Sapphire Foods consol loss narrows to ₹1.5 Cr YoY; slips from Q1 profit on Navratri hit

Sapphire Foods' consolidated revenue grew 19.6% YoY to ₹888.0 Cr in Q2 FY27 (quarter ended 30 September 2026), essentially flat sequentially (-0.3% QoQ) against Q1 FY27's ₹891.0 Cr. The group swung from a ₹14.0 Cr net profit in Q1 FY27 to a ₹1.5 Cr consolidated net loss this quarter — but that loss is 88% narrower than the ₹12.8 Cr loss booked in Q2 FY26, a quarter management had attributed to the Navratri fasting period denting chicken-led KFC sales, a seasonal dynamic that plausibly repeated this quarter too. The print carried a ₹1.3 Cr exceptional charge tied to the pending Devyani International amalgamation scheme (absent a year ago); stripping it out, adjusted PAT was near-breakeven at roughly -₹0.2 Cr, a ~98.5% improvement over the adjusted year-ago loss, versus 88.2% on a reported basis — the underlying trajectory is better than the headline loss suggests. Standalone (India-only) results told a materially weaker story — a ₹5.7 Cr net loss versus the ₹1.5 Cr consolidated loss — because the Sri Lanka/Maldives operations, held via Gamma Pizzakraft Lanka, French Restaurants and Gamma Island Food, contributed roughly ₹3.4 Cr of combined PAT for the quarter per the auditor's note, while the India standalone business stayed in deeper loss (narrowing from ₹17.3 Cr a year ago). EBITDA margin (ex-other income) was 14.3% of operating revenue, up ~55 bps from 13.75% a year ago but down ~140 bps from Q1 FY27's 15.7%, consistent with the sequential swing to a loss. The filing discloses no store-addition count, same-store-sales growth or segment detail, so there is no way to check this quarter against management's standing guidance (60-80 KFC store additions a year, a cautious Pizza Hut rollout, 8-10% Sri Lanka SSSG) from these financials alone, and no investor press release was available to cross-check management's own framing of the quarter. Separately, the company disclosed multiple GST show-cause notices between late September and 22 October 2026 (amounts cited inconsistently across exchange filings, roughly ₹14-21 Cr each); none appear reflected as a provision in this quarter's P&L. Analyst consensus estimates specific to this quarter could not be located at print time, so the beat/miss call against Street is unknown.