Devyani International Limited delivered a record quarterly EBITDA of ₹255 crore (₹2,548 million) in Q1FY27, driven by a 16.5% year-on-year revenue surge to ₹15,805 million. During its earnings call on July 29, 2026, management outlined a strategic pivot to restore dine-in salience at KFC to 59-60%, up from current levels, while confirming that the proposed merger with Sapphire Foods India Limited remains on track for completion by the end of FY27. The company’s profit after tax (PAT) reached ₹171 million, marking the highest figure in eight quarters.

The unaudited financial results were approved by the Board of Directors on July 29, 2026, and disseminated under Regulation 33 read with Regulation 47(1)(b) of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The earnings call transcript was subsequently filed under Regulation 30. Whole-time Director Manish Dawar and Non-Executive Chairman Ravi Jaipuria led the discussion, emphasizing operational efficiency amidst macroeconomic headwinds including LPG cost inflation and wage hikes.

Financial Performance & Brand Metrics

Devyani’s operating EBITDA rose 38% year-on-year to ₹1,511 million, reflecting significant operating leverage. Brand contribution expanded by 1.1% year-on-year to 14.2%, totaling ₹224 crore. Gross margin improved by 0.9% to 69.1%. Key brand-specific performances included:

KFC’s offline salience improved by more than 3 percentage points compared to the prior year quarter, reaching 57%. Management attributed this to a deliberate rebalancing of marketing spend away from deep online discounting towards driving in-store visits. Pizza Hut, currently undergoing a “back-to-basics” reset, saw sequential improvement in same-store sales growth (SSSG) despite posting a brand contribution loss of ₹4 crore due to operating deleverage.

Strategic Outlook & Merger Progress

Manish Dawar highlighted that the new leadership team, including a newly appointed Chief Technology Officer and Chief Marketing Officer, is fully in place. A key initiative under “DIL 2.0” is the consolidation of business development activities under a single leader to optimize store opening strategies. The company opened 11 net new KFC stores and 3 net new Biryani By Kilo (BBK) stores in India during the quarter, ending with a global network of 2,255 outlets.

Regarding the merger with Sapphire Foods, Devyani received approvals from both the NSE and BSE in June 2026. Management stated that integration preparations are underway, noting that IT systems between the two entities are largely similar as they previously operated on the same Yum! Brands technology stack. Dawar indicated that major energy behind Pizza Hut’s turnaround will be deployed in FY28 once the merged entity structure is finalized.

What the Numbers Show

The divergence between 16.5% revenue growth and 38% operating EBITDA growth signals strong cost control and margin expansion capabilities. With gross margins improving despite input cost inflation, the company is successfully passing through price increases while maintaining volume growth. The strategic focus on increasing KFC’s dine-in share from historical lows suggests management views delivery channel saturation as a near-term constraint, aiming to unlock higher average daily sales (ADS) through premium in-store experiences rather than volume-driven delivery discounts.

Devyani International has announced plans to grow its Biryani By Kilo brand to ₹1,000 crore in revenue over the coming few years, according to a recent concall update. The company indicated that it intends to deploy various growth strategies to achieve this revenue target, underscoring its long-term commitment to scaling the brand.

Biryani By Kilo Revenue Target

The concall update revealed Devyani International's ambition to transform Biryani By Kilo into a ₹1,000 crore revenue business. The company has outlined a multi-pronged approach through various growth strategies to reach this milestone within the coming few years.

Strategic Focus

The announcement reflects Devyani International's strategic intent to leverage Biryani By Kilo as a significant growth engine within its portfolio. By setting a clear revenue milestone of ₹1,000 crore, the company has signaled its confidence in the brand's scalability and market potential. The concall update did not specify the individual growth strategies in detail, but the overarching direction points to an accelerated expansion plan for the brand over the medium term.