Sapphire Foods India Ltd Latest Updates

Proposed Merger with Devyani International In early 2026, Sapphire Foods and Devyani International announced a major strategic merger to consolidate Yum! Brands' presence in India. The deal set a swap ratio of 177:100, meaning Sapphire shareholders will receive 177 shares of Devyani International for every 100 shares they hold. The combined entity will become one of India’s largest QSR operators, managing over 3,000 outlets. The merger process, requiring various regulatory and NCLT approvals, is expected to take approximately 12 to 15 months to complete. Q3 FY26 Financial Performance For the quarter ended December 31, 2025, Sapphire Foods reported its highest-ever quarterly revenue of ₹813.8 crore, a 7.6% year-on-year (YoY) increase. However, the company posted a consolidated net loss of ₹4.8 crore, compared to a profit of ₹12 crore in the same period last year. This loss was attributed to margin pressures and exceptional items totaling ₹11.16 crore, which included costs related to the implementation of new labor codes and merger-related expenses. Operational Expansion During the third quarter, Sapphire Foods continued its aggressive footprint expansion by adding 31 net new restaurants, bringing its total outlet count to 1,028. This included 27 new KFC restaurants and 1 Pizza Hut in India, along with 3 Pizza Hut outlets in Sri Lanka. KFC India remains the strongest performer for the company, contributing significantly to the overall revenue growth. Management and Strategic Focus The company's current focus is on "Choice Therapy" and personalized dining experiences, noting a 52% growth in solo dining occasions since 2021. Post-merger, the management aims to achieve annual synergies of ₹210 crore to ₹225 crore by the second full year of combined operations, primarily through procurement efficiencies and shared technology platforms.