Sapphire Foods India Limited conducted its Q3FY26 earnings conference call on February 6, 2026, reporting improved operational performance across key metrics. The company demonstrated resilience in a challenging market environment, with consolidated revenue reaching INR 811 crores and notable profitability improvements in its flagship KFC brand.

Financial Performance Overview

The company's Q3FY26 results showed mixed performance across its brand portfolio. Overall consolidated revenue grew by 7% year-on-year to INR 811 crores, driven primarily by strong KFC performance and continued growth in Sri Lanka operations.

KFC Brand Delivers Strong Results

KFC emerged as the standout performer during the quarter, achieving significant profitability improvements. The brand's restaurant EBITDA reached 18.8%, marking the best quarterly performance in recent periods. Revenue growth of 11% was supported by strategic initiatives including the introduction of value offerings and operational efficiencies.

The company launched a Chicken Krisper Meal at INR 99 for dine-in and takeaway channels across approximately 33% of stores by January 2026. This initiative, combined with behavior-changing advertising targeting non-users, contributed to improved January performance trends.

Pizza Hut Faces Continued Challenges

Pizza Hut operations experienced headwinds with an 11% revenue decline and negative 12% same-store sales growth. The brand's restaurant EBITDA came in at negative 3.1%, primarily due to negative operating leverage from declining sales.

Notably, Tamil Nadu market continued delivering double-digit delta performance in both SSSG and EBITDA compared to other regions, demonstrating the potential for brand recovery when supported by adequate marketing investment.

Sri Lanka Operations Maintain Momentum

Sri Lanka operations continued their strong trajectory with robust financial and operational metrics. The business achieved 15% revenue growth in INR terms and 11% same-store sales growth, supported by healthy transaction growth.

The company opened 7 new stores in Sri Lanka during calendar year 2025 and expects to maintain similar expansion pace in 2026.

Store Expansion and Strategic Initiatives

During Q3FY26, Sapphire Foods added 31 new stores across its portfolio, comprising 27 KFC outlets, 1 Pizza Hut store in India, and 3 Pizza Hut locations in Sri Lanka. The company's total store count reached 1,028 as of December 31, 2025.

The company achieved a global ESG rating score of 73 out of 100 in the DJSI ESG ratings for 2025, positioning itself as the number 1 QSR brand in India and among the top 3 globally. Sapphire Foods remains the only Indian QSR brand publishing ESG reports under GRI, SASB, and BRSR standards for four consecutive years.

Outlook and Strategic Focus

Management indicated positive momentum continuing into January 2026, with KFC showing improved same-store sales growth trends. The company's innovation pipeline remains robust, with recent launches including the global Saucy concept called "Dunked" showing promising initial results.

For Pizza Hut recovery, management emphasized the importance of coordination between franchisee partners following expected CCI approval for the merger with Devyani International. The company expects this collaboration to enable aligned marketing strategies and operational coordination across overlapping territories.

Sri Lanka operations are expected to maintain high-single-digit to potentially 10% store growth in the coming year, building on the strong foundation established in the market.

Source:

Sapphire Foods India Limited has announced the successful completion of its postal ballot process for shifting the company's registered office from the State of Maharashtra to the State of Haryana. The special resolution received overwhelming support from shareholders, demonstrating strong confidence in the company's strategic decision.

Postal Ballot Results Overview

The postal ballot process concluded on 8th February 2026, with shareholders delivering a decisive mandate in favor of the proposed office relocation. The company reported comprehensive participation across different shareholder categories through the electronic voting mechanism.

Voting Results by Category

The voting results demonstrated strong support across all shareholder categories, with particularly robust backing from institutional investors and promoter groups.

Resolution Details

The special resolution specifically addressed the shifting of the company's registered office from Maharashtra to Haryana, along with consequential amendments to Clause II of the Memorandum of Association. The proposal required approval through a special resolution mechanism due to its significance for the company's corporate structure.

Key aspects of the approved resolution include:

• Complete relocation of registered office from Maharashtra to Haryana
• Amendment of the Memorandum of Association
• Compliance with regulatory requirements for interstate office transfers

Scrutinizer's Certification

Alwyn D'Souza of Alwyn D'Souza & Co., Company Secretaries, served as the appointed scrutinizer for the postal ballot process. The scrutinizer confirmed that the voting process was conducted in full compliance with the Companies Act, 2013, and SEBI Listing Regulations.

The final vote tally showed 311 members voting in favor with 27,41,69,611 votes (99.999%) and 18 members voting against with 2,832 votes (0.001%). No invalid or abstain votes were recorded during the process.

Regulatory Compliance

The postal ballot was conducted in accordance with Section 110 read with Section 108 of the Companies Act, 2013, and Regulation 44 of SEBI Listing Regulations. The company utilized electronic voting exclusively, with MUFG Intime India Private Limited providing the e-voting platform. The resolution became effective on 8th February 2026, completing the regulatory approval process for the office relocation.