Devyani International has successfully completed the divestment of its stake in Peanutbutter and Jelly Private Limited through a subsidiary transaction that reshapes the company's corporate structure. The completion was announced on January 8, 2026, marking the conclusion of a deal initially disclosed in late December 2025.

Transaction Details

The divestment involved Sky Gate Hospitality Private Limited, a subsidiary of Devyani International, selling its entire 51% equity stake in Peanutbutter and Jelly Private Limited to Heritage Foods Limited. The transaction parameters are outlined below:

Corporate Structure Impact

The completion of this sale has immediate implications for Devyani International's corporate structure. Peanutbutter and Jelly Private Limited, which was previously a subsidiary of Sky Gate and a step-down subsidiary of Devyani International, has ceased to hold these relationships with immediate effect from the completion date.

The transaction was executed under a Share Purchase Agreement that Sky Gate Hospitality had entered into with Heritage Foods Limited. This agreement was initially disclosed to the stock exchanges on December 30, 2025, in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015.

Regulatory Compliance

Devyani International has maintained full transparency throughout this transaction process by providing timely disclosures to both the National Stock Exchange of India Limited and BSE Limited. The company's Chief Sustainability Officer and Company Secretary, Pankaj Virmani, signed the completion notification, ensuring proper regulatory compliance.

Business Context

Devyani International operates as a multi-brand restaurant company with franchises including KFC, Pizza Hut, Costa Coffee, and several other food and beverage brands. The divestment of the Peanutbutter and Jelly stake represents a strategic corporate action that allows the company to optimize its subsidiary portfolio and focus resources on core operations.

Devyani International Limited, one of India's largest Quick-Service Restaurant (QSR) companies and franchisee partner for global brands including KFC, Pizza Hut and Costa Coffee, has announced the publication of its inaugural Sustainability Report for FY2024-25. This milestone represents the company's commitment to embedding sustainability across its business operations and transparent ESG disclosure practices.

Report Framework and Standards

The sustainability report has been prepared with reference to internationally recognized frameworks including Global Reporting Initiative (GRI) and Sustainability Accounting Standards Board (SASB) standards. The report aligns with India's evolving sustainability and disclosure requirements, including Business Responsibility and Sustainability Reporting (BRSR), ensuring comprehensive coverage of environmental, social and governance aspects.

Environmental and Social Initiatives

The report highlights Devyani International's focus on environmental stewardship through multiple initiatives designed to reduce environmental impact and promote sustainable operations. Key environmental efforts include:

• Energy-efficiency initiatives across restaurant operations
• Rooftop solar installations to harness renewable energy
• Responsible waste management practices

On the social impact front, the company has implemented comprehensive programmes addressing employee welfare and community development:

• Inclusive employment practices promoting diversity
• Community outreach programmes supporting local communities
• Employee well-being initiatives ensuring workforce satisfaction

Governance and Leadership Commitment

Strong governance frameworks form the cornerstone of DIL's sustainability strategy, supported by Board-level oversight and transparent ESG disclosures. The company has established robust mechanisms to ensure accountability and continuous improvement in sustainability performance.

Mr. Varun Jaipuria, Promoter and Non-Executive Director, Devyani International Limited, commented on the release: "Publishing our first Sustainability Report is a proud milestone that underscores Devyani International's dedication to embedding sustainability across our business. Through meaningful ESG initiatives — from operational efficiency to inclusive social impact — we are committed to balancing growth with responsibility."

Company Profile and Operations

Devyani International Limited operates one of India's largest chain quick service restaurant networks, with over 2,000 stores across more than 280 cities in India, Thailand, Nigeria, and Nepal. The company holds the distinction of being the largest franchisee of Yum! Brands in India and Nepal, while serving as the sole franchisee in India for several international brands including Costa Coffee, Tea Live, New York Fries, and Sanook Kitchen.

The company's portfolio includes strong indigenous brands such as Vaango, a South Indian vegetarian cuisine concept, and The Food Street, a food court format. DIL has also strengthened its Indian cuisine offerings through the acquisition of Sky Gate Hospitality, which owns popular brands including Biryani By Kilo and Goila Butter Chicken.