Sapphire Foods India Ltd. (SAPPHIRE) AI Stock Analysis

• Market Cap: ₹53.32B
• Dividend Yield: N/A
• Average Volume (3M): 14.64K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.39
• Revenue Growth: 10.18%
• EPS Growth: -104.25%
• Country: IN
• Employees: 12,499
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Restaurants
• EPS (TTM): 0.00
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -0.19
• Revenue Forecast (FY): ₹31.09B

• Rating: 61 Neutral
• Price Target: ₹175.00 ▼(-30.75% Downside)
• Action: Reiterated Date: 02/06/26
• Date: Action: Reiterated 02/06/26

Overall score reflects solid financial performance (growth, margins, and operating cash generation) offset by a weaker technical trend (below key longer-term moving averages with negative MACD) and weak/unclear valuation signals due to a negative P/E and no dividend yield data.

Positive Factors

Revenue Growth Trajectory

Sapphire's ~8.6% revenue growth reflects expanding sales across its franchise QSR footprint. Durable revenue expansion supports scale benefits, better fixed-cost absorption and stronger bargaining power with suppliers, underpinning multi-month cash generation and growth optionality.

Robust Gross Margin / Cost Management

A strong gross margin indicates effective menu pricing, procurement and operational controls in the restaurant model. Sustained gross profitability protects operating leverage as sales grow, enabling the company to absorb higher operating costs and finance reinvestment in stores over the medium term.

Operating Cash Flow Strength

Consistent operating cash flow and improving free cash flow trends imply the business converts sales into real cash, supporting capex for new stores, working capital needs and debt servicing. Reliable cash generation is a durable pillar for franchise rollouts and operational resilience.

Negative Factors

Elevated Leverage

Higher debt-to-equity raises financial risk and interest costs, limiting flexibility to fund expansion or weather downturns. For a growth-focused QSR operator, sustained reliance on debt increases refinancing and liquidity vulnerability over the coming months if cash generation or margins falter.

Net Margin Compression

Declining net margins from rising operating costs (labor, occupancy, variable store expenses) reduce retained earnings and ROE. Unless operational efficiencies or pricing improvements are implemented, margin pressure can persist and constrain free cash flow available for reinvestment and debt reduction.

Weak FCF Conversion vs. Net Income

If net income does not consistently convert to free cash flow, the company may face cash strain for capex, store openings or debt service despite accounting profits. Persistent conversion gaps point to working capital or capex demands that can limit strategic flexibility over several quarters.

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. primarily makes money by operating franchisee-run QSR restaurants and earning revenue from selling food and beverages to end customers across its store network. Its core revenue stream is in-store and off-premise (takeaway and delivery) customer sales, where the company recognizes revenue based on the menu items sold. As a franchisee, it typically pays brand owners ongoing fees/royalties and may contribute to brand-level advertising/marketing funds (exact terms vary by brand agreements). Earnings are therefore driven by same-store sales growth, new store additions, product mix (higher-margin items such as beverages and add-ons), operating efficiency at the restaurant level, and the ability to manage food, labor, and occupancy costs. Partnerships that contribute to monetization include (where applicable) franchise/licensing relationships with brand owners that enable store expansion and access to brand marketing, and arrangements with delivery aggregators/online ordering platforms that support off-premise sales (specific counterparties and economics: null).

Sapphire Foods India Ltd. Financial Statement Overview

Summary

Financial statements indicate solid fundamentals: strong revenue growth and a robust gross margin, supported by healthy operating cash flow. Offsetting factors include weaker net margin from higher operating costs, somewhat elevated leverage (higher debt-to-equity), and imperfect conversion of net income into free cash flow.

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	29.87B	28.82B	25.94B	22.66B	17.15B	10.16B
Gross Profit	14.44B	9.89B	9.05B	12.32B	8.25B	4.72B
EBITDA	4.88B	4.77B	4.95B	4.59B	3.43B	1.71B
Net Income	-7.93M	192.53M	528.09M	2.33B	464.60M	-984.63M
Balance Sheet
Total Assets	32.07B	30.41B	28.40B	25.94B	21.64B	13.49B
Cash, Cash Equivalents and Short-Term Investments	1.33B	2.28B	1.81B	2.88B	4.07B	767.41M
Total Debt	13.80B	12.92B	11.64B	9.63B	7.89B	6.45B
Total Liabilities	18.16B	16.45B	15.00B	13.40B	11.58B	8.70B
Stockholders Equity	13.92B	13.98B	13.39B	12.56B	10.07B	4.80B
Cash Flow
Free Cash Flow	939.31M	2.43B	636.27M	-23.32M	1.10B	800.92M
Operating Cash Flow	2.12B	5.08B	4.49B	3.82B	3.95B	1.54B
Investing Cash Flow	-894.70M	-3.37B	-1.87B	-2.04B	-6.92B	-779.24M
Financing Cash Flow	-1.24B	-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: Positive
• STOCH: Neutral

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 194.04, above the 50-day MA of 204.78, and below the 200-day MA of 274.94, indicating a bearish trend. The MACD of -13.27 indicates Positive momentum. The RSI at 28.81 is Positive, neither overbought nor oversold. The STOCH value of 21.10 is Neutral, 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	₹32.33B	57.49	―	0.38%	0.68%	-45.98%
DEVYANI	63 Neutral	₹132.97B	-438.93	―	―	20.91%	-202.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
SAPPHIRE	61 Neutral	₹53.32B	-431.17	―	―	10.18%	-104.25%
WESTLIFE	52 Neutral	₹68.06B	2,134.73	―	0.14%	6.65%	73.46%
RBA	41 Neutral	₹35.74B	-21.12	―	―	7.75%	20.28%

Sapphire Foods India Ltd. Corporate Events

Sapphire Foods Schedules Analyst and Investor Meeting on 20 March 2026

Sapphire Foods India Limited has notified the stock exchanges that its officials will meet analysts and institutional investors on 20 March 2026 in an in-person, one-on-one interaction organized by Spark Institutional Equities Private Limited. The company has also made its latest investor and corporate presentation available on the stock exchanges and its website, aiming to enhance transparency and keep shareholders and market participants informed in line with SEBI disclosure regulations.

The scheduled meeting underscores Sapphire Foods India’s ongoing engagement with the investment community, which can influence investor perception and provide deeper insight into its strategy and operations. By proactively sharing detailed presentations and adhering to regulatory disclosure norms, the company reinforces its commitment to governance and timely communication, potentially supporting its capital markets profile and stakeholder confidence.

Sapphire Foods Schedules Goldman Sachs Meet, Updates Investor Presentation

Sapphire Foods India Limited has scheduled an in-person, one-on-one meeting with Goldman Sachs on 26 February 2026, as part of its ongoing engagement with analysts and institutional investors. The company has also made its latest investor and corporate presentation available on stock exchanges and its website, reinforcing transparency and regulatory compliance under SEBI’s listing obligations.

These interactions signal Sapphire Foods’ continued efforts to deepen its dialogue with the investment community, which can influence market perception and support informed valuation of the stock. By proactively sharing detailed corporate information and maintaining open channels with key financial institutions, the company underscores its focus on governance and long-term stakeholder communication.

Sapphire Foods Shareholders Clear Shift of Registered Office to Haryana

Sapphire Foods India Limited has secured shareholder approval via postal ballot to shift its registered office from the state of Maharashtra to the state of Haryana, alongside a consequential amendment to its Memorandum of Association. The special resolution was passed with the requisite majority through remote e-voting, effective 8 February 2026, signaling a strategic corporate relocation that may streamline regulatory alignment and operational administration for the listed restaurant operator.

The company reported that 53,998 shareholders were on record for the vote, and the detailed e-voting results and scrutinizer’s report have been made available on its website. While no physical or virtual meeting was held, the postal ballot outcome formalizes the change in corporate domicile within India, which could influence future compliance processes and potentially support the company’s broader growth and governance objectives.

Sapphire Foods Posts Quarterly Loss, Plans Merger With Devyani International

Sapphire Foods India Ltd has published an extract of its unaudited standalone and consolidated financial results for the quarter and nine months ended 31 December 2025 in Business Standard and Navshakti, in compliance with Indian securities listing regulations. The results show robust revenue from operations but a net loss after tax for the latest quarter and nine-month period on both a standalone and consolidated basis, reflecting margin pressures despite topline growth. The board has also approved a scheme of arrangement to amalgamate Sapphire Foods with Devyani International Ltd, effective from 1 April 2026 subject to regulatory and statutory approvals, under which Sapphire shareholders would receive 177 Devyani equity shares of face value Rs 1 each for every 100 Sapphire shares of face value Rs 2 each, a move that is set to reshape the QSR landscape by combining two large franchise operators and has significant implications for shareholders and industry consolidation.

Sapphire Foods Schedules Investor Meet on Proposed Merger With Devyani International

Sapphire Foods India has notified the stock exchanges that its officials will hold a virtual one-on-one meeting with HDFC Mutual Fund on 16 January 2026 to discuss the proposed merger of Sapphire Foods India Limited with Devyani International Limited. The company has stated that an investor presentation related to the transaction is already available on the stock exchanges and its website, and emphasized that no unpublished price-sensitive information will be shared during the interaction, underscoring its adherence to SEBI’s disclosure regulations as it engages key institutional stakeholders on this significant corporate move.

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.