India · Delayed Price · Currency is INR Devyani International Earnings Call Transcripts
Fiscal Year 2026
-
Q4 and FY 2026 saw robust revenue and margin growth, led by KFC's strong recovery and international expansion. The Sapphire Foods merger and leadership overhaul are set to drive further digital and operational transformation, with 200-225 new stores planned for FY 2027.
-
Q3 FY26 saw double-digit revenue growth, accelerated KFC expansion, and break-even for Biryani By Kilo and Sky Gate. The proposed Sapphire Foods merger aims to create a $1B F&B platform, with leadership transitions and a focus on operational efficiency and margin improvement.
-
The merger will create a leading F&B platform in India, combining over 3,000 stores and major brands, with significant cost synergies and a unified tech strategy. Share swap and promoter transactions are structured to meet regulatory and Yum requirements, with full synergy realization expected within two years.
-
Q2 FY26 revenue grew 12.6% YoY to INR 1,377 crores, with gross margin at 67.8% and continued store expansion. Despite muted demand and negative SSSG, operational improvements and value-focused innovation supported margins. Sky Gate integration and international growth remain on track.
-
Q1 FY2026 revenue rose 11.1% year-on-year to INR 1,357 crore, led by KFC and international growth, but margins declined due to higher marketing and delivery costs. Sky Gate Hospitality was acquired, and new brands are being launched, with a focus on profitability and store optimization.
Fiscal Year 2025
-
FY2025 delivered 39.2% revenue growth, driven by acquisitions and store expansion, despite margin pressures from input inflation and weak consumption. KFC and Costa Coffee expanded, while Pizza Hut's growth slowed; new brands and value offerings are expected to drive future growth.
-
Q3 FY25 saw strong store expansion, with total stores surpassing 2,000 and consolidated revenue up 54% year-over-year. Margins improved sequentially despite food inflation, and cost optimization is expected to further boost profitability. Expansion will be more selective, especially for Pizza Hut, with a focus on core brand performance.
-
Revenue grew 49% year-over-year in Q2 FY25, driven by store expansion and new brand additions, but margins and profitability were impacted by seasonal softness, macroeconomic headwinds, and currency devaluation. Management remains focused on growth, innovation, and capital-efficient expansion.
-
Q1 FY25 saw strong revenue and margin growth, driven by store expansion, Thailand acquisition, and improved ADS, despite macroeconomic and currency headwinds. Cautious optimism prevails for festive season recovery, with continued focus on cost control and brand investments.