Sapphire Foods Q2 Loss Narrows 88% as Sales Grow

the operator of KFC and Pizza Hut restaurants, reported improving Q2 FY27 results, with consolidated net loss narrowing 88.2% YoY to ₹1.51 crore from ₹12.79 crore. Revenue from operations increased 19.6% to ₹888 crore, marking its strongest revenue growth in 16 quarters. EBITDA grew 21.1% to ₹128.61 crore, while EBITDA margin improved to 14.5% from 14.3%. Adjusted EBITDA before Ind AS 116 increased 39% to ₹62.4 crore, reflecting improving operating efficiency. KFC India remained the key growth driver, with revenue increasing 26% YoY and same-store sales growing 14%. Pizza Hut India recorded 5% same-store sales growth, its strongest performance in seven quarters. The company operated 1,086 restaurants as of September 2026, including 606 KFC and 342 Pizza Hut outlets in India. From a research perspective, improving same-store sales indicate stronger customer demand and better utilisation of existing restaurants. Value-focused offerings and increased dine-in traffic appear to be supporting growth. However, profitability remains a concern. Pizza Hut India's restaurant EBITDA margin stood at negative 2.8%, while depreciation and finance costs continued to weigh on consolidated earnings. Investors should monitor same-store sales growth, restaurant margins, expansion costs and progress towards consistent profitability. Learning Takeaway: In the QSR industry, same-store sales growth is an important indicator of underlying demand. However, sustainable profitability depends on operating margins, store economics and cost management. Disclosure: This post is for educational purposes only and does not constitute investment advice. Any holdings or conflicts of interest should be disclosed separately.