Devyani International Q1FY26 (Consolidated) results

DIL’s Q1FY26 consolidated numbers are not strictly comparable with previous quarters due to integration of Sky Gate Hospitality.

• Devyani International’s (DIL’s) revenue grew by 11.1% y-o-y to Rs. 1,357 crore driven by healthy growth from KFC, Costa and the food court business in India and supported by 11.2% y-o-y growth in the international business. KFC and Pizza Hut revenue grew by 10.5% and 3% y-o-y, respectively. Revenue came in largely in line with our expectation of Rs. 1,345 crore. DIL added 106 stores (net) in Q1 taking total count to 2,145 stores (including 105 stores of Sky Gate Hospitality) across geographies.
• Gross margin declined by 97 bps y-o-y to 68.2%, while EBITDA margin decreased by 318 bps y-o-y to 15.1%, mainly due to deleverage from lower ADS y-o-y and investments in marketing and promotions. EBITDA margin came in much lower than our expectation of 17.2%.
• EBITDA declined by 8.3% y-o-y to Rs. 205 crore. Adjusted PAT declined by 88.6% y-o-y to Rs. 2.6 crore due to higher depreciation charges, missing our expectation of Rs. 12 crore.
• View: Overall DIL posted weak performance in Q1 on profitability front. Currently we have a Hold rating on the stock.

Results (Consolidated)                                                                         Rs. crore

Actual vs estimates                                                   Rs. crore