Devyani International Ltd shares surged nearly 8% on February 5, 2026, primarily driven by a rating upgrade from global brokerage firm Jefferies, which upgraded its rating to 'Buy' from 'Hold'. The stock climbed to a day's high of ₹132.88, marking a significant single-day gain despite challenging market conditions. Jefferies maintained its price target of ₹145 per share, suggesting a potential upside of over 25% from its previous close. The brokerage noted that the recent 17% correction from its peak presented an attractive entry point for investors. Multiple other brokerages have issued positive ratings, with targets ranging from ₹160 to as high as ₹215 from firms like Macquarie, Citi, and Motilal Oswal.
Devyani International has announced the appointment of Manish Dawar as President and CEO effective April 1, 2026, transitioning from his current role as Chief Financial Officer. As reported by Mint, Dawar will lead the company's growth strategy and the ongoing merger with rival Sapphire Foods, which is expected to close in 15-18 months. The company has also appointed Anupam Kumar as new CFO and Neeraj Tiwari as Chief Technology Officer, highlighting its focus on digital transformation. Dawar announced that Devyani will add zero net new Pizza Hut outlets in 2026, shifting focus to fixing fundamentals rather than expansion. The leadership transition ensures continuity as Virag Joshi, the current CEO, is set to retire but will remain on the board as a Non-Executive Director.
Devyani International reported a net loss of ₹109.78 crore for the December quarter FY26, representing an increase from the ₹76.46 crore loss recorded in the same period last year. According to a regulatory filing from the company, consolidated revenue grew over 11% year-over-year, though this was slightly below analyst expectations. The company's consolidated EBITDA grew by 3% year-over-year, surpassing estimates, while gross margin expanded by 20 basis points and EBITDA margin stood at 16%, also ahead of forecasts. This indicates some success in managing costs despite a challenging demand environment. As per Mint, margins showed early signs of recovery in the quarter, helped by easing food cost inflation in key inputs such as poultry, cheese, and edible oils.
As reported by The Economic Times, Devyani International operated 2,279 stores as of December 31, 2025, comprising 1,877 domestic stores and 402 international outlets. The company's store portfolio includes 1,174 KFC stores, 648 Pizza Hut locations, 218 Own-Brands, and 214 Franchisee-Brands. The company added 95 net new stores during the quarter, with 75 additions in India (54 KFC, 18 Pizza Hut, 17 own brands) and 20 internationally, while also closing 13 underperforming franchise stores to optimize its portfolio. According to Mint, Devyani added around 250 gross stores over the past 12 months, even as it selectively closed underperforming Pizza Hut outlets, focusing on tier II and tier III cities where store economics are better.
According to Mint, Manish Dawar acknowledged that Devyani's earlier operating structure, split across Yum! Brands, Sapphire Foods, and Devyani, slowed decision-making and technology investments. The company has begun experimenting with promotions, value deals, and differentiated online and offline strategies, which helped deliver positive same-store sales growth in January. Key priorities include shutting loss-making stores, upgrading technology, and implementing sharper marketing with a stronger innovation pipeline. The ongoing merger with Sapphire Foods is aimed at fixing this, with Devyani set to take control of technology and supply-chain operations. January 2026 started on a positive note with positive same-store sales growth trends across all brands except Pizza Hut, providing early signs of consumption improvement for the upcoming quarter. The proposed merger with Sapphire Foods is viewed by analysts as a strategic long-term positive, though it may introduce some short-term uncertainty.
As reported by The Economic Times, shares of Devyani International Ltd settled at ₹123.30 apiece on BSE, up 6.06% from the previous close on Wednesday. The company also announced its board approved the acquisition of 11.4% additional equity stake in Sky Gate Hospitality from promoters for a consideration of ₹57.5 crore through a mix of cash and issuance of Non-Convertible Redeemable Preference Shares. Last month, Sapphire Foods India and DIL announced a merger through a share swap, creating one of the largest chains in India with over 3,000 stores operated by the combined entity. The deal aims to deliver ₹210-225 crore in annual synergies from the second year, while giving Devyani scale and tighter control over technology and supply chains. The consensus among analysts is largely positive, with a majority of analysts covering the stock having a 'Buy' or 'Strong Buy' rating, pointing to leadership stability and potential for a business turnaround.
