Sapphire Foods India Ltd. share price target

Sapphire Foods reported an all-round performance in Q1FY27, with consolidated revenue growing 15% y/y, aided by strong SSSG across brands. KFC India posted 5% SSSG, while Sri Lanka delivered a robust 9% SSSG.

Sapphire Foods India (SAPPHIRE) reported revenue growth of 15% YoY (highest in the last 11 quarters; in line) in 1QFY27. KFC sales grew 17% YoY with SSSG of 5% (in line).

Sapphire Foods India (SAPPHIRE) reported a revenue growth of 11% YoY (in line) in 4QFY26. KFC sales grew 15% YoY with an SSSG of 4% (est. 4%; ex-Navratri: 6%).

Sapphire Foods reported a sequential improvement in profitability in Q3FY26, led by a stronger performance in the KFC business

Sapphire Foods India (SAPPHIRE) reported revenue growth of 8% YoY (in line) in 3QFY26, backed by a 7% YoY increase in store count. KFC sales growth was at 11% YoY, with SSSG returning to positive after eight quarters at +1% (est. flat; Devyani at -2.9%).

Sapphire Foods India (SAPPHIRE) reported revenue growth of 7% YoY (in line) in 2QFY26, backed by a 10% YoY increase in store count. KFC sales grew 7% YoY and same-store sales declined 3% (in line).

Sapphire Foods India (SAPPHIRE) reported revenue growth of 8% YoY (in line) in 1QFY26, driven by a 10% YoY increase in store count. KFC’s revenue grew 11% YoY, supported by 15% store expansion.

Sapphire’s Q4 EBITDA was in line with our muted expectations. Overall/India revenue grew 13%/10%, largely led by store additions in India and a ~31% growth rebound in Sri Lanka.

Sapphire Foods India (SAPPHIRE) reported revenue growth of 14% YoY (in line) in 3QFY25, driven by a 13% YoY increase in store count. KFC revenue grew 12% YoY, supported by 22% store expansion, though offset by a 3% decline in same-store sales (est. -3.5%).

Sapphire Foods (Sapphire) reported 10% YoY revenue growth and 14% YoY store growth in 1QFY25. The store growth was offset a decline of 6%/7% in same-store sales.

2QFY24 revenue growth of 14% YoY was decent and largely driven by retail expansion (+24% YoY). Revenue performance in KFC has been strong; 19% YoY, flat SSSG despite additional month of vegetarian days, while it was weak for PH India; -20% YoY SSSG (vs -1% SSSG Dominos).

1QFY24 revenue growth of 20% YoY was decent and largely driven by retail expansion (+26% YoY) as SSSG trajectory continued to be under pressure (continued pressure on discretionary demand). Both KFC and PH India witnessed demand sluggishness with higher pressure on PH India (-9% SSSG; KFC SSSG was flat).

4QFY23 revenue growth of 13% YoY was decent in the current context (continued pressure on discretionary demand post Diwali). Both KFC and PH India witnessed demand sluggishness with higher pressure on PH India (-2% SSSG; KFC SSSG: +2%). We like the increased investments towards increasing relevance, awareness, innovation etc. to revive demand conditions for its brands.

3QFY23 revenue growth of 6% QoQ was decent in the current context (pressure on discretionary demand post Diwali). Both KFC and PH India witnessed demand sluggishness with higher pressure on PH India (higher competition).

2QFY23 print was decent in the current context. The gross margin weakness (down 310bps YoY) was a slight disappointment though (considering the price hikes).

1QFY23 print was in line with our expectation, both on top line and margins.