Devyani International Limited (DEVYANI) share price

₹128.98 on NSE as of 2026-10-07. -0.42% on the day. market cap ₹15,902 Cr. 52-week range ₹94.59 to ₹171.74. Consumer Services.

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Devyani International Q1 FY27: ₹1,581 Cr of Revenue, ₹254 Cr of Operating Profit, and a ₹17 Cr Bottom Line

At a glance

Devyani International runs KFC and Pizza Hut in India, alongside Costa Coffee, Biryani By Kilo and Vaango.

Revenue for the three months to June 2026 was ₹1,581 crore, against ₹1,357 crore a year earlier. That is a rise of 16.5%. It also sits 10% above the previous quarter's ₹1,437 crore. Operating profit was ₹254 crore, against ₹206 crore a year earlier. The operating margin was 16%.

Profit before tax was ₹22.9 crore. Management describes it as the highest in eight quarters, after four straight quarters below zero. Profit after tax was ₹17 crore, against ₹2 crore a year earlier. The March quarter had produced a loss of ₹10 crore. Earnings per share, the profit attached to each share, came to ₹0.12.

Same-store sales, which count only outlets open a year or more, grew 3.3% at KFC India, management reported. Costa Coffee grew 10.2% and Biryani By Kilo 7.2% on the same measure. Vaango grew 7.1%, while Pizza Hut fell 2.2%.

The quarter ended with 2,255 stores, one fewer than at the end of March. KFC India added 11 outlets net, and Pizza Hut closed 13 net.

Behind that quarter sits the year to March 2026. Revenue was ₹5,611 crore and the net loss ₹43 crore. The trailing twelve months still carry a loss of ₹28 crore. Sales have compounded at 23% a year over three years. Return on equity over the same three years was minus 3%. That ratio measures profit against the money shareholders have in the business.

Introduction

Devyani International is the largest franchisee of Yum! Brands in India, running KFC and Pizza Hut. A franchisee pays a brand's owner for the right to run its outlets. Devyani is also the franchisee for Costa Coffee here.

The company sits inside RJ Corp, the Ravi Kant Jaipuria group founded in 1991. That group's other ventures include Varun Beverages, ice cream, healthcare and education, spread across more than 14 countries.

The last eighteen months have been busy. In June 2025 Devyani bought 80.72% of Sky Gate Hospitality through a preferential issue of shares. The price was about ₹419.6 crore. Sky Gate is the parent of Biryani By Kilo and Goila Butter Chicken. That holding became a full one by March 2026, after a further purchase of about ₹57.5 crore from the founders. A scheme to merge Sky Gate into the parent cleared its First Motion Order on 23 July 2026. That order came from the Chandigarh bench of the National Company Law Tribunal, the court that approves such mergers.

The larger item is the proposed merger with Sapphire Foods India Limited, the other big Yum franchisee in the country. The terms are 177 Devyani shares for every 100 Sapphire shares, with an appointed date of 1 April 2026. NSE and BSE issued their no-objection and no-adverse-observation letters on 12 June 2026. The chairman's stated target is completion by the end of the year to March 2027.

The management bench has been rebuilt along the way. Manish Dawar was elevated to President and Group CEO from 1 April 2026, and reappointed for three years from February 2027. A new chief financial officer, chief technology officer and general counsel have come in. Pizza Hut received a replacement chief executive in April 2026. Shivashish Pandey resigned as CEO of Yum Brands, effective 28 February 2026. The chairman calls the result "DIL 2.0".

In July 2026 the company extended a convertible loan of 400 million Thai baht to its Thai entity. The stake there rose to 56.7%. That followed an infusion of about 1,210 million baht, or roughly ₹347.3 crore, announced in March. On 29 July 2026 the company granted 27,13,700 stock options under its 2021 employee scheme.

Business model

They sell fried chicken. Then pizza, coffee, biryani and dosas, increasingly in the same building.

The structure is franchise-in, retail-out: Devyani rents the brands and runs the shops. It pays Yum! Brands an opening fee of US$53,400 for each new KFC and US$26,700 for each new Pizza Hut. Royalty is then 6.3% of gross revenue on both brands. Costa Coffee International takes 6% on that brand. The contracts also require a further 6% of revenue to be spent advertising KFC and Pizza Hut. Yum collaborates on store locations, product development, branding and technology. Devyani puts up the capital, the leases, the staff and the risk.

By management's own segment reporting for the three months to June 2026, KFC India brought in ₹684 crore. That is about 12% more than a year earlier, at a gross margin of 69.4%. Brand contribution, what a brand leaves after its own direct costs, was ₹115 crore. Pizza Hut India's revenue was ₹184 crore, with a brand contribution loss of ₹4 crore. Own brands, including Biryani By Kilo and Vaango, brought in ₹98 crore. Franchise brands, led by Costa, grew about 6% from a year earlier. International revenue was ₹523 crore, up 20.7%, across Thailand, Nigeria and Nepal.

Arithmetically, KFC and international together are roughly three-quarters of revenue. Pizza Hut runs 626 stores, and that network shrank by 13 outlets in the quarter.

Then there is the pivot on delivery. KFC delivery went from under 10% of sales before COVID to 45-46% now. Management's conclusion is that delivery has stopped being incremental and is "actually eating into the dine-in sales". Marketing has been, in management's words, "deliberately rebalanced towards driving dine-in visits rather than deep online discounting". Dine-in reached 57% of the mix this quarter, against a stated ambition of 59-60%. After a decade of aggregator apps, the strategic frontier is getting people to sit at a table again.

Management notes that existing stores have spare capacity to absorb the shift, so no extra capital spending is required. The 2,255 stores were already built.

Quarterly results, balance sheet, cash flow, ratios, shareholding and the filings themselves are on the full page for Devyani International Limited.

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