Sapphire Foods India Ltd

Litigation Update

• ITAT dismissed ITD appeal against favourable CIT(A) order for Gamma Lanka; order received 13 August 2026.
• Gamma Lanka is a wholly owned subsidiary of Sapphire Foods India Limited.

Business Overview

• YUM's franchisee operator in India, Sri Lanka, Maldives with KFC, Pizza Hut, Taco Bell.
• Total outlets 1,074; KFC 591, Pizza Hut 472, Taco Bell 11.
• Board-approved merger scheme with Devyani International; approvals pending.
• Strategic emphasis on smaller omnichannel formats and delivery-led growth.

Operational Highlights

• Q1 FY27 restaurant sales ₹8,882 mn; EBITDA ₹1,406 mn; EBITDA margin 15.8%.
• Adj EBITDA ₹749 mn; Adj EBITDA margin 8.4%.
• Net restaurant additions: KFC 16, Pizza Hut 5, Sri Lanka 1 in Q1 FY27.
• Expansion plan: 60–80 stores annually; 1,000 sq ft Pizza Hut densification.
• Delivery contribution rose to 43% of revenue in Q1 FY27.
• Digital kiosks deployed across 75%+ of estate; own-delivery growth.

Financial Performance

• Q1 FY27 revenue 8,882 mn up 15% YoY.
• FY26 EBITDA 4,804 mn; margin 15.4%.
• PBT before exceptional items 273 mn; margin 3.1%.
• KFC India: 3M FY27 EBITDA margin ~16.9%.
• Pizza Hut India: 3M FY27 EBITDA margin ~-3.6%.
• Sri Lanka: 3M FY27 EBITDA margin ~12%.
• Shareholding pattern as of 30 Jun 2026: Promoters 26.1%, FPIs 25.3%, Domestic MF/Insurance 39.2%, Others 9.4%.

Strategic Priorities & Outlook

• PACE SETTER cost budgeting for permanent cost reduction.
• Optimize restaurant size; expand smaller omnichannel formats.
• Delivery share growth from 21% (FY19) to 43% (Q1 FY27).
• Target 60–80 stores per year; focus on expansion.
• Push density via 1,000 sq ft Pizza Hut formats (10–15% of new restaurants).

Governance & Leadership

• Board approved merger with Devyani International; subject to regulatory approvals.
• CEO Vikrant Vohra; COO Saurabh Girdhar; CFO Vijay Jain; senior leadership listed.
• Board includes Sunil Chandiramani (Chairman) and Sanjay Purohit (Group CEO).
• Shareholding pattern update provided as of 30 Jun 2026.

Risks

• Pizza Hut India EBITDA negative; profitability risk for the segment.

Consolidated results

• Revenue from operations Rs 8,909.60m; total income Rs 8,966.31m.
• Profit before tax Rs 161.67m; tax Rs 21.45m; profit after tax Rs 140.22m.
• Consolidated EPS Rs 0.44 (basic and diluted).

Standalone results

• Revenue from operations Rs 7,560.72m; standalone PAT Rs 128.67m.
• Standalone EPS Rs 0.40 basic; Rs 0.40 diluted.

Merger with Devyani International

• Amalgamation scheme: 177 transferee shares for 100 transferor shares.
• Appointed Date 01 Apr 2026; subject to regulatory approvals.
• NSE no objection; BSE no adverse observations.

HQ shift & approvals

• Registered office moved from Maharashtra to Haryana; new address SCO 328, Sector 9, Panchkula.
• RD approval received 21 Apr 2026; ROC Haryana registration on 18 May 2026.
• Scheme received NSE no objection; BSE no adverse observations.

Audit status

• Consolidated and standalone results are unaudited; Deloitte performed a limited review.

Meeting Details

• Earnings call for Q1 FY27 on Friday, 24 July 2026 at 4:30 PM IST.
• Type: group, virtual earnings call for Analysts/Investors.
• Organiser: Sapphire Foods India Limited.
• Company participants: Whole Time Director & Group CEO; Executive Director & CFO; Head, Investor Relations.
• Purpose: discuss Q1 FY27 financial performance.
• Invitation available on company website with intimation.

Meeting Details

• Date and time: Friday, 24 July 2026 at 4:30 PM IST.
• Type and mode: group earnings call, virtual.
• Event/organiser: Q1 FY27 Earnings Call.
• Purpose: discuss the company's Q1 FY27 financial performance.

Participants

• Company: Whole Time Director & Group CEO.
• Executive Director & CFO.
• Head, Investor Relations.

Purpose

• Discuss Q1 FY27 earnings and outlook with investors and analysts.

Additional Notes

• Pre-registration link for the call.
• Access numbers for attendees provided.
• Invitation and related materials to be uploaded on the company website.

Meeting Details

• Board meeting scheduled for Friday, 24 July 2026 (time/venue not disclosed).

Key Agenda Items

• Approve unaudited standalone and consolidated financial results for the quarter ended 30 June 2026.

Other Notes

• Trading window remains closed until 27 July 2026 (48 hours post results).