Sapphire Foods India Ltd

Sapphire Foods India Ltd announced its financial results for the quarter and half-year ended September 30, 2026. The company reported its best quarter in 16 quarters with a 20% year-on-year revenue growth, reaching ₹8,853 million. Adjusted EBITDA also saw a significant surge of 39% year-on-year to ₹624 million, with an improved margin of 7.1%. Sapphire KFC experienced a same-store sales growth (SSSG) of 14%, while Sapphire Pizza Hut India recorded 5% SSSG. The company expanded its restaurant footprint by adding 15 KFC and 1 Pizza Hut in Sri Lanka, bringing the total restaurant count to 1,086. The Sri Lanka business also showed resilience with 9% revenue growth in LKR.

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.

Sapphire Foods India Ltd has announced that its Board of Directors will convene on October 22, 2026. The primary agenda item is to consider and approve the Unaudited Financial Results (Standalone and Consolidated) for the quarter and half-year ended September 30, 2026. The trading window, initially closed from September 25, 2026, will now remain closed until October 24, 2026, extending beyond the results declaration.

Sapphire Foods India Ltd has received a show cause notice from the Deputy Commissioner of State Tax, Ghaziabad, Uttar Pradesh. The notice, dated September 28, 2026, was issued under Section 73 of the Uttar Pradesh GST Act 2017 for the period April 2022 to March 2023. It alleges a short payment of GST amounting to INR 21.45 million, identified through scrutiny of GST returns. The company asserts that the claim is not maintainable and anticipates no material impact on its financial, operational, or other activities. Sapphire Foods is currently evaluating the notice and plans to take necessary steps to respond.

Sapphire Foods India Limited has received a show cause notice from the Assistant Commissioner of State Tax, Vadodara, Gujarat. The notice, dated September 26, 2026, pertains to the period April 2022 to March 2023 and alleges incorrect availment and utilization of Input Tax Credit (ITC) amounting to INR 14.03 million under the Gujarat GST Act 2017. The company asserts that the claim is not maintainable and does not anticipate any material impact on its financial or operational activities. Sapphire Foods is evaluating the notice and will take necessary steps to respond. While the amount is below the disclosure threshold, the company notes that cumulative related matters might breach the limit.

Sapphire Foods India Limited has received a show cause notice from the Deputy Commissioner, DGSTO-4, Bengaluru, Karnataka, for the period April 2022 to March 2023. The notice, issued under the Karnataka GST Act 2017, alleges incorrect availment and utilization of Input Tax Credit (ITC) and short payment of tax, amounting to ₹19.99 crore (INR 199.90 million). The company states that the claim is not maintainable and does not anticipate any material impact on its financial or operational activities. Sapphire Foods is evaluating the notice and will take necessary steps to respond.

Sapphire Foods India Limited has announced the closure of its trading window from September 25, 2026, until 48 hours after the declaration of financial results for the quarter and half-year ending September 30, 2026. This measure is in compliance with SEBI (Prohibition of Insider Trading) Regulations, 2015. During this period, designated persons and their immediate relatives are prohibited from trading in the company's equity shares. The specific date for the board meeting to approve these financial results will be communicated later.

Sapphire Foods India Ltd received a show cause notice from the Deputy Commissioner (CT), Chennai, dated September 21, 2026. The notice, issued under Section 73 of the Tamil Nadu SGST Act 2017, pertains to the period April 2022 to March 2023. It alleges inadvertent availment and utilization of Input Tax Credit (ITC), along with short payment of interest and tax, amounting to ₹214.65 million. The company asserts that the claim is not maintainable and anticipates no material impact on its financial, operational, or other activities. Sapphire Foods is currently evaluating the notice and plans to take necessary steps to respond.

Sapphire Foods India Ltd has received a show cause notice from the Deputy Commissioner (CT), Chennai, Tamil Nadu, dated September 21, 2026. The notice, issued under Section 73 of the Tamil Nadu SGST Act 2017, alleges inadvertent availment and utilization of Input Tax Credit (ITC) and short payment of tax for the period April 2023 to March 2024, amounting to INR 5,168.38 million. The company states that the claim is not maintainable, and there will be no material impact on its financial, operational, or other activities. Sapphire Foods is currently evaluating the notice and plans to take necessary steps to respond.

Sapphire Foods India Ltd and Devyani International Limited have jointly filed an application with the Competition Commission of India (CCI). This filing is a step in the regulatory approval process for the proposed merger between the two companies, as outlined in their Amended Scheme of Arrangement. The merger, previously approved by the Board of Directors on August 26, 2026, is proceeding under the Companies Act, 2013, and the Competition Act, 2002. This action signifies progress in the planned consolidation of the two entities.