SAPPHIRE
Large CapSapphire Foods India Limited
Consumer
YUM’s franchisee operator in India, Sri Lanka & Maldives, operating 1052 restaurants (575 KFC, 466 Pizza Hut, 11 Taco Bell) as of March 31, 2026. It is Sri Lanka’s largest international QSR chain.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust is acceptable, price trend argues for patience, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 5/100PAT -750% YoY · Rev +11% YoY · margin expansion
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹792 Cr | +11.4% | -2.7% |
| EBITDA | ₹124 Cr | +17.0% | -7.5% |
| Operating margin | 16.0% | +100 bps | +0 bps |
| PAT | ₹-13 Cr | -750.0% | NDF |
| PAT margin | -1.6% | -192 bps | -103 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Q4 FY26 Restaurant Sales grew 11% YoY to ₹7,898 Mn, with EBITDA up 10% to ₹1,249 Mn. However, FY26 EBITDA declined 2% YoY to ₹4,804 Mn, and Pizza Hut India's Restaurant EBITDA turned negative at -3.3% for FY26.
While Q4 FY26 showed some sales and EBITDA growth, the full-year FY26 performance indicates a decline in overall EBITDA and a concerning negative Restaurant EBITDA for Pizza Hut India. KFC's ADSPR also declined, suggesting underlying demand challenges.
Omni Channel Mix (FY26)
Latest issuer-disclosed distribution across 3 reported categories.
KFC Expansion
Management aims to continue the current pace of expansion, adding 60-80 KFC stores per year.
Sri Lanka Operations
Restaurant Related Revenue grew 18% YoY in INR for FY26, with 9 net restaurant additions.
Delivery Channel Growth
Revenue from Delivery increased from 21% in FY19 to 44% in Q4FY26, indicating strong channel shift.
KFC Taste Innovations
Launch of global “Saucy” concept in Dunked in Jan’26 and “KFC Shawowrma” innovation to drive customer frequency.
Total Restaurants
1052 total restaurants across India, Sri Lanka, and Maldives as of March 31, 2026, with 89 net additions in FY26.
KFC Restaurants
575 KFC restaurants as of March 31, 2026, with 73 net additions in FY26.
Pizza Hut Restaurants
341 Pizza Hut restaurants as of March 31, 2026, with 7 net additions in FY26.
Sri Lanka Restaurants
136 restaurants as of March 31, 2026, with 9 net additions in FY26.
Cost Optimization Initiatives
Implementation of zero-based cost budgeting and the PACE SETTER program for benchmarking costs among restaurants.
Optimized Restaurant Size
Focus on smaller sized omni-channel restaurants, reducing average size by ~45% for both KFC and Pizza Hut since FY19.
Pizza Hut Profitability Decline
Pizza Hut India's Restaurant EBITDA % turned negative to -3.3% in FY26, a significant drop from 2.4% in FY25.
KFC Average Daily Sales per Restaurant (ADSPR) Decline
KFC India's ADSPR decreased from ₹114k in FY25 to ₹110k in FY26, indicating potential pressure on same-store sales.
Overall EBITDA Margin Contraction
Company-wide EBITDA margin for FY26 declined by 170 bps YoY to 15.4%, despite revenue growth.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The presentation provides Q4 FY26 vs Q4 FY25 and FY26 vs FY25 data, making YoY the most relevant comparison for assessing annual performance and quarterly trends against the previous year.
Restaurant Sales Growth
Q4 FY26: +11% YoY to ₹7,898 Mn; FY26: +8% YoY to ₹31,159 Mn.
EBITDA Margin
Q4 FY26: 15.8% (down 20 bps YoY); FY26: 15.4% (down 170 bps YoY).
KFC India Average Daily Sales per Restaurant (ADSPR)
FY26: ₹110k (down from ₹114k in FY25).
KFC India Restaurant EBITDA %
FY26: 16.3% (down 100 bps YoY from 17.3%).
KFC Brand Priorities
Focus on craveable taste innovations, value offerings, frictionless customer experience (digital kiosks), and continued accessibility through expansion.
Pizza Hut Brand Priorities
Emphasis on differentiated Dine-In experience, hot & fresh delivery, competitive value, taste superiority, and mass media advertising.
Proposed Merger
The board of directors of Sapphire Foods & Devyani International approved a merger scheme on January 1, 2026, subject to statutory and regulatory approvals.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Pizza Hut India Restaurant EBITDA % | -3.3% (FY26) | Signs of improvement towards positive profitability and sustained growth in the segment. |
| KFC India Average Daily Sales per Restaurant (ADSPR) | ₹110k (FY26) | Stabilization and reversal of the declining trend in ADSPR, indicating healthy demand. |
| Overall EBITDA Margin | 15.4% (FY26) | Improvement in margins, especially given stated cost optimization initiatives and restaurant size optimization. |
| Devyani International Merger Approvals | Board approved (Jan 1, 2026) | Progress on obtaining statutory and regulatory approvals for the proposed merger. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
42NeutralSMA20 -14.9% / mo · near 52W low
Technical chart
SAPPHIREdaily · 3Y-30.6%Technical trend read
Mixed signalsSignals are conflicting — long-term trend unclear. RSI 47. Wait for confirmation.
- SMA20 falling (~1.5% over last month) — short-term momentum negative.
- RSI(14) at 47 — rising, no extreme reading.
- MACD below signal but histogram contracting — bearish momentum easing.
- 34% off 52W high · 27% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 4.8%.
- Cash flow contributes 9/10 to the score.
- Growth contributes 13/25 to the score.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 7/30; verify the latest quarterly trend.
- Balance sheet is weaker at 5/15; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 27th percentile of the scored universe and 26th percentile within Consumer. Main check: financial discipline is weak at 28/100.
Healthy Trust Lite: Promoter pledge is zero. Key concern: 3 latest quarters had PAT decline worse than 25% YoY.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 26th pctile, median 67 · Large: 16th pctile, median 74
131 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 4.8%.
- ▸6 years of positive FCF.
- ▸4/4 latest quarters had positive YoY revenue growth.
Trust risks
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸Debt/equity is 1.02.
- ▸ROCE is low at 4%.
- ▸ROE is low at -1%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- —
- P/B
- 4.09
- EV/EBITDA
- 8.22
- Market Cap
- 5698.00Cr
Profitability
- ROE
- -1.04%
- ROCE
- 3.99%
- ROA
- -0.98%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 25.00%
- EPS 5Y
- 13.00%
- Revenue 3Y
- 11.00%
- EPS 3Y
- -13.00%
Balance Sheet
- Debt/Equity
- 1.02
- Interest Coverage
- 3.85×
- Altman Z
- 4.00
- Book Value
- 43.30
Cash Flow
- FCF Yield
- 4.81%
- FCF Positive Y
- 6/5
- OCF
- 507.00 Cr
- EPS TTM
- -0.99
Shareholding
- Promoter Hold
- 26.06%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 16%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.