Sapphire Foods India Limited has informed the Exchange about Transcript

Date 27 October 2026 National Stock Exchange of India Limited BSE Limited Exchange Plaza, Block G, C/1, Bandra Kurla Phiroze Jeejeebhoy Towers, Complex, Bandra (E), Mumbai – 400051 Dalal Street, Mumbai – 400001 Symbol: SAPPHIRE Scrip Code: 543397 Dear Sir/Madam, Subject: Earnings Call Transcript – Q2 FY27 Pursuant to the Regulation 30 of SEBI (Listing Obligations and Disclosure Requirements) Regulations 2015, please find enclosed herewith the transcript of earnings call held on Thursday, 22 October 2026, in relation to the financial results of the Company for the quarter and half year ended 30 September 2026. The said Earnings Call Transcript is also available at the website of the Company (https://www.sapphirefoods.in/investors-relation/financials) under FY 2026-27 Quarter 2 section. Request you to kindly take the same on record. For Sapphire Foods India Limited Thanking you, Sachin Dudam Company Secretary and Compliance Officer Encl: Sapphire Foods India Limited +91 022 67522300 CIN: L55204HR2009PLC145722 info@sapphirefoods.in www.sapphirefoods.in Registered Office: SCO 328, Sector - 9, Panchkula -134109, Haryana Corporate Office: 702, Prism Tower, A-Wing, Mindspace, Link Road, Goregaon (W), Mumbai- 400062 “Sapphire Foods India Limited Q2 FY27 Earnings Conference Call.” October 22, 2026 MANAGEMENT: MR. SANJAY PUROHIT – WHOLE TIME DIRECTOR AND GROUP CHIEF EXECUTIVE OFFICER – SAPPHIRE FOODS INDIA LIMITED MR. VIJAY JAIN – EXECUTIVE DIRECTOR AND CHIEF FINANCIAL OFFICER – SAPPHIRE FOODS INDIA LIMITED MR. KAUSHIK VANKADKAR – HEAD OF INVESTOR RELATIONS – SAPPHIRE FOODS INDIA LIMITED Page 1 of 10 Sapphire Foods India Limited October 22, 2026 Moderator: Ladies and gentlemen, good day, and welcome to Sapphire Foods India Limited Q2 FY '27 Earnings Conference Call. As a reminder, all participant line will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star then zero on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Purohit from Sapphire Foods India Limited. Thank you, and over to you, sir. Sanjay Purohit: Good afternoon, everyone. Welcome to the Q2 FY '27 business performance highlights of Sapphire Foods. You all must have a copy of the presentation that we uploaded this afternoon. We delivered the best quarter of revenue growth, 20% and adjusted EBITDA growth 39% since the COVID period, that is since the last 16 quarters. Our Q2 FY '27 revenue was INR885 crores, as I said, up 20%. We added 15 KFC restaurants, 1 Pizza Hut in Sri Lanka. Our total restaurant count was 1,086 as of 30th September. Consolidated restaurant EBITDA was up 21% Y-o-Y. Margin was 11.5%, up 20 basis points. Consolidated adjusted EBITDA was INR62.4 crores, up 39% Y-o-Y and consolidated adjusted EBITDA margin was 7.1%, up 100 basis points. Consolidated EBITDA was INR128.6 crores, Margin 14.5%, and this grew again 21% Y-o-Y. Consolidated adjusted PBT was INR12 crores or 1.4% and consolidated PBT, which is post Ind AS was minus INR60 lakhs or minus 0.1%. I just wanted to give some context to what we are thinking as an organization at the moment. We are facing a difficult inflationary environment. That inflation is right across all our cost lines, starting with food inflation, minimum wage inflation. In many states, minimum wages have increased quite substantially, led by Karnataka, where minimum wages have gone up by 26%. Our utilities costs have also increased significantly, gas as well as electricity. This inflationary environment is faced by every consumer company. For us, it translates into pressure on costs. For the consumer, it also translates into pressure on discretionary income. And in such environment, typically, you find consumers going a little easy on spending on discretionary income categories. Therefore, driving growth is of primary concern in an environment like this. Our mindful emphasis has been on driving transaction growth and through transaction growth, same-store sales growth. And we have done that through compelling value offerings and also spending additional marketing money behind these value offerings. That is the reason why we’ve delivered our best quarter of growth. And if this growth sustains over a period of time, while perhaps in the coming quarters, there might be pressure on margins, we believe that we can recover costs. Recovering growth is more difficult, and therefore, the foot is on the accelerator pedal to drive growth first and foremost. Let me now look at KFC. I'm on Slide number 19. KFC SSSG was 14%, but after we factor in the Navratri change of dates, so this year, Navratri is in Q3 FY '27, whereas last year was in Q2, we get an upside because of that. If I factor that into account, we are close to double-digit SSSG. Page 2 of 10 Sapphire Foods India Limited October 22, 2026 Now this, again, has been the best SSSG that we have seen over the last several quarters. What is heartening about this is that our dine-in takeaway or internally, we call it DITA (dine-in plus takeaway) is higher than delivery. So our own consumers coming to our own assets, that growth is higher than delivery. And this is, again, backed by a very mindful consumer recruitment strategy, as we have outlined. This recruitment strategy, which is either focusing on everyday value at INR99 or at INR149 in Tamil Nadu or disruptive abundant value on select days is driving transaction growth. And we've also invested further marketing money over and above what is typically committed to promote this consumer recruitment. This is enabling KFC to drive 14% SSSG, 26% overall SG and after factoring Navratri, close to double-digit SSSG. You can see some of the pictures of the offers of the everyday promotions as well as of the innovations. Digital kiosks, we continue to drive implementation in store. And today, 80% of our restaurants have digital kiosks. Now I'll hand it over to Vijay to take us through the financial numbers on KFC. Vijay Jain: I'm on Slide number 25, which gives channel-wise sales mix. Dine-in and takeaway mix improved to 57% for KFC. This is on back of aggressive entry value promotions and offers in dine-in and takeaway exclusively. In terms of SSSG, 14%, but adjusted for Navratri impact, as Sanjay mentioned, high double digit. Overall revenue growth of 26% for KFC. Gross margin improved to 67.7%, up by 50 basis points over last year and restaurant EBITDA came in at 14.5%, up by 70 basis points over last year. And this is, as Sanjay mentioned, despite a high inflationary scenario on energy, especially and to some extent on raw material as well. Slide number 28 gives you 4-year and 5-quarter trend. This is now the fourth consecutive quarter of positive SSSG for KFC. And the heartening part is that this is on back of strong transaction growth and that too driven especially in dine-in and takeaway, and this augurs well for the brand as we move forward. Sanjay Purohit: Let's come to Pizza Hut, and I'm on Slide number 30. The Pizza Hut SSSG of 5% is the highest that we have seen in the last 7 quarters. SSTG (same-store transaction growth) is double digit and includes positive transaction growth even in dine-in and takeaway, again, backed by value offerings, late night, additional marketing spends. You can see some of the innovation that we have launched, the 3-in-1 Triple Spice pizza, some of the value promotions and Vijay will take us through the financials. Vijay Jain: I'm on Slide number 34, channel-wise sales mix for Pizza Hut. Here, the delivery mix has improved from 50% to 52% in the quarter and dine-in and takeaway came at 48%. SSSG grew by 5% for the brand. This is highest in the last 7 quarters and overall revenue growth improved to 7%. Gross margin was up by 190 basis points at 76.3% and in restaurant EBITDA, we made a loss of 2.8%. [Showing first 8,000 characters — download PDF for full document]