Sapphire Foods Q3FY26: Revenue Grows 7% to ₹8.14B, Net Loss ₹48M on Exceptional Items

3 min read     Updated on 02 Feb 2026, 07:51 PM
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Overview

Sapphire Foods India Limited reported Q3FY26 results showing 7% revenue growth to ₹8,138.29 million but posted a net loss of ₹48.08 million compared to ₹127.32 million profit in Q3FY25. The company faced exceptional items totaling ₹111.63 million including labour code implementation costs and merger expenses. Despite challenges, the company added 31 restaurants reaching 1,028 outlets total, with KFC showing strong performance at 18.8% Restaurant EBITDA while Pizza Hut India declined 11%.

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*this image is generated using AI for illustrative purposes only.

Sapphire Foods India Limited has announced its Q3FY26 financial results, demonstrating revenue growth alongside profitability challenges. The company reported consolidated revenue of ₹8,138.29 million compared to ₹7,565.37 million in the corresponding quarter last year, while posting a net loss of ₹48.08 million against a profit of ₹127.32 million in Q3FY25.

Q3FY26 Financial Performance

The latest quarterly results show mixed performance with revenue growth offset by operational challenges and exceptional items:

Financial Metric: Q3FY26 Q3FY25 Change
Revenue from Operations: ₹8,138.29 million ₹7,565.37 million +7.57%
Total Income: ₹8,208.90 million ₹7,670.41 million +7.02%
Total Expenses: ₹8,130.80 million ₹7,502.22 million +8.38%
Profit Before Tax: Loss ₹33.53 million Profit ₹168.19 million Decline
Net Loss/Profit: Loss ₹48.08 million Profit ₹127.32 million Decline

The company achieved restaurant sales of ₹8,112 million with 7% year-over-year growth. Consolidated Restaurant EBITDA grew by 5% year-over-year with a margin of 15.0%, while Adjusted EBITDA declined 5% to ₹774 million with a margin of 9.5%.

Business Performance Highlights

Sapphire Foods demonstrated strong operational metrics during the quarter:

Operational Metric: Q3FY26 Performance
Restaurant Additions: 31 net additions
Total Restaurant Count: 1,028 outlets
KFC Revenue Growth: +11%
Pizza Hut India Revenue: -11% decline
Sri Lanka Revenue Growth: +15% in LKR

KFC India showed significant improvement with Restaurant EBITDA at 18.8%, while Pizza Hut Tamil Nadu continued delivering positive double-digit delta performance. The company added 27 KFC restaurants, 1 Pizza Hut in India, and 3 Pizza Hut outlets in Sri Lanka during the quarter.

Exceptional Items Impact

The company recorded exceptional items totaling ₹111.63 million during Q3FY26:

Exceptional Item: Amount (₹ Million) Description
Labour Code Impact: 80.26 New Labour Codes implementation cost
Merger Expenses: 31.37 Scheme of Arrangement related costs
Total Exceptional Items: 111.63 Non-recurring charges

The Labour Code impact relates to the Government of India's notification of four consolidated Labour Codes, affecting employee benefit obligations.

Nine-Month Performance Overview

For the nine months ended December 31, 2025, the company showed consistent revenue growth:

Parameter: 9M FY26 9M FY25 Growth
Consolidated Revenue: ₹23,330.94 million ₹21,705.23 million +7.49%
Restaurant Sales: ₹23,261 million ₹21,655 million +7%
Adjusted EBITDA: ₹1,772 million ₹2,109 million -16%
Consolidated Net Loss: ₹193.33 million Profit ₹146.80 million Decline

Regulatory Compliance and Corporate Actions

The Board of Directors approved several significant decisions during their meeting on February 6, 2026:

Decision Type: Details
Merger Approval: Scheme of Arrangement with Devyani International Limited
Share Exchange Ratio: 177 Devyani shares for every 100 Sapphire shares
Appointed Date: April 1, 2026 (subject to approvals)
New Director: Mr. Kushal Agarwal as Non-Executive Nominee Director

Pursuant to Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, the company has made available its Press Release and Earnings Presentation for Q3FY26 on its website. Mr. Kushal Agarwal, a Director at TR Capital with 16 years of investing experience, has been appointed as Additional Director representing promoter shareholder Sapphire Foods Mauritius Limited. The company conducted its quarterly earnings conference call on February 6, 2026, featuring senior management to discuss the Q3FY26 performance with analysts and investors.

Historical Stock Returns for Sapphire Foods

1 Day5 Days1 Month6 Months1 Year5 Years
-2.01%+0.14%+16.33%-34.22%-30.99%-11.23%

Sapphire Foods India Schedules Investor Meeting on January 16, 2026 for Proposed Devyani International Merger

1 min read     Updated on 13 Jan 2026, 07:07 PM
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Reviewed by
Radhika SScanX News Team
Overview

Sapphire Foods India Limited has scheduled an analyst and institutional investor meeting on January 16, 2026, to discuss its proposed merger with Devyani International Limited. The virtual meeting will be conducted with HDFC Mutual Fund, with the company confirming no price sensitive information will be shared. The investor presentation has been made publicly available on stock exchanges and the company website.

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*this image is generated using AI for illustrative purposes only.

Sapphire Foods India Limited has announced a scheduled analyst and institutional investor meeting to discuss its proposed merger with Devyani International Limited. The meeting is set to take place on January 16, 2026, as part of the company's regulatory disclosure obligations.

Meeting Details

The interaction will be conducted as a virtual one-to-one meeting with HDFC Mutual Fund representatives. The company has indicated that the scheduled date may be subject to change due to exigencies on the part of either the company or the analysts and investors.

Parameter: Details
Meeting Date: January 16, 2026
Participant: HDFC Mutual Fund
Format: Virtual/One-to-One
Purpose: Proposed merger discussion

Regulatory Compliance

Sapphire Foods India Limited has submitted this information pursuant to Regulation 30 and other applicable provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements), Regulations 2015. The company has emphasized that no unpublished price sensitive information will be shared or discussed during the meeting with the institutional investor.

Information Accessibility

The company has made the investor presentation available to the public through multiple channels. The presentation has been uploaded on both stock exchanges and the company's official website at sapphirefoods.in/investors-relation for the information of members and the general public.

Corporate Communication

The formal intimation was signed by Sachin Dudam, Company Secretary and Compliance Officer of Sapphire Foods India Limited, and was digitally submitted on January 13, 2026. The communication was addressed to both the National Stock Exchange of India Limited and BSE Limited as part of the company's listing obligations.

Historical Stock Returns for Sapphire Foods

1 Day5 Days1 Month6 Months1 Year5 Years
-2.01%+0.14%+16.33%-34.22%-30.99%-11.23%

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1 Year Returns:-30.99%