Devyani International has announced significant operational milestones, including achieving breakeven brand EBITDA for Biryani By Kilo and Sky Gate ahead of schedule. The company continues its strategic restructuring of the Pizza Hut business while demonstrating improved performance across other brand segments.

Early Breakeven Achievement

The company has successfully reached breakeven brand EBITDA for both Biryani By Kilo and Sky Gate brands earlier than anticipated. This achievement demonstrates the effectiveness of the company's operational strategies and brand management across its diversified portfolio.

Pizza Hut Strategic Restructuring

Devyani International has outlined a clear timeline for its Pizza Hut business restructuring. The company will not open new Pizza Hut locations during 2025 and 2026, maintaining its focus on profitability over expansion. The only exception to this policy will be replacement stores for unprofitable outlets that are being closed.

Operational Focus and Brand Portfolio

The company's approach reflects a strategic shift toward sustainable profitability across its brand portfolio. While Pizza Hut undergoes restructuring through selective closures and operational refinement, the early breakeven achievement for Biryani By Kilo and Sky Gate demonstrates successful brand management and operational execution in other segments.

This dual approach of restructuring underperforming segments while accelerating profitable brands positions Devyani International for improved overall financial performance across its diversified restaurant portfolio.

Devyani International Limited's board of directors convened on February 4, 2026, approving significant strategic decisions including a major acquisition and capital restructuring. The meeting, held from 11:00 AM to 11:55 AM, resulted in key approvals that will strengthen the company's market position in the food and beverages sector, with formal regulatory disclosures filed under SEBI Listing Regulations.

Strategic Acquisition of Sky Gate Hospitality

The board approved the acquisition of approximately 11.4% additional equity stake in Sky Gate Hospitality Private Limited from its promoters and founders. This strategic move will transform Sky Gate into a wholly-owned subsidiary of Devyani International.

Sky Gate Hospitality Profile

Sky Gate Hospitality Private Limited, incorporated on July 28, 2015, operates in the food and beverages industry with a strong financial track record. The company has demonstrated consistent growth over the past three years.

*Note: FY2025 figures exclude turnover from Krazy Kebab Co. and Peanutbutter and Jelly Private Limited.

Share Capital Restructuring

The board approved comprehensive re-classification of the company's authorized share capital, subject to shareholder and regulatory approvals. The restructuring involves modification of the capital clause in the Memorandum of Association.

Preference Share Issuance

As part of the acquisition consideration, the board approved issuance of up to 3,00,000 fully paid-up non-convertible redeemable preference shares to Sky Gate's promoters and founders.

Regulatory Compliance and Approvals

The company has filed comprehensive disclosures under Regulation 30 of SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, with both NSE and BSE. The transaction constitutes a related party transaction as Sky Gate is already a subsidiary of Devyani International. However, the company's promoter group has no interest in Sky Gate, and the proposed investment is conducted at arm's length.

The board has initiated the postal ballot process to seek equity shareholders' approval for the proposed transactions. The acquisition requires no governmental or regulatory approvals beyond standard shareholder consent procedures, aligning with Devyani International's expansion strategy in the food and beverages sector.