Sapphire Foods Q2 Revenue Jumps 20% to ₹888 Crore; KFC Leads Growth

Sapphire Foods India, which operates KFC and Pizza Hut restaurants in India and Sri Lanka, reported a 19.6% year-on-year increase in revenue from operations to ₹888 crore in Q2 FY27, compared with ₹742.4 crore in the corresponding quarter last year. 

The company’s consolidated net loss narrowed to approximately ₹1.5 crore from ₹12.8 crore a year earlier, supported by stronger sales across its restaurant businesses.

The company’s EBITDA rose 23.5% year-on-year to ₹126 crore, compared with ₹102 crore in Q2 FY26. EBITDA margin expanded to 14.2% from 13.7% in the year-ago quarter, reflecting improved operating performance despite inflation in raw material and energy costs and higher marketing investments.

KFC emerged as a key growth driver during the quarter, recording 26% revenue growth, its highest quarterly growth in the past 16 quarters. Same-store sales growth (SSSG) stood at 14%, supported by double-digit transaction growth and value-led promotional offers.

The brand continued to focus on affordability and customer acquisition through offers such as the ₹99 Chicken Krisper Burger Meal, the ₹149 Thalaiva Meal in Tamil Nadu and buy-one-get-one promotions on chicken buckets. These initiatives helped drive footfall and transactions amid a competitive quick-service restaurant market.

KFC’s restaurant EBITDA margin improved by 70 basis points year-on-year to 14.5%, despite cost inflation and increased marketing expenditure.

On the other hand, Pizza Hut India also showed improving momentum, with revenue growing 7% year-on-year and same-store sales increasing 5%, the brand’s highest SSSG in seven quarters. Same-store transaction growth remained in double digits, with positive growth across dine-in and takeaway channels.

Value-driven offerings, including its ₹99 four-course meal and buy-one-get-one deals, supported the improvement in sales. However, restaurant EBITDA margin remained negative at -2.8%, reflecting continued profitability pressures, including higher energy costs.

Sapphire Foods added 15 KFC restaurants during Q2 FY27, along with one Pizza Hut outlet in Sri Lanka, taking its total restaurant network to 1,086 outlets as of September 30, 2026.

Its Sri Lanka business recorded 9% revenue growth in local currency terms, with same-store sales increasing 5%. The quarter’s performance highlights the contribution of value-led promotions, transaction growth and continued network expansion to Sapphire Foods’ business. While KFC delivered strong growth and Pizza Hut showed signs of recovery, improving restaurant-level profitability remains an important priority for the company.