India's Sapphire Foods slips; analysts project weak performance, cautious expansion to continue

Sapphire Foods India

20/10/2025 06:54

** Shares of Sapphire Foods SAPI.NS, the operator of Indian KFC and Pizza Hut restaurants, down 0.3% at 287.5 rupees

** SAPI reports a second consecutive quarterly loss, with gross margins contracting for a fourth consecutive quarter

** Centrum says, with no clear signs of a consumption pick-up, that it expects Sapphire's weak performance to continue

** Emkay says Sapphire remains cautious on expanding restaurant count, focusing instead on improving transaction growth with better value offers

** Elara Capital says despite recovery being likely in the second half of fiscal year, same-store sales may still be negative in FY26

** Adds while Sapphire's delivery mix - which can yield higher growth - has increased, it may plateu at ~48% given its dine-in orientation

** SAPI rated "hold" on average by 22 analysts, with avg PT at 338 rupees, as per data compiled by LSEG

** YTD, SAPI stock down 12.5%

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))