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Earnings Call Transcript

Sapphire Foods India Earnings Call Transcript: Key Takeaways

Sapphire Foods reported a strong Q1 FY27 with 15% revenue growth and 37% Adjusted EBITDA growth, though Sri Lankan operations face persistent inflationary and currency headwinds.

Highlights
Revenue growth15% revenue growth, strongest in 11 quarters.
MarginsConsolidated Adj. EBITDA margin 8.4%; Sri Lanka margins under pressure.
Demand visibilitySimilar demand environment; KFC seeing recruitment through value meals.
Management confidenceBalanced; optimistic on KFC India, cautious on Sri Lanka.

Growth

Revenue up 15% led by KFC (17%) and Sri Lanka (13% LKR). Positive SSSG across all brands.

Outlook

KFC expansion remains steady at 60-80 stores annually; Pizza Hut expansion remains cautious.

Risks

High energy/fuel costs and Sri Lankan currency depreciation impact restaurant EBITDA margins.

Last quarter's promises, checked

Delivered

  • Guided 60-80 KFC store additions annually → delivered 73 stores (= BEAT)
  • Guided positive SSSG for KFC → delivered 4% SSSG (6% ex-Navratri) (= BEAT)
  • Guided 150-store pilot of ₹99 value meals → delivered rollout to all stores except TN (= BEAT)

Partly delivered

  • Guided Sri Lanka store additions → delivered 9 stores (highest in 3 years but cautious) (= PARTIAL)
  • Guided 12-15 month merger timeline → delivered process on track but subject to NCLT/CCI (= PARTIAL)

Missed

  • Guided Pizza Hut revenue growth → delivered -7% revenue decline (= MISS)
  • Guided Pizza Hut restaurant EBITDA → delivered -3.3% (= MISS)
Source

Earnings Call Transcript filed with NSE, NSE: SAPPHIRE. Summary written with AI assistance from the document.

Read the document ↗

Sapphire Foods India Ltd: key numbers

Share price
₹223.61
Market cap
₹7,186 Cr
Revenue (annual)
₹3,125 Cr
Net profit (annual)
₹-31.96 Cr
P/E (TTM)
-402.2×Sector 43.7×
Promoter holding
26.07%+0.00% QoQ
FII holding
25.25%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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