Sapphire Foods India Ltd. share price target

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.

IPO note

The Company will not receive any proceeds of the Offer for Sale by the Selling Shareholder. (up to 850,000 equity shares by QSR Management Trust, up to 5,569,533 equity shares by Sapphire Foods Mauritius Limited, up to 4,846,706 equity shares by WWD Ruby Limited, up to 3,961,737 equity shares by Amethyst Private Limited, up to 80,169 equity shares by AAJV Investment Trust, up to 1,615,569 equity shares by Edelweiss Crossover Opportunities Fund and up to 646,227 equity...

Sapphire Foods is increasingly working on its omni-channel strategy and focusing on delivery channels. The company has adopted a hybrid model of maintaining a significant owned online delivery platform and also working...

Sapphire Foods India Limited - IPO Note Sapphire Foods India Ltd (SFIL) is one of YUMs franchisee operators in the Indian subcontinent with revenue from operations of Rs. 13,404.12 million and Rs. 10,196.19 million for the financial years 2020 and 2021, respectively.

Sapphire Foods India Limited (SFIL) was incorporated on November 10, 2009. Sapphire Foods is YUM's largest franchise operator in the Indian subcontinent with revenue from operations of ?1,340 crores and ?1,020 crores for the financial years 2020 and 2021, respectively. The company's association with Yum started in 2015 and they presently have the non-exclusive rights