Shares of Sapphire Foods India Ltd fell over 2% today, trading at ₹327.55 on the NSE at 1:40 PM, down ₹7.80 from the previous close. The stock decline comes after the company reported a disappointing set of earnings for the quarter ended June 30, 2025.
For Q1FY26, revenue from operations rose around 8% year-on-year to ₹776.8 crore compared to ₹718.3 crore a year ago. Including other income of ₹6.78 crore, the total income stood at ₹783.6 crore versus ₹723.6 crore in Q1FY25.
However, expenses grew faster than revenues. Total expenses for the quarter rose nearly 10% YoY to ₹785.4 crore, up from ₹711.8 crore in the same quarter last year. Employee benefit expenses increased to ₹102.3 crore from ₹94.9 crore, while material costs rose to ₹253.3 crore from ₹225.6 crore.
As a result, Sapphire Foods posted a loss before tax of ₹1.84 crore, compared to a profit of ₹11.8 crore in Q1FY25. After accounting for taxes, the company reported a net loss of ₹1.74 crore, compared to a net profit of ₹8.1 crore a year ago.
The decline in margins and profitability, despite revenue growth, weighed on investor sentiment. The management noted that rising input costs and operating expenses impacted the bottom line, though demand and revenues remained healthy.
Sapphire Foods operates as one of the largest franchisees of global quick-service restaurant brands in India and South Asia.
