Sapphire Foods India, the operator of popular quick-service restaurant brands KFC, Pizza Hut and Taco Bell in India, reported a return to losses in the third quarter of FY26, even as its revenues continued to grow on both a year-on-year and quarter-on-quarter basis.
For the quarter ended December 31, 2025 (Q3 FY26), the company’s revenue from operations stood at ₹813.83 crore, marking a 7.6% increase compared to ₹756.54 crore in the same quarter last year. Sequentially, revenue grew 9.6% from ₹742.44 crore in Q2 FY26. Total income for the quarter rose 7% year-on-year to ₹820.89 crore, up from ₹767.04 crore, and increased 9.2% quarter-on-quarter.
However, profitability remained under pressure. Sapphire Foods reported a net loss of ₹4.81 crore in Q3 FY26, reversing the net profit of ₹12.73 crore posted in Q3 FY25. The company had also recorded a net loss of ₹12.79 crore in the preceding quarter. The quarter included exceptional items amounting to ₹11.16 crore, which weighed on the bottom line.
Total expenses during the quarter climbed to ₹813.08 crore, an increase of 8.4% year-on-year and 5.8% sequentially, reflecting higher operating and cost pressures.
For the nine months ended December 31, 2025 (9M FY26), Sapphire Foods reported revenue from operations of ₹2,333.09 crore, up 7.5% from ₹2,170.52 crore in the corresponding period last year. Total income rose 7.4% to ₹2,356.18 crore. Despite this growth, the company posted a net loss of ₹19.33 crore for the nine-month period, compared to a net profit of ₹14.68 crore in the year-ago period, as expenses increased 9.5% year-on-year to ₹2,366.80 crore.
