Devyani International Limited has published extracts of its unaudited financial results for the quarter and nine months ended December 31, 2025, in newspapers as part of regulatory compliance under Regulation 47 of SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.

Regulatory Compliance and Publication

The company's Board of Directors, at its meeting held on February 4, 2026, considered and approved the unaudited financial results for Q3FY26. Chief Sustainability Officer and Company Secretary Pankaj Virmani signed the regulatory filing to both National Stock Exchange of India Limited and BSE Limited, ensuring compliance with stock exchange requirements.

Financial Results Accessibility

The complete financial results, along with limited review reports, have been disseminated on the company's website at https://dil-rjcorp.com/financial-results.pdf . The company has also provided a QR code for easy access to the financial documents, demonstrating its commitment to transparency and stakeholder communication.

Previous Financial Performance Context

The company had earlier reported Q3FY26 consolidated revenue from operations of ₹14,409.00 million, marking an 11.30% increase from the corresponding quarter last year. The leading Quick Service Restaurant operator also made available the audio recording of its investor and analyst conference call held on February 4, 2026, following the quarterly results announcement.

Corporate Structure and Leadership

The regulatory filing was signed by Manish Dawar, Whole-time Director and CFO (DIN: 00319476), on behalf of the Board of Directors. The company maintains its registered office at F-2/7, Okhla Industrial Area, Phase-I, New Delhi-110020, with its corporate office located at Plot No-18, Sector-35, Gurugram-122004, Haryana.

Brand Portfolio and Market Presence

Devyani International operates a diversified portfolio of Quick Service Restaurant brands including KFC, Pizza Hut, Costa Coffee, Tealive, Sanook Kitchen, New York Fries, Vaango, Goila Butter Chicken, and Biryani By Kilo. The company's extensive network spans across multiple cities in India and international markets, making it one of the leading QSR operators in the region.

Source: Company Filing

Devyani International and Sapphire Foods India Limited have announced a transformative merger that will create one of India's largest food and beverage platforms. The boards of both companies approved the merger on January 1, 2026, marking a significant milestone in India's quick service restaurant sector.

Merger Structure and Financial Impact

The transaction involves a comprehensive share swap arrangement with specific terms for different stakeholder groups:

The merger includes a promoter-level transaction where RJ Corp will acquire 18.5% stake from Sapphire Foods Mauritius Limited at a floor price of ₹280 per share. This bilateral arrangement, to be completed within 3-15 months, ensures RJ Corp maintains significant shareholding in the combined entity as required by Yum! Brands.

Expected Synergies and Timeline

The companies have identified substantial cost synergies expected from the merger:

These synergies will emerge from general and administrative cost optimization, enhanced Yum! incentives, improved procurement negotiations, and operational efficiencies. The figures represent net benefits after accounting for integration costs and new functional responsibilities.

Operational Transformation and Brand Management

The merger will significantly alter operational responsibilities between the franchisee and Yum! Brands. Devyani International will assume expanded roles across both major brands:

Pizza Hut Operations:

• Marketing and innovation functions transfer to merged entity
• Technology and supply chain management responsibilities
• 10-year incentive structure for brand turnaround
• Flexibility to restructure store portfolio without net unit reduction requirements

KFC Operations:

• Technology and supply chain management transfer
• Marketing and innovation remain with Yum! Brands
• Continued expansion under existing development agreements

The company has already initiated capability building, hiring functional leaders and shortlisting a global technology partner to support the transformation. Management expects to have all new capabilities operational by June 2026, well before merger completion.

Strategic Market Positioning

The combined entity will operate in India's rapidly expanding food services market, estimated at over $100 billion, with the QSR segment alone exceeding $25 billion. The merger creates a unified franchise partner with national reach, enhanced bargaining power with landlords and suppliers, and improved capital allocation capabilities.

The merged platform will house multiple brand portfolios including KFC, Pizza Hut, Costa Coffee, Vaango, Biryani By Kilo, and other regional brands, providing comprehensive coverage across different consumer segments and dining formats.

Pizza Hut Revival Strategy

Management outlined specific plans for Pizza Hut's turnaround, targeting positive brand contribution margins in the first year and low double-digit margins thereafter. The strategy focuses on:

• Store portfolio optimization with closure and relocation flexibility
• Same-store sales growth recovery through unified marketing approach
• Technology infrastructure enhancement for improved delivery capabilities
• Innovation initiatives under direct franchisee control

The 10-year incentive structure from Yum! Brands provides long-term support for the brand revival efforts, reflecting mutual commitment to Pizza Hut's success in the Indian market.

Technology and Infrastructure Development

The merged entity will implement a unified technology platform across all brands, featuring common backend infrastructure with brand-specific consumer interfaces. This approach will enable faster delivery times, improved customer experience, and operational efficiencies while maintaining distinct brand identities.

The companies expect the merger to position them competitively against market leaders through enhanced speed of service, innovation capabilities, and national-scale execution. The transaction represents a strategic consolidation in India's fragmented QSR market, creating a platform capable of capturing the sector's significant growth potential.