KFC, Pizza Hut and Taco Bell operator posts over Rs 4 crore loss in Q3 FY26

Sapphire Foods India, the operator of KFC, Pizza Hut and Taco Bell in India, reported slipping back into losses in the third quarter of FY26, despite revenue increasing both year-on-year and sequentially.

For the quarter ended December 31, 2025 (Q3 FY26), the company’s revenue from operations was Rs 813.83 crore, reflecting a 7.6% rise from Rs 756.54 crore in the same quarter last year. On a quarter-on-quarter basis, revenue grew 9.6% from Rs 742.44 crore in Q2 FY26.

Total income for the quarter stood at Rs 820.89 crore, compared to Rs 767.04 crore in Q3 FY25, representing a 7% year-on-year increase. Sequentially, total income also rose 9.2% from Rs 751.69 crore.

However, Sapphire Foods recorded a net loss of Rs 4.81 crore in Q3 FY26, versus a net profit of Rs 12.73 crore in Q3 FY25. The company had also posted a net loss of Rs 12.79 crore in Q2 FY26.

The quarter included exceptional items amounting to Rs 11.16 crore.

On the expenditure front, total expenses climbed to Rs 813.08 crore, up 8.4% from Rs 750.22 crore a year earlier. Costs were also higher than the Rs 768.26 crore reported in the previous quarter, marking a 5.8% sequential increase.

For the nine months ended December 31, 2025 (9M FY26), Sapphire Foods reported revenue from operations of Rs 2,333.09 crore, a 7.5% increase from Rs 2,170.52 crore in the corresponding period last year. Total income reached Rs 2,356.18 crore, compared to Rs 2,194.76 crore in 9M FY25, reflecting a 7.4% rise.

Despite topline growth, the company posted a net loss of Rs 19.33 crore for the nine-month period, against a net profit of Rs 14.68 crore in the year-ago period.

Total expenses for the nine months increased 9.5% year-on-year to Rs 2,366.80 crore, up from Rs 2,160.81 crore in 9M FY25.