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

*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 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -2.01% | +0.14% | +16.33% | -34.22% | -30.99% | -11.23% |


































