Devyani International Limited has informed the Exchange about Transcript
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Devyani International (DEVYANI) reported Q1 FY26 consolidated revenue of INR 1,357 crore, up 11.1% year-on-year, with reported EBITDA at INR 205 crore (15.1% margin). Brand contribution margin, however, dipped to 13.1% from 15.3% last year due to higher aggregator/delivery costs, GST on rent, raw material inflation, and stepped-up promotional spending. KFC India (704 stores) saw same-store sales stabilising at -0.7%, while Pizza Hut continued to shrink its footprint (618 stores, SSSG -4.2%). The company concluded its acquisition of Sky Gate Hospitality, taking its stake to 86.13% and adding 105 Biryani by Kilo and Goila Butter Chicken outlets. Three new international brands — New York Fries, Tealive, and Sanook Kitchen — are set to launch next quarter. Management aims to add 100-110 net new KFC stores this year and is targeting KFC average daily sales of INR 100,000.
Short-term margin pressure is acknowledged and likely to persist through the year, which may weigh on the stock. However, the Sky Gate acquisition diversifies the portfolio and management is guiding for margin improvement from Q3 FY26 onwards as promotional spending is optimised, which could support a recovery narrative.