Sapphire Foods India Ltd (NSE: SAPPHIRE) Q3 2026 Earnings Call dated Feb. 06, 2026
Corporate Participants:
Sanjay Purohit — Group Chief Executive Officer and Whole Time Director
Vijay Jain — Chief Financial Officer
Analysts:
Unidentified Participant
Gaurav Jagani — Analyst
Presentation:
operator
Ladies and gentlemen, good day and welcome to The Sapphire Foods Q3 FY26 earnings conference call. As a reminder, all participant lines will be in the listen only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing Star then zero on your touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Sanjay Purohit. Thank you. And over to you sir.
Sanjay Purohit — Group Chief Executive Officer and Whole Time Director
Good afternoon everybody. My name is Sanjay Purohit and I’m the group CEO at Sapphire Foods and I’m joined by Vijay Jain who’s our CFO. Welcome to our quarter three FY26 investor presentation and where we’ll talk about our business performance highlights. Our quarter three performance saw much improvement on profitability compared to our earlier quarters and this was led by KFC’s restaurant EBITDA coming in at 18.8%. Revenue for KFC grew by 11%, Pizza Hut declined by 11% and Sri Lanka grew by 15%. Overall we were able to grow revenue in the region of 77 7.5% in Pizza Hut.
Our Tamil Nadu market continues to deliver double digit delta performance both on SSSG as well as on EBITDA versus the rest of the country. Our total revenue for the quarter was 811 crores with a 7% growth year on year. We added a total of 31 stores in this quarter. 27 KFCs, 1 Pizza Hut in India, 3 Pizza Hut in Sri Lanka. In Pizza Hut over the calendar year we added a total of zero stores. So whatever stores that we added, we also closed an equal number of stores and our count as of 31st December stands at 1028.
Our consolidated restaurant EBITDA grew 5% year on year. Margin was at 15% which is down 40% year on year and our adjusted EBITDA was 77 crores. It declined 5% over last year. Our consolidated adjusted EBITDA margin was 9.5%. Consol EBITDA which is post index was 136 crores or 16.8% and declined 3% year on year. Our Consol adjusted PBT before exception was 24 crores or 2.9%. Let me go over to KFC. On KFC you have heard Me say that I’m on slide number 17 and then on slide number 18 on 18 you’ve got the brand priorities that we talk about on KFC for a significant period of time.
Our principal intention on KFC is to grow the consumer base. At the beginning of the year we had launched beginning of the financial year we had launched the Epic saver campaign at rupees 299 and we thought that this would be able to bring in transactions. While it formed a double digit menu mix contribution it yet was not able to pull in substantial transactions. We have slowed down on that Epic Saver campaign and in about one about one third of our estate have piloted Crisper chicken crisper meal for rupees 99 in dine in and take away channels in about 25% of the stores and we are seeing good traction on the dine in and takeaway channel which is driving overall SSSG also.
So for the quarter we ended up at an SSSG of 1% and in January we are trending above that number for the moment. Like I said the reed we launched the 99 CRISPR meal. In the second week of December and in the third week of at the end of the third week of Jan we have also augmented it with a specific advertising campaign that internally we say behavior changing advertising targeting the non users of KFC inviting them to come to our store. And once the campaign has broken again the impact that we have seen has been better.
So Jan has been better SSSG than the quarter that we have just concluded. Our innovation pipeline for the year is for the coming year is quite strong and we are quite excited about this innovation pipeline. We’ve just launched a global saucy concept called DUNT which is doing quite well. We continue to try and make the customer journey in our stores and on digital as frictionless as possible. Our digital kiosk Penetration now covers 70% of our estate and from an expansion perspective we opened 60 stores in the calendar year and we had called out that going forward also 60 to 80 is the range that we believe we should be.
These number of new stores we should be opening. I think we have tried to send across the dine in what we call the Pehla Nashat commercial across to as many people as possible. Please have a look at it. You’ll understand what we mean by saying inviting new consumers to the to the brand. This is currently being aired in Maharashtra state alone. I’ll now hand over to Vijay to talk about the KFC financial.
Vijay Jain — Chief Financial Officer
I’m on slide number 23 channel wise sales mix, dining and takeaway came at 56% for the quarter and delivery at 44% versus last year. Delivery mix at 41%. SSSG for the KFC brand was positive 1% and overall revenue grew by 11%. Calendar year 25 saw us adding 60 restaurants for the year. Gross margin was up by 40 basis points over last year and this improvement was on account of discount reduction and value offer construct rationalization. This along with the cost efficiencies meant that we actually improve our restaurant EBITDA over last year by 60 basis points.
It came at 18.8%. Slide number 26 gives 4 year and 5 quarter turn quarter 3 FY26. It can be clearly seen that this has been the best quarter for us in quite some time with profitability coming at 18.8% and as Sanjay mentioned their initial seven weeks read on the chicken crisper offer, chicken crisper meal offer as well as Janssg being positive, it augurs well for the brand as we move forward.
Sanjay Purohit — Group Chief Executive Officer and Whole Time Director
On Pizza Hut. I’m on slide 28 now the slide number 26. You can see the image of the ultimate cheese pizza that we launched. So again the innovation pipeline has been quite strong but in the absence of enough of marketing clout behind these innovations we have still not got great traction on the brand. We have combined that with strong value offers. Also we launched the 99 rupees four course meal again for lack of marketing support. Awareness of both the innovations as well as value offers has been limited. However we were able to back both the innovations as well as the value offers in Tamil Nadu where we continue to invest behind marketing.
And as I said earlier this market shows double digit delta performance on both SSSD as well as on the brand EBITDA. We opened 0na news for the year. Our really focus as you have heard us say earlier is on building the brand first and then on expansion. Vijay could you just tell us the Financials please?
Vijay Jain — Chief Financial Officer
Slide number 31 Channel wide sales mix dining and take away came at 53% and delivery at 47%. Again this shows the performance in the dining is better than the delivery. For the Pizza Hut Sapphire estate SSSG was minus 12% with overall revenue drop at 11% and the store addition for the calendar year 25 was zero. Gross margin dropped by 70 basis points over last year. But if you look at sequentially we improved on gross margin by 50 basis points sequentially and while restaurant EBITDA came in at minus 3.1% majorly on account of the negative leverage or negative operating Leverage on account of negative SSSG.
Slide number 34 gives you 4 year and 5 quarter trend. It can be seen not much improvement in terms of the ADS or the profitability. However as mentioned by Sanjay, Tamil Nadu continues to deliver double digit delta performance and once the CCI approval comes in I think we should be able to work closer with the franchisee partner and decide on the common strategy as we move forward.
Sanjay Purohit — Group Chief Executive Officer and Whole Time Director
On Sri Lanka the business continues to do really well. Our SSSG was 11% and our SG was 15% just as we did in India. We launched the Ultimate Cheese a pizza in Sri Lanka also. It’s done well. We also opened seven stores in calendar year 25 and this is the pace that we think we should be able to continue in CY26 also slide number.
Vijay Jain — Chief Financial Officer
39 channel wide sales mix, dining and takeaway at 61% while delivery at 39% against last year which came at 37% SSSG was up by 11% backed by a healthy transaction growth as well and overall revenue in terms of LKR grew by 15% in terms of INR grew by 16%. Gross margin was up by 160 basis points and this combined with this along with the SSIG Mentor restaurant EBITDA came in at 16.7%. The growth which we see in terms of absolute ebitda restaurant EBITDA is 7% in LKR terms and 8% in INR terms. However, there was a drop in terms of margin percentage 110 basis points drop.
This was mainly on account of significant increase in minimum wages which that country has seen and also quarter three in particular had cyclone related cost impact as well. Slide number 43 gives four year and five quarter trend. As can be seen, Sri Lanka continues to deliver healthy performance over last few quarters and we continue to reinforce our number one QSR status in the country.
Sanjay Purohit — Group Chief Executive Officer and Whole Time Director
And finally, apart from the positive news on improved profitability in quarter three plus improved SSSG in the month of Jan on kfc, we also are extremely pleased to announce our DGSI ESG ratings for 2025. We’ve got a global ESG rating score of 73 on 100 and our key highlights are that GS indisputably the number one QSR brand in the country and top three in the world and we are really the only Indian QSR brand to publish an ESG report under both gri, SASB and BRSR standard for the fourth consecutive year. So our standards so we really set the standard on ESG reporting for the entire industry.
So that’s it from both Vijay and me. We will open it up for questions now.
Questions and Answers:
operator
Thank you very much sir. We will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on their touchstone telephone. If you wish to remove yourself from the question queue, you may press star and two participants are requested to use handset while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. First question comes from the line of Gaurav Jagani with JM Financial. Please go ahead.
Gaurav Jagani
Thank you for taking my question and congrats on the strong operational performance I would say in the challenging environment. So my first question is with regards to the improvement that you are seeing, I think your other franchise partner has also indicated the same of improvement in January and even you know, one of the burger brands have also indicated this. So are you seeing a pickup in the overall macro environment or is it because of these specific initiatives that you have been taking? Is driving this positive SSG or momentum improvement in January as well?
Sanjay Purohit
Yes, possibly it is both. I don’t think where we sit we can comment on the overall macro. Certainly we are. We have seen this improvement start in December after the 99 Initiative. The Dine and takeaway business undoubtedly has seen a swing post that initiative happening like I think it is January. While we must not, we must not try and extrapolate this to, you know, infinity. But certainly Jan, starting off on a good note is a positive part. But let’s wait and see as to how the whole quarter goes.
Gaurav Jagani
The reason why I asked not when I meant the macro, it is specifically for the food services industry is what I meant.
Sanjay Purohit
I don’t think I can, I don’t think I can answer that. If you’re saying that other people have also shown this good, that means the industry is turning around.
Gaurav Jagani
Sure. And sir, this 99 initiative that you have started, would this be margin dilutive initiative or you know, at scale maybe you could, you know, still sustain the same level of profitability that you are doing right now.
Vijay Jain
So again, if I take you back to the Epic Saver campaign, at that time we were investing almost 100 odd basis points and we dropped our gross margin below last year by almost 100 basis points. If you look at current quarter, we are up by 50 odd basis points over last year. But however, this particular promotion started only in third week. Yes, this particular promotion would be a dilutive on gross margins but I don’t see an impact beyond 50 to 60 basis points from current level in terms of gross margins. Having said that if it can help us drive ssh, that will be more than compensated in terms of the overall profitability.
Gaurav Jagani
When you say from the base, I mean that would be Q3 right from the present level. Yeah, yeah, okay. Okay, thanks. And my second question is with regards to, you know, the Pizza Hut, you know, Pizza Hut, the brand has been struggling and you’re also not, you know, done new store editions. But where would you position yourself in terms of the recovery journey? I mean, the initiatives that you have taken so far. Do you think with these initiatives at least you can, you know, target a positive SSD in the coming financial year?
Vijay Jain
I think for Pizza Hut, it would be important that both the franchisee partners come together and decide on a way forward. And hopefully that can happen sooner once the CCI approval comes into the picture. Yet whatever coordination we can do within through the yum system, that will still go on. But I think that would be a key factor as we move forward. Along with that there would be some amount of like while we are. We have opened zero units in terms of net, we had few closures. I think those few closures will still happen in terms of trying to get sure that you minimize the losses.
But we don’t see a major expansion even in the coming year. And the overall focus will be to make sure the brand revives first. And I think for the brand revival, the franchise partners needs to come together to decide on the way forward. They are quite confident of how the work things are going in Tamil Nadu. And I think this is now third or fourth consecutive quarter where the Tamil Nadu has been able to deliver a differential performance visa with rest of the estate.
Sanjay Purohit
Tamil Nadu and Sri Lanka is based on Sri Lanka, Sri Lanka. In that market we continue to in tough conditions do well. So I think there’s a clear model for the revival of this brand which is not which is quite differentiated and I don’t think anyone else can copy easily.
Gaurav Jagani
So yes, there’s a great work in Sri Lanka that you have done and the profitability and these revenue growth is clearly reflecting that.
Sanjay Purohit
The same thing. If you go visit our stores in Tamil Nadu, you’ll understand they’re just fantastic stores.
Gaurav Jagani
Sure. And so just lastly on the overall this merger thing, you know, because this merger process is now on what kind of, you know, will the business will continue as usual? Will there be any changes in the functioning post the CCI approval comes in? If you can give some guidelines. Until the ultimate merger happens, the overall.
Vijay Jain
Entity continues to remain independent and function independently till the merger becomes effective. So and we had given up the timelines earlier. From now it could be maybe around 12 months for the merger to become effective. It has started with the board approval and it goes to the exchange for approval. Then CCI approval filing with NCLT. So all this can take 12 months. Till then both the companies operate independently. Having said that, once the CCI approval comes in, it could be anywhere between now and let’s say maybe around three to six months. One can expect a bit more closer coordination on some of the strategy points while each of the companies still continue to function independently.
Sanjay Purohit
And on the brand strategy. Overall brand strategy. In any case we are guided by yam, so I don’t think anything changes there. All three of us used to come and sit on the table together. I think specific operational issues can only be handled after CCI approval, especially in.
Vijay Jain
Case of Pizza Hut because there’s a territory overlap over there and hence that becomes otherwise. We used to coordinate between us. YAM and Devian used to coordinate anyways on the key brand, product and marketing strategy.
Gaurav Jagani
Thank you for answering my question.
operator
Thank you. The next question comes from the line of Rihansa yet with three Netra asset managers. Please go ahead.
Unidentified Participant
Yeah, good evening and thanks for taking the question. So like first my first question is around I want to understanding regarding your Tamil Nadu performance delta. So you have consistently highlighted that the Tamil Nadu deliver a positive double digit delta and profitability over the rest of India. So what specific behavior or competitive dynamics is that marked by driving this out performance and to what extent can be.
Vijay Jain
So in terms of Tamil Nadu? The first thing which is there Tamil Nadu is an exclusive market for Sapphire. So there is no overlap between us and Deviani. So there are no two different formats at play in the other markets. Safire largely operates dining forward Omnichannel restaurants. The operate in our territories. These are delivery format. So that would be one big difference between the territories and Tamil Nadu in terms of the format complications and the overlap. Now that because we are able to operate Safari exclusive territory, we are able to communicate it to the customer in terms of the brand experience, the restaurant experience by putting in money in that particular estate.
If it comes to putting in money in any other estate or any other territories, you require an alignment with the other franchisee partner for that additional investment. And unfortunately that alignment right now does not exist. It did exist last year for the first nine months. It gave us so far the upside. It did not give the other franchisee partner the required upside and understandably so they said we don’t want to invest further in terms of additional marketing investment. So that’s the deadlock which continues in other market which is because of territory overlap. And that does not exist in case of Tamil Nadu.
In terms of replicability, we are, it’s for safire. The experience remains the same even in the other markets from the format perspective. But our communication strategy is not similar at Tamil Nadu and that’s the difference. And the day we are able to align, we will be able to communicate. We don’t see any other reason why we should not be able to replicate the performance in any other territories as well.
Unidentified Participant
Okay. Okay. Basically you are saying that the main. Point here is a communication that you are not communicating, right?
Vijay Jain
Yes. And we were able to do that last year if you remember recall April 25th, April 24th to December 24th we were able to do a jointly align on a marketing communication strategy. And we did invest additional money between all three partners, us, Deviani and Yam. That is not happening anymore. Now it’s only Sapphire which invested in quarter three along with Yam in Tamil Nadu.
Unidentified Participant
Okay, and just a word with understanding regarding your digital transformation impact that you have mentioned that digital kiosk are now rolled out across 70% of the estate. Beyond operational frictionless experience, are you seeing a measurable increase in ticket size of upscaling successful chaos compared to traditional counter service?
Vijay Jain
Yes. So we are seeing increase in APC across the stores where we are seeing where the kiosks have been rolled out in case of kfc. But more than just the increase in apc, I think it’s just gives us the power as we move forward in terms of collecting the right customer data. It also gives power to the customer in terms of controlling its own ordering journey. And we believe as we move forward using intelligence, this should help us upsell and drive ticket size further. So I think it’s just the start of the journey. It’s long way to go.
Unidentified Participant
Okay. Okay, I can follow and. Thank you.
operator
Thank you. The next question comes from the line of Kayole bank with IIFL Capital. Please go ahead.
Unidentified Participant
Yeah, hi, this is Percy Pankati here. So I just wanted to understand the KFC margin expansion. Despite SSSG being weak, we generally understand that we get operating leverage at let’s say 3, 4% because the general inflation per store is around that level. But despite SSG being lower than that, we are seeing 20 basis points leverage between gross margin and EBITDA in addition to the 40 basis points at the gross margin. So overall 60. So can you comment on both the 40 as well as 20 as to what are the drivers which are driving. That.
Vijay Jain
The biggest driver has been the gross margin and the gross margin has been the function of the reduced discounts which we had and the rationalization of the value offer construct. You would recall that we had Epic Saver campaign at 299 in the H1 and while we continued with that particular campaign in Q3, we continued in a different whereas our gross margin was not taking hit as much as it took a hit in H1. So that this combination of discount reduction as well as this particular change on the value offer helped us get the gross margin back and it shows an upside over last year, whereas previous quarter we actually dropped on the gross margin compared to previous years.
So that’s on the gross margin side. On the cost efficiencies, definitely we had our efficiencies in terms of the labor cost as well as our store operating cost where whether it’s electricity, RMM and other lines we were able to squeeze enough amount to drive this particular efficiency. There’s also a small amount of benefit which if I call out in terms of the base effect, the Navratra actually fell in quarter two this year versus it was actually in quarter three. So that also helps it beat in terms of SSHG as well as the EBITDA when you start comparing with last year.
So these are the three things.
Unidentified Participant
Got it. Secondly, on the delivery versus dine in mix we have seen even for some other companies that dine in is now doing better versus a few quarters ago where delivery was growing faster and the change or the flip in equation has come not largely from improvement in the absolute growth rate of dine in. Of course that has happened, but it seems that the delivery growth rate, which used to be sort of better earlier, that is now struggling. So can you comment on the dynamics behind the delivery versus Dining mix?
Vijay Jain
So first of all, I won’t say dining right now, at least for the quarter just gone by, has performed better versus delivery. I would say the gap is definitely reduced. In case of kfc, of course in case of Pizza Hut the decline in dining has been less than the decline in the delivery. Coming back to the original point, whether it has plateaued out or slowed down, it has definitely slowed down. The kind of delivery goods you used to see earlier, you don’t see that anymore. Having said that, there is also I think each of the companies, especially Kafire, both the brands, the kind of offers, value promotions, deals we are focusing on at a dining and takeaway channel are something is also helping us bridge this particular Gap between dining and delivery.
So this KFC offer.
Unidentified Participant
Which was mainly a dine in promotion, you have reduced that right?
Vijay Jain
So the same thing now we have pivoted towards this chicken crisper burger meal that’s also a dining and takeaway offer. Whether it is our case of Pizza Hut which was buy 1 get 3 dining takeaway offer 99 course made in case of Pizza Hut again a dining takeaway offers. So most of these offers promotions are focused to driving dining and take away customers and drive those transactions up. So that’s another reason why it has the gap has bridged. Also previously I used to always call out when the delivery was mix was growing. I used to call out that apart from delivery performance there are other factors which were at play.
We used to call out that the mall estate post Covid from a real estate point of view the supply of estate was lower where mall typically has a higher dining mix. Late night delivery as an addition as an occasion was again a delivery occasion. So I think those two three factors which gave a delivery of Philippe has now probably got built in into the last year anyways. So now you’re looking at a real genuine like for like performance on delivery.
Unidentified Participant
But we are seeing actually decline. So if let’s say KFC SSSG is 1% if I break up that 1% into dine in versus delivery dine in is growing at low to mid single digit and delivery is probably declining at at least a low single digit or a mid single digit also. So just wanted to understand why something and which was doing well which even when the overall SSG was negative, maybe the delivery part was still flat to positive why that has gone into negative. Because if you see the overall delivery growth in India as a country if you use Swiggy Zomato as proxies that is not doing badly.
Both the companies are still growing at mid to high teens. So just wondering why our delivery SSSG is now in negative territory low to mid single digit.
Vijay Jain
See, I’m not sure how have you derived those numbers because we have never said that the dining for the quarter was above 1% or positive and delivery was negative. I’m still calling out.
Unidentified Participant
The dining mix has increased on a yoy basis.
Vijay Jain
No it is not Dining takeaway mix for the KFC has not increased on the yoy basis. In fact our delivery mix has increased by 300 basis points for KFC 41% delivery mix for KFC last year has gone to 44%.
Unidentified Participant
Oh, sorry, I got the mixed up. I’m sorry. Okay, okay, okay. I’LL take it offline.
Vijay Jain
No worries. It’s important that I clarify for all the listeners as well that the gap between dining and delivery is reducing. But still as of now, the quarter three delivery has performed better than dining for kfc for Pizza Hut, of course, the decline in dining has been lower than the decline line in case of delivery. So let me just clarify that for everybody. Yeah.
Unidentified Participant
Okay. That that’s all from me. Thanks and sorry for the confusion.
Vijay Jain
No worries. Thank you.
operator
Thank you. Ladies and gentlemen. If you wish to ask a question to the management, you may press star and 1. The next question comes from the line of ASYTOS with mit. Please go ahead.
Unidentified Participant
Yeah, hi, thanks for the opportunity and congrats on a good quarter for a long time on the profitability and benefit. So a couple of questions. First on the I wanted to check what what have been our FSTG growth in the context that we have now rationalized discounts also and we have been calling out better SSG growth for the last couple of quarters. So has it accelerated meaningfully from there and has it sustained in January as well, given discounts have been slightly rolled back? Second would be on the delivery revenue in the PBRI segment. So we have seen aggregators reporting slightly improved growth over the past couple of quarters on the delivery front.
But PBRI this quarter was a substantial decline in terms of delivery revenues. So anything that you want to call out there?
Vijay Jain
So in terms of SSDG for kfc, it’s largely in line with the way the SSHG is, so it’s a similar number or the similar range. So both FSTG and SSHG are right now going in hand in hand. And while you called out that we have rolled back Epic Saver campaign, but we have gone ahead with even more or pivoted towards even more aggressive campaign. So while Epic Saver we are toning it down considerably, the entire marketing box and the entire focus is on making sure that how this 99 offer on a chicken crisper burger meal is used to drive new transactions get new customers inside the stores.
So we have not really dialed down and whatever results we are seeing in the first seven weeks of this offer, definitely the transactions are growing faster than the the sshg. So SSTG is faster in and I’m talking about the stores where this has been rolled out in the first few weeks of December this was around 25% stores. Now in Jan this has gone up to 33% of our stores. So yes, we are seeing higher transaction growth than the SSHG in Jan. On the Pizza Hut with Pizza Hut again we don’t feel it’s an issue of a delivery or a particular store or a particular I think at a brand level we have called out that all brand codes which are required to be in place are in place.
So whether it is all about the customer proposition on dining Forward channel, whether it is about the format size, whether it is a delivery credentials on Swedish Zomato which used to be around 3.5 now gone above 4, backed by our Dragon Tail tool which is helping us drive deliver hot and fresh pizzas. So whether it is about our product innovations, it’s enough and more in the pipeline. So it’s all about how do we communicate to the customers. That’s where the focus should be and that’s where also the challenge lies right now with the limited marketing budget.
Unless we put in more money and we put in more money behind the revival of the brand consistently quarter after quarter, unless we do that, we will see a challenge and that’s what we hope to resolve with other franchisee partner pretty soon. So how we should understand is that.
Unidentified Participant
Large part of the problem related to your maybe ratings and all that or major part that is less your marketing.
Vijay Jain
It’s about the 20 years of legacy in terms of what we carried as a premium brand. Now that we are, we are as powerful in terms of our value as any other competitor and delivering great experience on top of that backed by a product innovation. If you don’t say to customer and if you don’t shout enough, everything goes down the drain and post CCI approval.
Unidentified Participant
Should we expect you to replicate the Tamil Nadu strategy across India or would that be something that you will take on later?
Vijay Jain
See, we are not hanged on to a particular thing. The idea is finally the two partners have to come together and decide on a common way forward. So it’s not about us solution or their solution as long as we all agree to a common solution. The good part about the retail or the QSR business is any solution can be experimented in a small territory, smallest or one state. They get the results and then replicate it across all the states. So it’s not about Tamil Nadu solution. Finally, whatever both partners agree, we have to agree on one way forward and then roll it out Pan India.
Unidentified Participant
One more question if I may. On the Sri Lanka business, we have seen continued good growth improvement across all metrics.
Vijay Jain
So do we have an opportunity to. Accelerate the store growth there from 8 to 10 to maybe low double digit or something like that?
Sanjay Purohit
We believe it should be at least high single digit for the year coming year at least continue to be high single digit. Possibly touching 10 maybe, but I would say high single digit.
Unidentified Participant
Thanks a lot.
operator
Thank you. A reminder to all participants that you may press star and one to ask a question. As there are no further questions from the participants, I would now like to hand the conference over to Mr. Sanjay Purowat for closing comments.
Sanjay Purohit
Yeah. Thank you very much everybody for attending our quarter three business performance presentation. Like I said, we saw improved profitability on the back of restaurant EBITDA of KFC coming at 18.8%. KFC grew at 11, Pizza Hut declined at 11 and Sri Lanka grew at flood 15%. And from an ESG perspective, our ESG ratings for fourth year in a row, we’ve continued to improve and we are now among the top three QSR companies in the world and by far the number one company in India. That’s it for me. Thank you so much.
Vijay Jain
We’ll close the conference now.
Sanjay Purohit
Bye bye.
operator
Thank you sir. On behalf of FIO Foods. That concludes this conference. Thank you for joining us. And you may now disconnect your lines. Thank you.