Editor’s Note
Sapphire Foods India, a major franchisee for KFC and Pizza Hut, has reported mixed H1 FY26 results. While revenue grew, the company swung to a net loss. This update also notes a change in the board’s composition.
Sapphire Foods India, the operator of KFC and Pizza Hut restaurants in India and Sri Lanka, has reported its financial results for the first half of fiscal year 2026, showing revenue growth but a shift to net loss. The company also announced a change in its board composition.
Sapphire Foods India reported the following consolidated results for H1 FY2026:
Metric | H1 FY2026 | H1 FY2025 | YoY Change
— | — | — | —
Revenue from Operations | 15,192.65 | 14,139.86 | +7.45%
Net Profit/(Loss) After Tax | (145.25) | 19.48 | N/A
*Note: All figures in million rupees*
The company’s revenue from operations grew by 7.45% year-over-year. However, Sapphire Foods swung to a net loss of Rs 145.25 million in H1 FY2026, compared to a profit of Rs 19.48 million in the same period last year.
On a standalone basis, Sapphire Foods India reported:
– Revenue: Rs 12,764.67 million (H1 FY2026) vs Rs 12,080.91 million (H1 FY2025)
– Net Loss: Rs 207.06 million (H1 FY2026) vs Rs 61.19 million (H1 FY2025)
The standalone results also reflect a growth in revenue but a significant increase in net loss.
Basic Earnings Per Share (Consolidated): Negative Rs 0.45
The company announced that Mr. Rohitt Mutthoo has resigned from his position as Non-Executive Nominee Director. Mr. Mutthoo represented the promoter shareholder Sapphire Foods Mauritius Limited on the board. The resignation, cited as being for personal reasons, was accepted by the Board on October 17, 2025.
While Sapphire Foods India continues to grow its revenue, the shift to a net loss position may raise concerns among investors. The company appears to be facing challenges in maintaining profitability despite top-line growth.
Investors and analysts may look for more details on the company’s strategy to return to profitability while maintaining its growth trajectory in the quick-service restaurant sector. The resignation of a board member representing a major shareholder may also attract attention and raise questions about the company’s governance and strategic direction.
