Devyani International Limited (DIL) announced its financial results for the quarter ended June 30, 2026 (Q1 FY2027) through a regulatory filing under Regulation 30 of SEBI Listing Regulations.

Financial Performance

  • Revenue: Consolidated revenues reached ₹15,805 million, representing 16.5% year-over-year growth.
  • EBITDA: Operating EBITDA increased 38% year-over-year to ₹1,511 million with a margin of 9.6%. The company reported its highest ever quarterly EBITDA of ₹2.55 billion (₹255 crores) at a 16.1% margin.
  • Profitability: Profit Before Tax (PBT) reached ₹229 million, showing an increase of more than 6 times year-over-year. Profit After Tax was ₹171 million, which is the highest in 8 quarters.
  • Margin Expansion: Brand Contribution margin improved by +1.1% year-over-year.

Same-Store Sales Growth (SSSG) Performance

All brands delivered positive same-store sales growth:

  • KFC: +3.3% SSSG
  • Costa Coffee: +10.2% SSSG
  • Biryani by Kilo: +7.2% SSSG
  • Vaango: +7.1% SSSG
  • Pizza Hut delivered sequentially better SSSG numbers

Operational Metrics

  • Store network reached 2,255 stores across more than 350 cities in India, Thailand, Nigeria, and Nepal
  • The company stated it is on-track to deliver store expansion targets for FY2027

Management Commentary

Mr. Ravi Jaipuria, Non-Executive Chairman, commented that the company began the new financial year on a strong note, continuing momentum built in the second half of FY26. He noted that KFC continues to post double-digit sales growth and highlighted the broad-based growth across the portfolio.

Cost Environment and Challenges

The company mentioned operating in a volatile environment with seasonal complexities, noting cost inflation on LPG and wage hikes. While demand has remained stable, the forecast of a below-normal season combined with El Niño risk was noted as a reminder that consumption recovery in India rarely moves in a straight line.

Merger Update

The merger process with Sapphire Foods continues to progress along expected timelines. The company received approvals from both NSE and BSE in June 2026, bringing them closer to the next phase of regulatory filings. The timelines are broadly on track with the stated target of completion by the end of FY2027.

Management and Organizational Development

Under Manish Dawar's leadership, the company has continued to strengthen its management team, which is now fully in place and settling into their respective roles. The company is building what the team has called "DIL 2.0" with early cultural and operational shifts across the organization.

Business Overview

Devyani International Limited is one of India's largest quick service restaurant (QSR) operators with over 2,200 stores. The company is the largest franchisee of Yum! Brands in India and Nepal, and sole franchisee in India for Costa Coffee, New York Fries, and Sanook Kitchen. The company also operates indigenous brands including Vaango, The Food Street, and through acquisition, Biryani By Kilo and Goila Butter Chicken.