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Higher sales across its restaurant brands helped the company narrow its consolidated net loss to around ₹1.5 crore, compared with ₹12.8 crore in the year-ago period.
EBITDA grew 23.5% year-on-year to ₹126 crore from ₹102 crore in Q2 FY26, while EBITDA margin improved to 14.2% from 13.7%. The company achieved this better operating performance even as it faced inflation in raw material and energy costs and stepped up marketing spends.
KFC was the standout performer of the quarter, with revenue rising 26%, the brand’s strongest quarterly growth in 16 quarters. Same-store sales growth (SSSG) came in at 14%, backed by double-digit growth in transactions and value-focused promotions.
The brand kept its focus on affordability and attracting new customers with offers such as the ₹99 Chicken Krisper Burger Meal, the ₹149 Thalaiva Meal in Tamil Nadu, and buy-one-get-one deals on chicken buckets. These offers boosted footfall and transactions in a highly competitive quick-service restaurant segment.
KFC’s restaurant EBITDA margin rose 70 basis points year-on-year to 14.5%, despite higher costs and increased marketing spend.
Pizza Hut India also showed signs of recovery, with revenue up 7% year-on-year and same-store sales growing 5%, its best SSSG in seven quarters. Same-store transactions grew in double digits, with both dine-in and takeaway channels posting positive growth.
Value offerings such as the ₹99 four-course meal and buy-one-get-one deals helped lift sales. However, the brand’s restaurant EBITDA margin stayed negative at -2.8%, as profitability remained under pressure from factors including higher energy costs.
During Q2 FY27, Sapphire Foods opened 15 new KFC restaurants and one Pizza Hut outlet in Sri Lanka, bringing its total network to 1,086 restaurants as of September 30, 2026.
