Devyani International Limited delivered its highest-ever quarterly EBITDA of ₹255 crore in Q1FY27, expanding margins to 16.1% as consolidated revenues surged 16.5% year-on-year to ₹15,805 million. The quick service restaurant operator posted a profit after tax of ₹171 million, marking the highest figure in eight quarters, while pre-tax profit reached ₹229 million, representing more than a six-fold increase compared to the previous year. This performance underscores the company’s ability to drive profitable growth despite operational headwinds such as LPG cost inflation and wage hikes.

The results were filed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, with the National Stock Exchange of India Ltd. and BSE Limited on July 29, 2026. The filing highlights broad-based operational improvements, with positive same-store sales growth (SSSG) recorded across all major brands in the portfolio. Management attributed the strong start to FY27 to the momentum built in the second half of FY26, anchored by robust demand for key offerings.

Financial Performance Highlights

The company’s financial metrics for the quarter ended June 30, 2026, reflect significant top-line and bottom-line strength:

Brand-Wide Sales Growth

Devyani International reported positive SSSG across its diverse brand portfolio, indicating resilient consumer demand. KFC, the largest contributor, delivered an SSSG of 3.3%, continuing its trajectory of double-digit sales growth. Other international and homegrown brands also performed strongly:

• Costa Coffee: Recorded an SSSG of 10.2%.
• Biryani by Kilo (BBK): Achieved an SSSG of 7.2%.
• Vaango!: Delivered an SSSG of 7.1%.
• Pizza Hut: Showed sequentially better SSSG numbers.

Ravi Jaipuria, Non-Executive Chairman, noted that the business has improved profitability despite volatile operating environments and seasonal complexities. He highlighted that the forecast of a below-normal monsoon season and El Niño risks serve as reminders that consumption recovery in India is not linear, yet the company remains on track to meet its store expansion targets for FY27 with a current network of 2,255 outlets.

Strategic Developments

The merger process with Sapphire Foods India Limited continues to progress according to expected timelines. Devyani International received approvals from both the NSE and BSE in June 2026, advancing the regulatory filings required for the next phase. The company aims to complete the merger by the end of FY27. Additionally, management emphasized the successful integration of new leadership under Manish Dawar, describing early cultural and operational shifts as part of the "DIL 2.0" initiative.

What the Numbers Show

The divergence between the 16.5% revenue growth and the 38% increase in operating EBITDA indicates significant operating leverage. With the brand contribution margin improving by 1.1% year-on-year, the company is effectively managing input cost inflation, particularly regarding LPG and wages. This margin expansion suggests that volume growth is translating into disproportionate profit gains, reinforcing the scalability of its franchise model even amidst macroeconomic uncertainties.

Source: https://lodr-files.dhan.co/lodr-inputs/Company/INE872J01023/83497611-74cd-4035-87cf-4faad1e507ca.pdf

Devyani International reported a consolidated net profit of ₹171.04 million for the quarter ended June 30, 2026 (Q4FY26), marking a significant turnaround from the net loss of ₹98.39 million recorded in the preceding quarter. The company’s consolidated revenue from operations rose to ₹15,805.16 million in Q4FY26, up from ₹14,368.62 million in Q3FY26, reflecting sustained top-line momentum. This performance underscores improved operational efficiency and cost management within its food and beverages segment.

The Board of Directors approved the unaudited financial results at a meeting held on July 29, 2026, pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Walker Chandiok & Co LLP and O P Bagla & Co LLP, the joint statutory auditors, issued limited review reports with unmodified opinions on both the consolidated and standalone financial statements. The results were prepared in accordance with Indian Accounting Standards (Ind AS) notified under the Companies Act, 2013.

Consolidated Financial Performance

Devyani International’s consolidated EBITDA expanded to ₹2.54 billion in Q4FY26, compared to ₹2.1 billion in the year-ago period (Q4FY25). The EBITDA margin improved to 16.1% from 15.2% in the corresponding quarter of the previous year. Total income for the quarter stood at ₹15,997.07 million, comprising ₹15,805.16 million from operations and ₹191.91 million from other income. Total expenses were ₹15,768.48 million, including ₹4,882.40 million for cost of materials consumed and ₹2,301.07 million for employee benefits.

Standalone Results and Strategic Developments

On a standalone basis, Devyani International reported a net profit of ₹85.01 million in Q4FY26, recovering from a net loss of ₹127.35 million in Q3FY26. Standalone revenue from operations increased to ₹9,985.23 million from ₹8,789.44 million in the previous quarter. The company also disclosed progress on key strategic initiatives, including the amalgamation of Sapphire Foods India Limited, effective April 1, 2026, under a scheme approved by the Board. Additionally, the National Company Law Tribunal (NCLT) pronounced its First Motion Order on July 23, 2026, regarding the amalgamation of Sky Gate Hospitality Private Limited and its subsidiaries into Devyani International.

What the Numbers Show

The shift from a quarterly net loss to a profit of ₹171.04 million highlights the impact of operational leverage as revenue growth outpaced expense inflation. The expansion in EBITDA margin to 16.1% suggests effective control over variable costs despite rising input prices. Furthermore, the absence of exceptional items in Q4FY26, unlike the prior year which saw labor code-related provisions, indicates a normalization of non-recurring impacts, allowing core operational performance to drive profitability.