Devyani International Ltd(DEVYANI)

NSE: DEVYANIBSE: 543330

₹ 118.85+1.24%refreshed 26 Oct, 03:30 pm ISTMarket cap: ₹ 14,653 crWebsite: www.dil-rjcorp.comUpdated: 27 Oct 2026

About

Devyani International Limited (DIL) is the largest franchisee of Yum! Brands in India, operating KFC and Pizza Hut alongside Costa Coffee and a portfolio of own brands including Biryani By Kilo and Vaango. The company is pursuing a merger with Sapphire Foods, which would create a combined entity of more than 3,000 stores and annualised revenues approaching USD 1 billion.^[1][2][3]

Brand portfolio

Franchisee brands: KFC and Pizza Hut (Yum! Brands), and Costa Coffee - DIL is the largest Yum! franchisee in India as of FY26.^[1]
Own brands: Vaango (South Indian vegetarian), Food Street (food court format), Biryani By Kilo, and Goila Butter Chicken - the latter two added via the Sky Gate acquisition.^[1]
Tealive beverage brand was test-launched in India and Thailand with 6 stores in Q2 FY26 but was subsequently discontinued; wind-down completed in Q1 FY27.^[4][5]

Store network and reach

Total global store count was 2,256 as of March 31, 2026, up from 2,039 a year earlier, spanning 33 states and union territories in India and 3 international countries.^[1]
Total store count stood at 2,255 as of Q1 FY27 (June 30, 2026).^[6]
KFC India had 788 stores as of December 31, 2025 (Q3 FY26), following 54 net new store additions in that quarter.^[3]
Pizza Hut India store count was rationalized to 626 stores in Q1 FY27, down from 639 at end of FY26, as loss-making stores were closed.^[6][4]
International operations (Thailand, Nepal, Nigeria) contributed 23 BBK Express stores as of Q1 FY27.^[6]

Key operating metrics

KFC India SSSG: +3.3% in Q1 FY27, improving from +4.9% in Q4 FY26, -2.9% in Q3 FY26, and -4.2% in Q2 FY26; full-year FY26 SSSG was -0.8%.^[6][4][3]
KFC India ADS was INR 90k in Q3 FY26 and Q4 FY26; KFC India Brand Contribution Margin was 16.9% in Q1 FY27 vs 17.0% in Q4 FY26 and 16.8% in Q3 FY26.^[6][4][3]
Pizza Hut India SSSG: -2.2% in Q1 FY27 (improving sequentially from -3.7% in Q4 FY26 and -9.1% in Q3 FY26); full-year FY26 SSSG was -5.3%. ADS was ~INR 32,400/day in Q1 FY27.^[6][4][1]
Own brands (BBK + Vaango) SSSG: Biryani By Kilo +7.2% and Vaango +7.1% in Q1 FY27; BBK had +3.2% SSSG in Q4 FY26.^[6][4]
Consolidated gross margin: 69.1% in Q1 FY27 (+0.9% vs Q1 FY26), vs 68.8% in Q4 FY26 and 68.9% in Q3 FY26.^[6][4][3]
Consolidated brand contribution margin: 14.2% in Q1 FY27 (+1.1% vs Q1 FY26), vs 14.1% in Q4 FY26 and 13.9% in Q3 FY26.^[6][4][3]
Consolidated Operating EBITDA (pre-Ind AS): INR 151 crore at 9.6% margin in Q1 FY27 (+38% YoY); Reported EBITDA was INR 255 crore at 16.1% margin, up 100 bps YoY - the highest ever.^[6]

International business

International revenues were INR 523 crore in Q1 FY27 (+20.7% YoY), with Brand Contribution margin of 18.2% (+1.5% YoY). The international segment crossed INR 500 crore quarterly revenue for the first time in Q4 FY26.^[6][4]
Nepal grew revenues +46% YoY and Thailand +19% YoY in Q4 FY26; international added 20 net new stores in Q3 FY26 (17 in Thailand, 3 in Nepal).^[4][3]

Delivery mix and channel strategy

KFC India delivery (off-premise) mix reached ~45 - 46% of sales in Q1 FY27, up from 42% in Q2 FY25 and less than 10% pre-COVID; management is actively rebalancing toward dine-in.^[6][5]
KFC India dine-in (offline) salience improved to 57% in Q1 FY27, more than 3 percentage points higher than Q1 FY26; target is 59 - 60%.^[6]
Digital kiosk penetration exceeded 80% across KFC India's store network as part of the DIL 2.0 transformation agenda as of Q4 FY26.^[4]

Operations and infrastructure

DIL has no manufacturing plants; a commissary in Gurugram prepares and distributes food items and consumables for Costa Coffee and other brands.^[1]
DIL operates a dedicated ISO 22000 certified R&D facility for menu innovation and new product development.^[1]
DIL employed 15,955 permanent employees on a standalone basis as of March 31, 2026; 30.5% were female and 255 were specially abled.^[1]

Expansion and new store guidance

FY27 net new store plan for DIL standalone is 200 - 225 stores, with KFC India contributing 100 - 110 of those; balance from Costa Coffee, Biryani By Kilo, and international businesses.^[6][4]
Pizza Hut India targets zero net new units in calendar year 2026, with new openings only compensating for closures of loss-making stores.^[3]
Biryani By Kilo is being tested in food courts and airports; a vegetarian/sattvic portfolio is being tested during the Shravan-Navratri season; long-term target is to become a INR 1,000 crore brand.^[6]
KFC global product pipeline - Kwench beverage sub-brand, sauces, and boneless snacking - to be rolled out in India sequentially; Kwench capex and product optimization largely complete as of Q1 FY27.^[6]

Merger with Sapphire Foods

Board approved merger of Sapphire Foods into DIL on January 1, 2026; combined entity will have 3,002 stores and annualised revenues of ~INR 8,000 crore (~USD 1 billion).^[3]
Targeted merger synergies of INR 210 - 225 crore; ~60% to be realized in year 1 post-merger approval, 100% by end of year 2.^[3]
Merger on track for completion by end of FY27; NSE/BSE approvals received June 2026; CCI application to follow.^[6]
A unified technology platform (DIL Commerce), built with Cognizant, is targeted to be ready before merger approvals and integration begins.^[6][4]

Market Cap

₹14,653 Cr

High / Low

₹169 / 92

Stock P/E

-529.5

Price / Book

9.3

Book Value

₹13

EPS

₹-0.3

No. of Shares

123.29 Cr

ROCE

4.8%

ROE

-2.9%

OPM

4.3%

Debt / Equity

0.88

Sales

₹5,611 Cr

Net Profit

₹-43 Cr

Promoter holding

61.4%

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