Devyani International Limited has announced its audited financial results for the quarter and full financial year ended March 31, 2026. The Board of Directors approved the audited standalone and consolidated financial results in compliance with SEBI regulations. The results were audited by joint statutory auditors Walker Chandiok & Co LLP and O P Bagla & Co LLP. The company reported a net loss from continuing operations of INR 133.89 million for Q4 FY26, compared to a net loss of INR 167.63 million in Q4 FY25. Including discontinued operations, the net loss for Q4 FY26 was INR 98.39 million.

Consolidated Financial Performance

On a consolidated basis, revenue from operations for Q4 FY26 stood at INR 14,368.62 million, an increase of 18.5% compared to INR 12,125.91 million in Q4 FY25. For the full fiscal year FY26, consolidated revenue reached INR 56,114.79 million against INR 49,510.52 million in FY25. Total income for the quarter was INR 14,510.08 million versus INR 12,257.76 million in Q4 FY25. Total expenses for the quarter rose to INR 14,690.85 million from INR 12,479.06 million in the prior year period. Consolidated EBITDA for Q4 FY26 improved to INR 2,295 million from INR 2,009 million in the same quarter of the previous year. The EBITDA margin for Q4 stood at 16.0%, compared to 16.6% in Q4 FY25.

Segment Performance

KFC India reported same-store sales growth (SSSG) of 4.9% in Q4 FY26, its highest in the last 14 quarters, driven by value-led initiatives and accessibility-focused campaigns. This momentum translated into nearly 15% year-on-year growth for KFC, with Q4 revenues of INR 586 crore. Brand contribution grew nearly 20% year-on-year to reach INR 99 crore with brand contribution margins improving to 17.0% for the quarter. The company ended the year with 783 KFC stores across India.

International business revenue grew 20.0% YoY to Rs. 5,033 million, crossing INR 500 crore in quarterly revenues for the first time. Improved gross margins and operating leverage drove brand contribution margins to 17.7%, with brand contribution reaching INR 89 crore. The company's own brands, including BBK and Vaango, contributed Rs. 911 million in revenue for the quarter, growing 11.5% on a like-for-like basis. Biryani By Kilo achieved positive brand contribution, and the company has initiated measured expansion in offline channels via Express formats. Pizza Hut India revenue declined 3.5% YoY to Rs. 1,692 million during the quarter, with SSSG at minus 3.7%. The company ended the year with 639 Pizza Hut stores with no net additions during the quarter.

Strategic Outlook and Guidance

Management outlined the "DIL 2.0" strategy, focusing on digital transformation, automation, and AI to enhance efficiency and scalability. The company has achieved more than 80% digital kiosk penetration across its KFC store network and is making progress on DIL Commerce, its unified technology platform. Regarding the proposed merger with Sapphire Foods India Limited, the company stated the process is on track and expects completion by the end of the current financial year.

For FY27, the company expects to add approximately 200 to 225 net new stores. KFC is expected to contribute 100 to 110 stores, with the balance driven by Costa Coffee, Biryani By Kilo, and international businesses. The company has decided to discontinue the Tea Live brand in India and Thailand. Management expressed optimism about demand conditions, noting stable sentiment and improvement in consumption trends, while remaining cautious about macroeconomic factors.

Devyani International has received Buy ratings from three prominent global brokerages — Goldman Sachs, Citi, and Jefferies — each citing a combination of improving operational metrics, KFC same-store sales growth (SSSG) recovery, and the ongoing Devyani-Sapphire merger as key drivers of their positive outlook.

Brokerage Ratings and Target Prices

The three brokerages have set varying target prices, reflecting their individual assessments of the company's near-term and medium-term prospects. The table below summarises the ratings and target prices:

Goldman Sachs: KFC Store Expansion and Margin Recovery in Focus

Goldman Sachs has maintained its Buy rating with a target price of ₹142, pointing to a significant improvement in KFC SSSG during Q4 and continued demand momentum into 1QFY26. The brokerage also highlights the company's plans to add 100–110 KFC stores in FY27 as a key growth lever. Goldman Sachs further notes a margin-accretive dine-in-led recovery and stronger management bandwidth as positive factors, particularly in the context of the upcoming Sapphire merger.

Citi: Strong Q4 Performance and Positive KFC SSSG

Citi has maintained its Buy rating while raising its target price to ₹177, the highest among the three brokerages. The firm cites strong Q4 revenue and EBITDA growth that came in ahead of estimates, with KFC SSSG turning positive at 4.9%. Citi also notes sustained demand momentum over the last 45 days, an improved dine-in focus, and progress in the Devyani-Sapphire merger. Additionally, the brokerage expects QSR players to benefit from rising discretionary spending and continued same-store sales growth improvement.

Jefferies: Multi-Quarter High in KFC SSSG and New Management

Jefferies has maintained its Buy rating with a target price of ₹155, highlighting sequential improvement in operating trends with KFC SSSG reaching a multi-quarter high. The brokerage also points to resilient margins led by international operations and earnings that came in ahead of estimates. Jefferies further notes continued network rationalisation, optimism around demand recovery, and store expansion as positive catalysts. The Devyani-Sapphire merger and a new management team taking charge in 1Q are also cited as meaningful developments.

Key Themes Across Brokerages

Across all three brokerage reports, several common themes emerge as central to the positive outlook on Devyani International:

• KFC SSSG recovery: All three brokerages highlight improvement in KFC same-store sales growth as a critical operational milestone.
• Devyani-Sapphire merger: Progress in the merger is viewed as a structural positive across all three reports.
• Demand momentum: Sustained consumer demand, particularly in the dine-in segment, is cited as a near-term tailwind.
• Store expansion: Plans to grow the KFC network, including the addition of 100–110 stores in FY27, underpin medium-term growth expectations.
• Management transition: A new management team taking charge in 1Q is noted as a factor that could strengthen execution capabilities.