Sapphire Foods India Ltd. (SAPPHIRE) AI Stock Analysis

• Market Cap: ₹71.33B
• Dividend Yield: N/A
• Average Volume (3M): 14.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 10.18%
• EPS Growth: -104.25%
• Country: IN
• Employees: 12,499
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): -0.40
• Shares Outstanding: 321,382,900
• 10 Day Avg. Volume: 9,615
• 30 Day Avg. Volume: 14,639
• PEG Ratio: -7.66
• Price to Book (P/B): 6.74
• Price to Sales (P/S): 3.27
• P/FCF Ratio: 38.74
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹325.00
• Price Target Upside: 28.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: ₹245.00 ▼(-3.05% Downside)

The score is primarily supported by solid financial performance (strong revenue growth and healthy operating cash generation), but it is meaningfully reduced by weak technicals (price below key moving averages and negative MACD) and unfavorable/limited valuation signals (negative P/E and no dividend yield provided).

Positive Factors

Revenue Growth

Sapphire Foods' consistent revenue growth indicates successful market expansion and product adoption, strengthening its market position in the QSR sector.

Brand Leverage

Leveraging established global brands allows Sapphire Foods to benefit from brand recognition and customer loyalty, enhancing competitive advantage and market penetration.

Cash Flow Generation

Strong cash flow generation supports operational stability and provides the company with financial flexibility for future investments and growth initiatives.

Negative Factors

Net Profit Margin Challenges

Declining net profit margins due to rising operational costs suggest a need for efficiency improvements to sustain profitability and shareholder value.

High Leverage

High leverage can pose financial risks, limiting flexibility and increasing vulnerability to economic downturns, necessitating careful debt management.

Free Cash Flow Conversion

Challenges in converting net income to free cash flow highlight potential inefficiencies in cash management, impacting long-term financial health and investment capacity.

Sapphire Foods India Ltd. Business Overview & Revenue Model

Company Description

Sapphire Foods India Limited owns and operates restaurants in India and internationally. It also engages in the franchisee business. As of March 31, 2022, the company owned and operated 263 KFC and 219 Pizza Hut restaurants in India, 90 Pizza Hut and 5 Taco Bell restaurants in Sri Lanka, and 1 KFC and Pizza Hut restaurant in Maldives. Sapphire Foods India Limited was incorporated in 2009 and is based in Mumbai, India.

How the Company Makes Money

Sapphire Foods India Ltd. generates revenue primarily through the sales of food and beverages in its restaurant outlets. The company's revenue model is centered around its franchise operations for global brands such as KFC, Pizza Hut, and Taco Bell, allowing it to leverage established brand recognition and customer loyalty. Key revenue streams include dine-in, takeout, and delivery services, with a growing emphasis on online ordering and digital sales channels. Significant partnerships with delivery platforms further enhance its market reach. Additionally, Sapphire benefits from economies of scale in procurement and operational efficiency, contributing positively to its profit margins.

Sapphire Foods India Ltd. Financial Statement Overview

Summary

Sapphire Foods shows strong revenue growth and a robust gross profit margin, but faces challenges with net profit margin and high leverage. Cash flow generation is healthy, though conversion of net income into free cash flow needs improvement.

Income Statement

Sapphire Foods has shown a strong revenue growth trajectory, with a notable increase from the previous year. The gross profit margin is robust, indicating effective cost management. However, the net profit margin experienced a decline due to increased operational costs, suggesting a need for efficiency improvements. Overall, the company demonstrates good revenue growth and profitability, but with room for margin enhancements.

Balance Sheet

The company maintains a healthy equity ratio, signifying a strong equity base relative to its assets. However, the debt-to-equity ratio is somewhat elevated, suggesting reliance on debt financing, which could pose risks if not managed properly. Return on equity is positive but could improve with better net income performance.

Cash Flow

Sapphire Foods has shown a positive trend in free cash flow growth, supported by strong operating cash flow. The operating cash flow to net income ratio is healthy, indicating good cash generation from operations. However, the free cash flow to net income ratio suggests some challenges in converting net income into free cash flow, highlighting potential areas for cash management improvement.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	29.40B	28.82B	25.94B	22.66B	17.15B	10.16B
Gross Profit	14.39B	9.89B	9.05B	12.32B	8.25B	4.72B
EBITDA	4.86B	4.77B	4.95B	4.59B	3.43B	1.71B
Net Income	89.40M	192.53M	528.09M	2.33B	464.60M	-984.63M
Balance Sheet
Total Assets	0.00	30.41B	28.40B	25.94B	21.64B	13.49B
Cash, Cash Equivalents and Short-Term Investments	2.28B	2.28B	1.81B	2.88B	4.07B	767.41M
Total Debt	0.00	12.92B	11.64B	9.63B	7.89B	6.45B
Total Liabilities	-13.96B	16.45B	15.00B	13.40B	11.58B	8.70B
Stockholders Equity	13.96B	13.98B	13.39B	12.56B	10.07B	4.80B
Cash Flow
Free Cash Flow	0.00	2.43B	636.27M	-23.32M	1.10B	800.92M
Operating Cash Flow	0.00	5.08B	4.49B	3.82B	3.95B	1.54B
Investing Cash Flow	0.00	-3.37B	-1.87B	-2.04B	-6.92B	-779.24M
Financing Cash Flow	0.00	-2.11B	-2.12B	-1.95B	3.13B	-515.28M

Sapphire Foods India Ltd. Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 252.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:SAPPHIRE, the sentiment is Negative. The current price of 252.7 is above the 20-day moving average (MA) of 238.43, above the 50-day MA of 248.88, and below the 200-day MA of 298.63, indicating a bearish trend. The MACD of -6.48 indicates Positive momentum. The RSI at 35.24 is Neutral, neither overbought nor oversold. The STOCH value of 6.30 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:SAPPHIRE.

Sapphire Foods India Ltd. Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WONDERLA	64 Neutral	₹32.78B	39.87	―	0.38%	0.68%	-45.98%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAPPHIRE	59 Neutral	₹71.33B	-9,512.61	―	―	10.18%	-104.25%
DEVYANI	54 Neutral	₹167.36B	-492.33	―	―	20.91%	-202.35%
WESTLIFE	52 Neutral	₹77.82B	212.31	―	0.14%	6.65%	73.46%
BARBEQUE	50 Neutral	₹8.10B	-14.25	―	―	-1.36%	-516.77%
RBA	41 Neutral	₹38.69B	-18.23	―	―	7.75%	20.28%

Sapphire Foods India Ltd. Corporate Events

Sapphire Foods Schedules Investor Meet on Proposed Merger With Devyani International

Sapphire Foods India Limited has notified the stock exchanges that its officials will interact with analysts and institutional investors from Nippon Mutual Fund on 15 January 2026 via a one-to-one virtual meeting in connection with its proposed merger with Devyani International Limited. The company has clarified that an investor presentation related to this merger is already available on its website and on the stock exchanges, and emphasized that no unpublished price-sensitive information will be discussed, underscoring its adherence to SEBI’s disclosure and governance norms during this crucial phase for shareholders and market participants.

Sapphire Foods Seeks Shareholder Nod to Shift Registered Office from Maharashtra to Haryana

Sapphire Foods India Limited has initiated a postal ballot process seeking shareholder approval via remote e-voting for a special resolution to shift its registered office from the state of Maharashtra to the state of Haryana, along with a consequential amendment to its Memorandum of Association. The move, conducted in compliance with SEBI listing regulations and Ministry of Corporate Affairs circulars, signals a potential strategic realignment of the company’s corporate base and regulatory jurisdiction, with the e-voting window running from 10 January 2026 to 8 February 2026 and MUFG Intime India Private Limited engaged to provide the electronic voting facility to eligible shareholders.

Sapphire Foods Publishes Investor Call Audio on Merger with Devyani International

Sapphire Foods India Limited has informed the stock exchanges that the audio recording of its recent investors and analysts conference call regarding a merger announcement jointly hosted with Devyani International Limited has been uploaded to the company’s investor relations section on its website. The disclosure, made under the SEBI Listing Regulations, enhances transparency for shareholders and market participants by providing public access to management’s discussion on the proposed merger and its implications.

Devyani International to Merge with Sapphire Foods, Forming Unified Yum! Franchisee in India

Devyani International Limited and Sapphire Foods India Limited have approved a scheme of arrangement to merge Sapphire Foods into Devyani through a share-swap transaction, creating a single unified Yum! Brands franchisee for KFC and Pizza Hut in India. Subject to multiple regulatory, statutory, and stakeholder approvals expected to take 12–15 months, the deal will make Devyani one of the largest QSR operators in the country, with strategic priorities centred on accelerating KFC expansion, revitalising Pizza Hut for sustainable growth, and scaling Devyani’s emerging brands portfolio, underpinned by Yum! Brands’ approval of the consolidation and agreed commercial terms.

Sapphire Foods Publishes Investor Presentation on Merger with Devyani International

Sapphire Foods India Limited has notified the stock exchanges that it has released an investor presentation detailing the proposed merger of Sapphire Foods India Limited with and into Devyani International Limited, and has made the materials available on its investor relations website. The disclosure, made under securities listing regulations, signals a significant consolidation move in the quick-service restaurant space, with potential implications for the combined entity’s scale, brand portfolio, and positioning in the competitive Indian food services industry.

Sapphire Foods and Devyani International to Brief Investors on Planned Merger

Sapphire Foods India Limited has notified the stock exchanges that it will jointly host an investor and analyst conference call with Devyani International Limited on 6 January 2026 to discuss a proposed merger between the two companies. Senior management from both firms will participate in the call to elaborate on the merger announcement and address stakeholder queries, signaling a significant potential consolidation move in India’s quick-service restaurant space and heightened engagement with the investment community around the transaction.

Sapphire Foods Board Clears Merger With Devyani International and Plans Shift of Registered Office to Haryana

Sapphire Foods India’s board has approved a scheme of arrangement under which the company will be amalgamated into fellow QSR operator Devyani International Limited, effective from an appointed date of April 1, 2026, subject to a series of regulatory, shareholder, creditor and competition approvals. As consideration, Devyani International will issue 177 fully paid equity shares of Re 1 each for every 100 fully paid equity shares of Rs 2 each held in Sapphire Foods, while a related secondary sale of about 18.5% of Sapphire’s equity from Sapphire Foods Mauritius to Arctic International (or an assigned financial investor) is also envisaged as a condition to the merger, and the companies have additionally entered into a merger framework agreement and a binding term sheet with Yum group entities to govern franchise arrangements post-combination. Separately, Sapphire Foods’ board has cleared a proposal to shift the company’s registered office from Maharashtra to Haryana, along with an amendment to its memorandum of association, with the move to be implemented through a postal ballot and requiring central government and other statutory approvals, signalling an impending change in its legal and administrative base ahead of the proposed merger integration.

Sapphire Foods Clears Merger with Devyani, Restructuring and Yum Pact in Major QSR Shake-Up

Sapphire Foods India Limited’s board has approved a scheme of arrangement to amalgamate the company with Devyani International Limited, under which Sapphire shareholders will receive 177 fully paid equity shares of Devyani for every 100 Sapphire shares held, subject to a series of statutory, regulatory and transactional conditions including competition, stock exchange and tribunal approvals, as well as a significant secondary sale of Sapphire shares by Sapphire Foods Mauritius Limited to Arctic International Private Limited or its financial investor designee. The board also cleared the execution of a binding term sheet with Yum group entities in the US and India, Devyani and related parties, and separately approved shifting Sapphire’s registered office from Maharashtra to Haryana with corresponding amendments to its Memorandum of Association, signalling a major consolidation and structural realignment in India’s QSR franchise ecosystem with implications for shareholders, creditors and business partners as the combined entity moves toward an integrated platform under Devyani’s umbrella.

Sapphire Foods Board Clears Merger with Devyani International and Plans Registered Office Shift

Sapphire Foods India Limited’s board has approved a scheme of arrangement for the amalgamation of Sapphire Foods (as transferor company) into Devyani International Limited, under which Sapphire shareholders will receive 177 fully paid equity shares of Devyani for every 100 fully paid equity shares of Sapphire held, subject to multiple statutory, regulatory and stakeholder approvals. The transaction framework includes a merger framework agreement among Sapphire, Devyani, Sapphire Foods Mauritius, QSR Management Trust’s trustee Sagista Realty Advisors and RJ Corp, a conditional secondary sale of about 18.5% of Sapphire’s equity by Sapphire Foods Mauritius to Arctic International (or its assigned financial investor), a binding Yum India term sheet with key Yum group franchising entities, and the proposed shift of Sapphire’s registered office from Maharashtra to Haryana via an amendment to its Memorandum of Association to be approved by shareholders and regulators, signaling a major structural consolidation and corporate reorganization within India’s QSR space.

Sapphire Foods Faces Demand Notice from ESIC for Outstanding Dues

Sapphire Foods India Limited has received a demand notice from the Employees’ State Insurance Corporation (ESIC) regarding outstanding dues amounting to INR 5.60 million, related to a business transfer agreement with A.N. Traders Private Limited from 2016. The company has stated that this notice will not materially impact its financial or operational activities and is currently evaluating the notice to decide on the necessary steps, including potentially challenging the demand.