EL7.AI
StocksMedium•22 October 2026•
3 min read

Sapphire Foods narrows loss to 1.51 crore rupees as revenue rises

Key Facts

1Consolidated net loss stood at 1.51 crore rupees in the second quarter of fiscal 2027.
2Operating revenue rose 19.6% year on year to about 888 crore rupees.
3Adjusted earnings before interest, taxes, depreciation and amortisation grew 39% to 624 million rupees.
4Same-store sales in India rose 14% at KFC and 5% at Pizza Hut.
5KFC's restaurant operating profit margin improved by 70 basis points to 14.5%.

Sapphire Foods India narrowed its consolidated net loss to 1.51 crore rupees in the second quarter of fiscal 2027, ended September 2026, as operating revenue rose and KFC restaurants delivered improved performance. Operating revenue grew 19.6% from the same period a year earlier, according to company results reported by Press Trust of India via Rediff. Quarterly revenue reached 8,880.27 million rupees, compared with 7,424.37 million rupees in the September 2025 quarter, according to figures published by S&P Capital IQ via MarketScreener. Adjusted earnings before interest, taxes, depreciation and amortisation rose 39% year on year to 624 million rupees for the quarter, according to Investing.com. The increase in adjusted operating profit came as the company continued to post a consolidated net loss, with raw material and energy cost pressures persisting, as noted by the company.

KFC restaurants led same-store sales growth in India, with sales rising 14% during the quarter, according to Reuters via MarketScreener. Pizza Hut's Indian restaurants also recorded a 5% increase in same-store sales over the same period. KFC used promotions to attract demand, including a "buy one, get one free" offer, according to Moneycontrol's account of the brand's activity during the quarter. KFC's restaurant earnings before interest, taxes, depreciation and amortisation margin improved by 70 basis points from a year earlier, according to Press Trust of India. The margin reached 14.5% in the second quarter, alongside sales growth at the brand's existing restaurants. The company, however, cited "inflation in raw material and energy costs and increased marketing investments", according to Reuters' report on the pressures facing KFC's business.

For the first half ended September 2026, the company's operating sales totalled 17,789.87 million rupees, according to S&P Capital IQ. That compares with sales of 15,192.65 million rupees in the six months ended September 2025. Alongside its business results, Sapphire has a proposed merger agreement with Devyani International, according to a report by rating agency ICRA. The proposal would give Sapphire shareholders 177 shares in Devyani for every 100 Sapphire shares they hold. This ratio sets the share exchange between the two companies under the proposed transaction, whose completion remains subject to the required approvals.

Sapphire Foods shares rose 1.7% to 196.23 rupees on India's National Stock Exchange during the 22 October 2026 session, according to Moneycontrol. That price was recorded at around 3:15 p.m. Indian time during the session. ICRA said the proposed merger remained subject to regulatory approvals, as well as approvals from shareholders and creditors. The requirements also include approval of the transaction by the National Company Law Tribunal. On operational expansion, the company maintained its guidance to open between 60 and 80 KFC restaurants in calendar 2026, according to Investing.com.