (ITAT), Mumbai. However, the Income Tax Department has now filed an appeal with the Bombay High Court challenging this favorable ruling. The disclosure was made to the stock exchanges on 24th April 2026 under Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

The development follows the company's earlier intimation dated 26th June 2025 regarding the receipt of an order under Section 250 from the Office of the Commissioner of Income Tax, Appeal Addl/JCIT(A), Ranchi. The company had filed an appeal at the ITAT, Mumbai, which pronounced its order on 7th November 2025. The Order Giving Effect was subsequently passed by the Assistant Commissioner of Income Tax, OSD TDS Circle 2(2), Mumbai on 30th December 2025.

ITAT Ruling and Tax Demand Reduction

The ITAT, in its order dated 7th November 2025, held that the company cannot be treated as an "assessee in default" under Section 201(1) of the Income-tax Act, 1961, where the underlying tax has been subsequently deducted and deposited. The tribunal further ruled that interest under Section 201(1A) of the Income-tax Act, 1961 shall be restricted up to the date of actual payment of such taxes.

Pursuant to this order, the Assistant Commissioner of Income-Tax (TDS) passed an order giving effect to the ITAT ruling and raised a demand towards interest under Section 201(1A) amounting to INR 2.51 million, significantly lower than the original demand of INR 170.41 million.

Income Tax Department Appeals to Bombay High Court

The Income Tax Department (TDS) has filed an appeal under Section 260A of the Income Tax Act, 1961, with the Hon'ble Bombay High Court challenging the order passed by ITAT. The appeal pertains to assessment years 2016-17 and 2018-19 to 2023-24. The company stated that no settlement has been reached in the proceedings, and the matter remains sub-judice.

The company has confirmed that the appeal challenges the ITAT's favorable ruling that significantly reduced the tax demand. Despite the appeal, the current reduced demand of INR 2.51 million remains in effect unless overturned by the High Court.