Editor’s Note
This summary is based on a research report by Motilal Oswal. It highlights Sapphire Foods’ Q3 FY26 results, noting a return to positive same-store sales growth for KFC, while its Pizza Hut franchise continues to face challenges.
Sapphire Foods India (SAPPHIRE) reported revenue growth of 8% year-on-year (in line with estimates) in the third quarter of FY26, supported by a 7% YoY increase in store count. KFC sales growth stood at 11% YoY, with same-store sales growth (SSSG) returning to positive territory after eight quarters at +1% (estimated flat; Devyani International reported -2.9%). The Pizza Hut (PH) franchise performance remained weak, with revenue declining 11% YoY as same-store sales fell 12% (estimated -10%; Devyani -9.1%). The Sri Lanka operations posted healthy revenue growth of 16% YoY (+15% in Sri Lankan Rupee terms), driven by 11% LKR SSSG and 6% store growth.