Devyani International delivered exceptional financial results for Q1FY27, with consolidated net profit attributable to owners rising nearly four-fold to ₹14.6 crore compared to ₹3.7 crore in the corresponding quarter last year. According to latest reports, consolidated revenue from operations grew 16.5% YoY to ₹1,580.5 crore from ₹1,357 crore in Q1FY26, demonstrating robust operational performance across its quick-service restaurant portfolio. The strong topline growth shows the company's resilience despite challenging market conditions. Profit Before Tax (PBT) increased sharply to ₹22.9 crore, compared with ₹2.9 crore in the year-ago quarter, while Profit After Tax (PAT) surged to ₹17.1 crore, compared with ₹2.2 crore reported in Q1 FY6, representing a nearly seven-fold increase. Earnings per share (EPS) also improved to ₹0.12, compared with ₹0.03 in the corresponding period last year. Operating EBITDA increased 38% year-on-year to ₹151.1 crore, with the operating EBITDA margin improving to 9.6% from 8.1% a year earlier. Reported EBITDA reached a record ₹254.8 crore, taking the EBITDA margin to 16.1% compared with 15.1% in the corresponding quarter last year, indicating enhanced cost management and operational leverage despite inflation.
The company's operational efficiency showed significant improvement with EBITDA climbing 23% YoY to ₹254 crore in Q1FY27 from ₹207 crore in the previous year. As reported by latest sources, EBITDA margin expanded to 16.0% from 15.3%, indicating enhanced cost management and operational leverage despite persistent raw material inflation. The restaurant operator's ability to grow EBITDA margins to 16.0% despite inflation suggests effective cost-control measures and better product-mix management. Net profit margin improved to 0.93% from 0.27% YoY, marking a turnaround in core profitability. Other income also contributed positively, increasing to ₹19.2 crore in Q1FY27 from ₹13.5 crore in the year-ago period. Total expenses were up 15.31% to ₹1,576.85 crore in the June quarter, with raw material and ingredient procurement consumption accounting for ₹488.24 crore. The stronger earnings indicate improved operating leverage despite continued investments in business expansion and restaurant operations.
KFC continued to anchor the company's performance, recording 3.3% same-store sales growth during the quarter and revenue from KFC India increased 11.7% year-on-year to ₹684.2 crore. The chain added 11 net new stores in India and two in Thailand, taking its India store count to 794 stores. Pizza Hut delivered sequentially better same-store sales growth, although the company did not disclose the exact percentage, and ended the quarter with 626 stores after a net reduction of 13 outlets in India. Costa Coffee posted 10.2% same-store sales growth, while Biryani By Kilo and Vaango recorded growth of 7.2% and 7.1% respectively. The company said most brands in its portfolio delivered positive same-store sales growth during the quarter, with revenue improving across dine-in and takeaway channels as part of its two-pronged strategy. The company ended the quarter with a network of 2,255 stores and said it remains on track to meet its FY27 store expansion targets.
The company made significant progress on its corporate restructuring initiatives during the quarter. As reported by The Economic Times, Sapphire Foods India and Devyani International announced a merger through a share swap, creating one of the largest quick-service restaurant chains in India with over 3,000 stores being operated by the combined entity. Under the approved swap terms, Devyani will issue 177 fresh equity shares of face value ₹1 each for every 100 shares held in Sapphire Foods. Additionally, the amalgamation of Sky Gate Hospitality and its wholly owned subsidiaries with Devyani International advanced, with the National Company Law Tribunal issuing its first motion order regarding the internal integration of the hospitality unit. DIL had last year acquired Sky Gate Hospitality, which owns brands such as Biryani By Kilo and Goila Butter Chicken. In June 2026, Devyani International and Sapphire Foods received regulatory 'no objection' from NSE and BSE for their proposed merger, moving the transaction to NCLT and CCI for final approvals. The company expects the transaction to be completed by the end of FY27. Chairman Ravi Jaipuria noted that the new leadership team is now in place as the company advances its "DIL 2.0" transformation strategy.
Shares of Devyani International Limited gained nearly 8% after the company announced its Q1 FY7 results, with the stock trading at ₹121.2, up by 6.5% from the previous close of ₹113.72. The stock opened at ₹115 and reached an intraday high of ₹124, with a day's low of ₹114.25. The company currently has a market capitalisation of ₹15,260 crore. Macquarie maintained its Outperform rating with a target price of ₹130, noting that the quarter was largely in line with expectations and highlighting healthy same-store sales growth across KFC, Costa Coffee and other brands. The brokerage believes a broader pickup in consumer demand will remain the key catalyst for the stock going forward. India's quick service restaurant industry continues to benefit from rising urban consumption, premium dining trends and the expansion of organised food chains. The organised QSR industry remains one of the fastest-growing segments within India's consumer discretionary space, supported by rising disposable incomes, increasing preference for branded food chains and continued store expansion. The merger with Sapphire Foods could reshape India's organised QSR landscape by combining two of the country's largest franchise operators, positioning Devyani International for future growth through increased scale, operational efficiency, and enhanced bargaining power in procurement, supply chain, and expansion.
