Devyani International Ltd. (DIL) has surged 8% to ₹132.85 on Thursday following Jefferies' upgrade to 'buy' from 'hold' rating with a target price of ₹145 per share. According to NDTV Profit, the stock was trading as high as ₹133.60 during the session, demonstrating strong investor confidence in the company's prospects. The upgrade expresses renewed confidence in the company's prospects following recent management changes and early signs of operational improvement. The stock's strong performance reflects investor optimism about the company's strategic direction under new leadership, with the new target implying an upside potential of 25% over the previous close, significantly higher than the earlier 8.47% projection. Motilal Oswal has now joined the bullish sentiment, recommending a 'buy' rating with an even higher target price of ₹180, as reported by Moneycontrol, further validating the positive outlook on DIL's growth trajectory.
Devyani International reported consolidated revenue grew 11% year-over-year (YoY) in Q3FY26, with India revenue up 12% YoY, led by the Skygate acquisition and 13% YoY store expansion. According to Motilal Oswal's latest research report, the company demonstrated robust operational momentum across its portfolio. KFC revenue grew 6% YoY, aided by 14% store expansion, though this was offset by a 2.9% decline in same-store sales. Pizza Hut (PH) revenue declined 6% YoY with same-store sales declining 9.1% YoY, indicating challenges in the pizza segment. However, franchisee brands including Costa Coffee, NYF, Tealive, and SK saw revenue grow 9% YoY with 1% YoY store additions, while Vaango revenue rose 3% and Skygate contributed ₹115m revenue with 13 store additions. January 2026 started on a positive note for all brands, indicating strong same-store sales growth (SSSG) across the portfolio, excluding Pizza Hut.
Out of 26 analysts tracking the company, 18 maintain a 'buy' rating, seven recommend a 'hold,' and five suggest 'sell', according to Bloomberg data. The average 12-month consensus price target of ₹1,012.56 implies an upside of 721.5%. However, Jefferies' more conservative ₹145 target and Motilal Oswal's aggressive ₹180 target suggest mixed but generally positive analyst sentiment on the company's long-term prospects. Motilal Oswal values the entity at 25x EV/EBITDA (pre-IND AS) on Dec'27E, arriving at their ₹180 target price. This consensus target contrasts with previous brokerage targets, demonstrating the evolving analyst perspective on DIL's growth trajectory under new leadership.
DIL is the largest franchisee for Yum Brands' QSR chain that include KFC & Pizza Hut in India. In addition, DIL is the sole franchisee for Costa Coffee, Tea Live, New York Fries and Sanook Kitchen in India, and it also owns the South Indian vegetarian food chain, Vaango. The firm also weighed in on DIL's recently announced merger with Sapphire Foods, stating the merger may involve short-term uncertainty, but the brokerage views it as a long-term positive. The stock has rallied close to 10% following the Jefferies upgrade, demonstrating immediate market response to the positive analyst sentiment and operational improvements. With multiple analysts now recommending buy ratings and target prices ranging from ₹145 to ₹180, the stock appears well-positioned for continued growth under new leadership and strategic initiatives.
