Sapphire Foods India Limited is a leading company in India's quick service restaurant (QSR) and casual dining sector. The company is a major franchisee operator of Yum! Brands in India, Sri Lanka, and the Maldives, operating globally recognized brands including Kentucky Fried Chicken (KFC), Pizza Hut, and Taco Bell.
As one of the most prominent food service operators in the Indian subcontinent, Sapphire Foods has established a significant presence through strategic franchise partnerships. The company holds non-exclusive rights to operate restaurants under these three Yum! Brands. As of Q2FY25, its portfolio included:
- 463 KFC restaurants in India and the Maldives.
- 437 Pizza Hut restaurants in India, Sri Lanka, and the Maldives.
- 9 Taco Bell restaurants in Sri Lanka.
Sapphire Foods operates a diverse portfolio of internationally renowned QSR brands, each with a distinct menu:
- KFC: Offers an extensive menu featuring chicken on the bone, boneless chicken, other chicken products, burgers, rice bowls, wraps, beverages, and desserts.
- Pizza Hut: Provides a wide variety of pizzas, pasta, appetizers, beverages, and desserts for all parts of the day.
- Taco Bell: Features a comprehensive menu with various taco fillings, sauces, and distinctive products like sweet burritos and bell wings.
The company's operational footprint extends across multiple geographies, making it a key player in the South Asian QSR market. It is Sri Lanka's largest international QSR chain, with 121 outlets in 52 cities. In total, the company has approximately 963 restaurant outlets as of March 31, 2025.
The market capitalization of Sapphire Foods India Ltd (SAPPHIRE) stood at ₹10,637.77 crore as of May 16, 2025. The company has shown resilience in its financial performance, although recent quarters have presented challenges to profitability.
- Sales: ₹711.34 crore in Q4 FY2025 compared to ₹631.70 crore in Q4 FY2024, showing a 12.61% YoY growth.
- Net Profit: ₹1.79 crore in Q4 FY2025 versus ₹2.39 crore in Q4 FY2024, reflecting a 25.10% decline year-on-year.
During the quarter, the company added six new KFC outlets, bringing the total restaurant count to 963 as of March 31, 2025.
- Sales: ₹2,881.86 crore in FY2025 compared to ₹2,594.28 crore in FY2024, showing an 11.09% YoY growth.
- Net Profit: ₹19.25 crore in FY2025 versus ₹52.81 crore in FY2024, reflecting a 63.55% decline year-on-year.
- P/E (Price-to-Earnings) Ratio: 552.61
- P/B (Price-to-Book) Ratio: 7.94
- 52-Week High: ₹401
- 52-Week Low: ₹274
- Promoter Holding: 26.1%
The stock is trading at 7.36 times its book value. Despite reporting repeated profits, the company is not currently paying out dividends.
- November 10, 2009: Incorporated as `Samarjit Advisors Private Limited`.
- January 7, 2015: Name changed to `Sapphire Foods India Private Limited`.
- June 15, 2021: Converted into a public limited company, and the name was changed to `Sapphire Foods India Limited`.
- November 2021: The company launched a ₹2,073-crore public issue, which was entirely an offer for sale (OFS) by selling shareholders. The IPO shares were listed on the BSE and NSE on November 18, 2021.
Sapphire Foods has been actively expanding its operations and enhancing its product offerings.
- FY 2022-23 Expansion: Opened 164 new restaurants (78 KFC, 67 Pizza Hut in India, and 15 Pizza Hut, 4 Taco Bell in Sri Lanka).
- Product Innovation: Launched 10 new pizzas and sauces in April 2023.
- Employee Incentives: Granted up to 4,89,950 stock options under its Employee Stock Option Plan (ESOP) to foster employee engagement and retention.
Sapphire Foods India Ltd operates within the Consumer Discretionary sector, specifically in the Restaurants & Cafes sub-sector. While the market is competitive, the company maintains its position as a leading franchisee operator in the region.
Brokerages like Goldman Sachs remain optimistic, anticipating an uptick in performance. Sapphire Foods and Devyani International, both KFC franchisees, are often highlighted as top picks due to KFC's strong long-term growth potential in India and the limited competition in the fried chicken QSR segment.
The company continues to focus on expanding its footprint, maintaining operational efficiency, and ensuring customer satisfaction through its portfolio of established global brands. With strong franchise relationships and a strategic market position, Sapphire Foods is well-equipped to capitalize on the growing demand for quick-service restaurants in the Indian subcontinent.
