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Earnings Call Transcript

Sapphire Foods India Earnings Call Transcript: Key Takeaways

Sapphire delivered record revenue growth driven by aggressive value-pricing and store expansion, though severe inflationary pressures are squeezing restaurant-level margins.

Highlights
Revenue growth20% YoY to ₹885 Cr; best quarterly growth since COVID.
MarginsConsolidated adjusted EBITDA margin up 100 bps to 7.1%.
Demand visibilityStrong transaction growth supported by everyday value-pricing strategy.
Management confidenceAggressive on growth; cautious on pricing despite high inflation.

Growth

Revenue rose 20% YoY to ₹885 Cr, fueled by 14% SSSG in KFC and 5% in Pizza Hut.

Outlook

Management expects cost inflation to peak in Q3 FY27 while maintaining store expansion targets.

Risks

KFC margins face pressure from 26% minimum wage hikes and double-digit utility cost inflation.

Last quarter's promises, checked

Delivered

  • Guided KFC store expansion → delivered 16 new stores (BEAT)
  • Target positive SSSG across all brands → delivered positive SSSG in KFC, PH, and SL (BEAT)
  • Maintain high dine-in/takeaway mix → delivered 59% mix for KFC (BEAT)

Partly delivered

  • Guided 60-80 KFC stores annual target → delivered 16 stores in Q1 (PARTIAL)

Missed

  • Target 18-20% restaurant level margins → delivered 16.9% for KFC (MISS)
  • Revenue growth target 20% → delivered 15% (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
₹200.22
Market cap
₹6,435 Cr
Revenue (annual)
₹3,125 Cr
Net profit (annual)
₹-31.96 Cr
P/E (TTM)
-976.3×Sector 43.4×
Promoter holding
26.07%+0.00% QoQ
FII holding
24.03%Current quarter

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

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