Ladies and gentlemen, good day and welcome to the Devyani International's Earnings Conference Call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity to ask questions after the presentation concludes. Should you need assistance during the conference call, please signal an operator by pressing star and then 0 on your touch-tone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anup Pujari from CDR India. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us on Devyani International's Q2 FY26 earnings conference call. We have with us Mr. Ravi Jaipuria, Non-Executive Chairman of the company. Mr. Raj Gandhi, Non-Executive Director. Mr. Virag Joshi, CEO and Whole-time Director. And Mr. Manish Dawar, CFO and Whole-time Director of the company. We'll initiate the call with opening remarks from the chairman, followed by key financial highlights from the CFO. Thereafter, we will have the forum open for a question-and-answer session. Before we begin, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the results presentation shared with you earlier. I would now request Mr. Ravi Jaipuria to make his opening remarks.
Good afternoon, everyone, and thank you for joining us today. I'm pleased to welcome you all to Devyani International's post-result earnings conference call to discuss our performance for the second quarter of the fiscal year 2025-26. The second quarter of the current fiscal year saw perhaps the most important policy development for the consumer and retail industry. The GST Council meeting formalized the transition towards GST 2.0, a historic move to simplify and harmonize the GST framework to a two-tier structure. While it's still early to assess the results of this transition, the initial signs are encouraging, and all of us have seen a significant upside in certain consumption categories like automobiles and durables. The impact of the change has been very minimal on the QSR category and our business. We have already passed on the benefits of reduced input costs to consumers.
Overall, GST 2.0 is a welcome move to broaden the consumption story in India. We continue to expand our store network with 30 new additional KFCs and another three additional Pizza Huts. We also test-launched Tealive by way of opening six new outlets during the quarter. The initial customer feedback is positive, and we plan to expand the brand after the test-launch phase. Our recent acquisition, Biryani By Kilo and Goila Butter Chicken, continues to do well, and we have seen a strong momentum in the business post-Dussehra. The integration of Sky Gate with DIL remains on track, as shared earlier. Our goal is to achieve brand contribution break-even by March 2026, and we are pleased to report steady progress towards this milestone.
We remain confident of meeting this target. Being a festive quarter, our promotions targeted both the topical event, Pujo and Onam specials, as well as the core offerings.
KFC saw a pan-India launch of the Chana Chatpata Burger, attractively priced at INR 69, and comprising on protein-rich vegetarian patty. We have also started rolling out a new grilled chicken offering and new limited-time offering LTOs in the beverage and desserts category. We launched Ultimate Cheese Crust and Flip the Cheese in Pizza Hut across all channels. Customer response has been enthusiastic and has encouraged us to expand the offering to combos and meal offers as well. We saw both Shravana and Navratri fall in the same quarter, impacting out-of-home consumption. Further, unseasonal rains, especially in the eastern part of the country during the crucial second half of September, impacted our sales. Despite external factors, our consolidated revenues grew to INR 1,377 crores, a 13% year-on-year growth.
While the industry has navigated a challenging environment over the past few years, we have continued to strengthen our fundamentals and adapt to evolving consumer preferences. The resilience of our brands, disciplined execution, and ongoing operational improvements have enabled us to grow despite these headwinds. India's consumption story continues to present significant opportunities for organized players like us. With a strong foundation and a diversified portfolio, we are well-positioned to capture these opportunities and deliver sustainable, profitable growth in the years ahead. With this, I would like to conclude my address and now hand over to Manish for the financial highlights. Thank you very much.
Thank you, Mr. Jaipuria. Good evening, everyone. A very warm welcome, and thank you for your valuable time for attending DIL's Q2 FY26 earnings conference call. Our 17th such call since our listing in August 2021. We ended September 2025 with a total store count of 2,184 stores, comprising of 1,100 KFC stores and 630 Pizza Hut stores. As mentioned by the chairman earlier, we also opened six outlets of Tealive during the quarter by way of test launch. The consolidated operating revenue for Q2 FY26, including Sky Gate, was INR 1,377 crores, up 12.6% YoY. Consolidated Q2 FY26 gross profit came in at INR 933 crores, up 10.1% YoY, with margins at 67.8%. Brand contribution margin was at 11.7% versus 13.6% last year. Excluding Sky Gate, brand contribution would have been higher at 12.4%.
The organic dip is on account of decline in margins in the Indian operations, slightly offset by steady performance in international business. Consolidated operating EBITDA on a pre-IND AS basis was INR 93 crores, with margins at 6.8% versus 8.1% in the previous quarter. This quarter saw the full impact of consolidation of Sky Gate, which adversely impacted the margins. As guided earlier, we are on track to achieve the break-even at brand contribution level for Sky Gate by the end of the current financial year. Excluding the Sky Gate impact, operating EBITDA would have been higher at 7.6%. Startup costs related to newer franchise brands like Tealive and New York Fries, and Sanook Kitchen have also impacted the margins to some extent. Reported EBITDA was INR 194 crores, with margins standing at 14.1%. The Indian operations, including Sky Gate, grew 12.1% YoY to reach INR 937 crores in revenues.
Gross margin came in at 69.7%, a decline of 1.9% versus the previous year, primarily on account of consolidation of Sky Gate and due to investments to support transactions growth in the online business. Ex-Sky Gate impact gross margins of Indian operations slightly improved on a sequential basis. Lower gross margin, increased aggregator and delivery expenses due to higher saliency of off-premise sale in KFC led to overall lower brand contribution in India. Moving the discussion to our brands, KFC in India added 13 net new stores in Q2 FY26. With this, the total store count for KFC in India stands at 734 stores as of 30 September, and we are on track to open approximately 100-110 new stores of KFC this year. Average daily sales for Q2 FY26 at 89,000 reflects seasonal variance. Revenues came in at INR 572 crores, up 5.3% YoY. Gross margin was at 68.1%.
The brand contribution margin came in at 14.1% for Q2 FY26 due to lower gross profit margin, higher delivery and aggregator cost, and delivery on account of lower ADS. We opened three net new stores in Pizza Hut in Q2 FY26, ending with 621 stores in India. Pizza Hut India revenue for the quarter was INR 186 crores. ADS at INR 33,000 remained flat on a sequential basis, with SSSG at minus 4%. Gross margin was also stable quarter- on- quarter at 74.8%. Prudent cost control helped us in achieving near break-even at the brand contribution level. Franchise brands, which include Costa Coffee and the newer brands in India, posted revenues of INR 51 crores with gross margins at 73.6% and brand contribution of INR 5.4 crores. Brand contribution for the division includes the startup cost associated with the new brands.
Own brands, which include Vaango!, Biryani by Kilo, and Goila Butter Chicken, recorded INR 86 crores in revenues, including Sky Gate portfolio, with gross margins at 62.6%. Brand contribution margin came in at 0.6%, again primarily on account of consolidation of Sky Gate. The dilution in gross margin and brand contribution, as I said, is primarily owing to Sky Gate portfolio, and as mentioned earlier, we are on track to achieve break-even numbers by the end of the current financial year. Our international business continues to demonstrate resilience and strong performance.
Revenues reached at INR 450 crores in Q2 FY26, up 14% year-on-year, with gross margins at 64%, brand contribution of INR 75 crores, representing 16.7% margins. It's higher on a YoY basis, led by strong performance in Thailand. Mr. Jaipuria spoke about the introduction of GST 2.0. While it is still early days, we are hopeful that the savings generated through GST reduction should boost consumption.
Our initial estimates suggest that we may get some modest benefits due to lower GST on slightly lower input costs. We have already passed on this benefit to the consumers through reduction in the prices of key SKUs of our brands. I would also like to reiterate that output GST for us continues to remain at the same level, and we are not allowed to take input tax credit on our products. We remain focused and disciplined in our pursuit of sustainable and profitable growth, leveraging our strong brands, expanding the portfolio, and operational excellence to deliver consistent performance going forward. On that note, I would like to request the moderator to open the forum for any questions or suggestions that you may have. Thank you very much.
Thank you. We will now begin with the question and answer session. Anyone who wishes to ask a question may press star and then one on their touch-tone phone. If you wish to remove yourself from the question queue, you may press star and then two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Devanshu Bansal from Emkay Global. Please go ahead.
Yes, sir. Hi. Thanks for the opportunity. So you seemed to have optimized the promotions for KFC as the gross margin dip has been relatively much lower in Q2 versus what we saw in Q1. So wanted to check, excluding for this shift of Navratri in Q2, were the underlying SSG trends for KFC comparable to what we saw in Q1? So that was the first question.
Devanshu, you want to complete your questions, or should I answer?
Yeah, please answer, sir. So basic question is that promotions seem to have reduced because gross margin dip is relatively lower. So I wanted to check whether the underlying SSG trends in Q2 existed for the Navratri shift. Were they broadly similar to what we saw in Q1? Because despite reduction in promotions, so that was the first question.
Sure. So on a quarter-on-quarter basis, we've seen slight improvement in the gross margin of KFC versus, let's say, when you compare it to year-on-year basis. And the reason we supported the brand from a brand contribution point of view is because, as you know, in the current quarter, we had this peculiar situation whereby the Shravana and the Navratri came in one quarter, which was unlike the previous year. And therefore, we saw a kind of prolonged dip in the SSSG. But to your other question in terms of net of the impact on the brand because of these two events, it was pretty much positive. However, the other thing that you would like to note is that Kolkata or East is a big region for us. And during Pujo, there were very strong rains in East, which impacted the overall offtake.
So that was the other reason which kind of impacted the overall KFC numbers.
Fair enough, fair enough, Manish. Secondly, just a bookkeeping thing. So basic calculation suggests that Biryani by Kilo is at about INR 52 crore quarterly run rate and about INR 3-INR 3.5 crore of brand-level loss. So I just think that the other businesses have seen a very strong growth, right? So if my calculation is right, so that INR 52 crore has moved to INR 67. So wanted to understand, as in, which all portfolios are seeing a very strong traction here?
See, overall, the brands are doing fine, as you said, because we've given the numbers in some places without the Sky Gate portfolio also. We've consolidated Sky Gate fully during the quarter. And Sky Gate, as I mentioned earlier, was sitting at a double-digit brand contribution losses. We've started working on the same. We are hopeful that by the end of this financial year, at a brand contribution level, Sky Gate, we will achieve the break-even numbers. And after that, we are going to be working on improving the margins to kind of come back to our average portfolio margins, which might take a little time. But we are very confident that we'll be able to achieve the break-even brand contribution numbers by March of 2026. At the same time, we've also tested Biryani by Kilo brand at our Mumbai Airport and Pune Airport locations.
The brand has seen good traction, and therefore, we are actually planning to expand the brand into our food court locations to test a model in the food court so that we are able to kind of work out a long-term strategy post our tests in various channels.
Yeah. So adjusted for BBK, if my calculation first, we wanted to check if the calculation was right, INR 52 crore run rate and INR 3-INR 4 crore of brand-level loss.
Yeah, your calculation is right, broadly.
So if we adjust this, then what is leading that 30%-35% kind of a growth? So I wanted to understand that.
No, what is leading means what?
If we exclude Biryani By Kilo in the.
No, no. Are you talking about only the India portfolio?
Yes, yes. Only the own brand portfolio.
No, only the own brand portfolio. Your inference is not correct because own brand has Vaango! and Biryani by Kilo, and Vaango! is pretty steady. Some bit of, I mean, there's no exceptional movement in Vaango!, but the dip is on account of Biryani by Kilo. So maybe we can connect on an offline basis to go through the numbers that you are working on, and then we can address your query.
Sure, Manish. No issues. Yeah, and thanks for taking the question.
Thank you. Our next question comes from the line of Gaurav Jogani from JM Financial. Please go ahead.
Hi, sir. Thank you for taking that question. So my question is with regards to the Yum! Brands global commentary on Pizza Hut franchise. So would you have any comments on that? They are planning to rationalize, and if they do, what kind of an impact can it have on us?
Gaurav, there are two ways to look at this. One is, let me first talk about where we stand versus the Yum announcement. So as far as we are concerned, all of our agreements are well protected, and in case of any such event, there's no difference that is going to impact us as far as the India business or any of the other businesses where we have Pizza Hut, so we are fully protected on the development agreements at the store-level agreements that we've talked about in the past, so therefore, that is not an issue. We feel, again, let's say, for example, if you were to look at the media reports and all, this actually might bring focus on the Pizza Hut brand, and therefore, it could well be positive for us.
So that's how we are reading, and we are optimistic about this whole change that Yum! has announced. But let's see, it's too early to say because right now, they've announced only their intention. So we've also read, and we also know to whatever extent you guys know, but at the least, it will not impact us at all.
Okay. Sure. Thanks. I said just one clarification regarding KFC. Is the inference right that the promotional intensity has been lower on a Q2 basis and hence the gross margin expansion what we have seen?
See, the promotional intensity actually was higher compared to what we've seen because seasonally, one, it was a low quarter. Second, we had Shravana and Navratri falling in the same quarter, and hence, we actually supported the brand to that extra extent. So therefore, we've not reduced the promotional intensity. That is not the case. If at all, I mean, we are trying to kind of maintain the transactions because typically, in a quarter like this, it has a double whammy impact, and therefore, we never reduce the promotional intensity.
Sure. So what really led this Q2 expansion in gross margin then?
See, because there have been some changes in the input cost and all, but that is small. At the same time, we also looked at some efficiency in operations, some tweak in the consumptions, and so on and so forth, so.
Sure. So the gross margins that we have done, can we believe that this is sustainable? Because even in the quarter where you continue to maintain promotions, etc., and still you are able to clock these gross margins. So should one assume that this should be sustainable and maybe improve going ahead?
So Gaurav, on a material cost basis and the efficiency basis, obviously, it is sustainable. But again, depending on the promotional intensity, depending on how much we are pushing on online versus offline, to that extent, the gross margins can vary. But otherwise, purely on the other perspective, no issues.
Sure. And just lastly, on KFC only, I mean, this quarter, we have seen a very strong expansion on the store front. So any guidance that you can give on store expansion, both on the KFC and the Pizza Hut? And that would be the last question from me.
Gaurav, we've talked about in the past that KFC, we are planning to open about 100-110 outlets. And we remain strong on our guidance. We will open those number of outlets. And you will see, I mean, we've demonstrated in the current quarter, we've opened about 30 KFC outlets. So we will be able to meet those numbers. As far as Pizza Hut is concerned, as I've mentioned on the call earlier, we optimized our commentary on the net new units. As I said, we are kind of in negotiations with Yum on various other things. So that is still on. And therefore, on Pizza Hut also, we are talking about muted net new units.
Okay. Okay, sir. Thank you. That's all from me.
Okay.
Thank you. Our next question comes from the line of Jignanshu Gor from Bernstein. Please go ahead.
Hi, Manish. Good afternoon. Thank you for the opportunity. I just had one question on KFC. First, a lot of the new promos that we are seeing or the menu items that we are seeing, they seem to be special initiatives for driving walk-ins. Because I'm, for example, Chana burger, only a combination of two is available online, not individual, right? The masala rice, I can't find even in Hyderabad, etc. versus our dine-in has reduced considerably, right? So how are you seeing your efforts in driving demand? What is your primary focus? Is it either demand? Is it dine-in demand? Or how are you optimizing for that?
Jignanshu. See , if you look at, let's say, the overall consumer trends, they are kind of moving in favor of home delivery, right? And there's a very strong traction behind delivery. And hence, we are putting in some extra efforts to make sure that our dine-in also continues to be salient. And as you know, I mean, dine-in portfolio is a more profitable portfolio for us. And we are taking efforts so that we are able to attract consumers into the stores and continue to make dine-in a robust business.
But have you seen a trend there that your existing customers are more preferring delivery and only new customers are predominantly dine-in? And how does that? So are you swimming against the tide in a way by trying to do that? So just want to get a sense of whether you see this shift towards delivery stabilizing at some point.
See, you are able to see the shift across all the companies, right? Whether you look at e-commerce, quick commerce, QSR, I mean, that shift is there everywhere. At the same time, for example, in our portfolio, we need to have the stores to be able to service the consumers. It's not a situation like Amazon or a Flipkart or quick commerce that you can get into some whatever dark warehouses and start to service the consumer from there. And hence, we need to make the efforts to be able to kind of have the salience on the dine-in portfolio also. Because, for example, if you look at the large malls, if you look at the prime retail locations, the retail and consumers walking in are still a very, very, very good phenomenon.
So therefore, I mean, just because the consumption trend is moving that side does not mean that we should simply just give it away.
Fair. Fair. Okay. I think that was the only question from me. Thank you and all the best.
Sure.
Thank you. Our next question comes from the line of Avi Mehta from Macquarie Capital. Please go ahead.
Yeah. Hi, team. Thanks a lot for this opportunity. I just wanted to check on the thoughts on stabilizing of discounting in the second half, which we were earlier thinking about. Any update on that? And in that sense.
Avi, sorry for intervening. I lost your voice for a couple of seconds. Please repeat the question.
Sure, sure. I wanted to just get your updated thoughts on the expectation that we would look to stabilize discounting in the second half. Any change in that thought? And if yes, and if no, how do you see margin performance across as we move into the second half across the formats? That's my first question.
See, as I said, I mean, during the previous quarter, we had Shravana and Navratri falling in together, which kind of impacts the non-vegetarian sales. And we made extra efforts to kind of support the promotions and all. Obviously, going forward, we will try and optimize that a little bit because obviously, one, quarter three is a big quarter, and then December is an exceptional period. So therefore, let's see how it kind of shapes up moving towards December. And then we'll take that call. But the idea is to kind of balance out the online promotions versus what we are offering in the offline channel to have a good balance in terms of the dine-in contribution as well as the margins.
Got it, sir. And sir, I joined. I mean, we have missed this. Just wanted to check if there's any quantum of the impact from the change in festivities and timing and your sense on how the demand environment is behaving so as to get a perspective of how do we look at future quarters?
Avi, demand environment in our view continues to be weak, and therefore, we've seen that whenever, let's say, we do some promotions or promotion intensity, it kind of picks up very well, and the moment you kind of withdraw that, it falls back, and therefore, which kind of signifies that the overall consumption side continues to be weak. The consumers are becoming more and more value-conscious because we've seen the lower value items pick up very fast, so therefore, we are working on that innovation also. You would have seen a promotion on the whole epic promotion where we are kind of promoting the value layer. Similarly, the Chana burger launch also was catering to the same sentiment, so we are making those efforts, trying to balance out the margins and everything, and that's how it is kind of panning out.
So maybe if I just clarify, just the question was that we saw -4% in KFC, but obviously, some amount of impact is there from rains, from the timing of the festive period. So your best guess is to adjust for that would be what kind of same-store sales growth for KFC in the last quarter?
See, if I were to adjust for, let's say, because there was Shravana, there was Navratri, then there was Pujo, which got washed out because of the rains. Now, all of these things are very, very difficult to pinpoint in terms of what is the exact impact. But let's say if I were to take out that period, then it's kind of a much better number versus what we reported.
So where I'm going with this is the underlying trends are more flattish or still moderating? That's what I was trying to kind of appreciate more.
Still moderately negative.
Okay, sir. Thank you. That's all from my side. Thank you, sir.
Okay. Okay.
Thank you. Our next question comes from the line of Dhananjai Bagrodia from Alchemy. Please go ahead.
Hi. Hi, sir. Thank you for giving me the opportunity. Just wanted to ask you, sir, how would we have looked at our market share data across the segment? I know it's a little hard to quantify, but how would you read it?
See, there's no formal mechanism, Dhananjai, in this sector to report to kind of measure the market data. So we don't have Nielsens of the world covering QSR category. So we can kind of and then there are these multiple categories within the QSR in terms of chicken, in terms of the pizza, and the coffee, and the burger and so on and so forth. So therefore, I mean, while we estimate our numbers on the basis of some inputs from the online channel, some inputs on the basis of our own market intelligence from our field teams and all. But I would not like to quote these numbers because they are not based on any authentic source.
Okay. Okay. So I'll tell you why I'm asking this. We just want to understand, see, we understand there's a consumer slowdown, but in that, there are obviously in some spaces, we've seen even alcohol beverages, some companies are doing better than the other ones. In this, unfortunately, we only have QSR who have the same segments. So we're just trying to understand, could it be that these pizza and chicken are facing issues, but let's say healthy options are doing better? Is there anything like that which we could quantify?
See, there's no measure available. That's what I said. Nobody is measuring this market on a formal basis. And there are a lot of these local brands which are also there. So it's kind of hard to estimate as we discuss.
Okay. And maybe this is missed, but how do we see now? How are we seeing signs of demand picking up? And how do we see in terms of us gaining market share? From whatever you are doing, what are we doing to gain market share going ahead?
See, in this category, it's all about because, for example, let's say this is a category where you need to have a physical location to be able to get the consumers either online or on an offline basis. So this is not a distribution model that you can push into distribution and you can generate the demand. And hence, your physical presence of the store or the kitchen to be able to service the consumer also is very important. And hence, the number of stores, the penetration of those stores, the location of those stores also matters a lot. So therefore, you'll not be able to apply the traditional FMCG principles to this one.
Okay. Fine. Sure, sir. Thank you.
Yeah. Okay.
Thank you. Before we take the next question, a reminder to all the participants, you may press star and then one to ask a question. Our next question comes from the line of Saurabh Kundan from Goldman Sachs. Please go ahead.
Yes, sir. Thank you very much for the opportunity. Just one question on the Thailand business. Seems to be growing at a decent pace. Any guidance you could give us on store additions there for the rest of the year and generally next year, etc.? And overall for the international business, the margins that we see in the first half, should those sustain going forward? That's all.
Saurabh, on Thailand, we had talked about opening about 20-21 stores during this year as far as KFC is concerned. So we stay with the same numbers. There's no change. And as far as the future is concerned, we will be kind of optimizing these numbers a little bit because there is a negative SSSG that we've seen in Thailand also while we continue to maintain the profitability. But there are these early signs because Thailand, as you know, is sitting at close to almost 1,150 KFC stores for a small country like Thailand. And hence, we are doing the entire market study to understand, and we are working with Yum to see what is the potential of the market and to ensure that we continue to maintain the growth through the store openings as well as SSSG .
Okay. Thank you. Just one very quick question on the Sky Gate brand. You will break even by the end of this financial year. I wanted to ask on the product side or the process because I recall Biryani by Kilo used to take a lot of time to prepare, etc. Have you made changes to that or that you haven't touched that part of the business?
So Saurabh, as far as the regular channel is concerned, we've not touched that part at all because it's a very strong brand, and therefore, we've not tinkered with anything. However, when we launched the brand in the airports, which is Mumbai and Pune Airport, obviously, the consumer is not going to be waiting at the airport with those kind of kitchen preparation times. And therefore, we've optimized the entire preparation process to be able to give the faster delivery to consumer. And we will be applying the same process as far as our food courts is also concerned. But in the regular channels, we are not touching the product at all as of now.
And even, for example, all the tests that we've done, all the blind studies that we've done for the airport and food court perspective, obviously, the mode of packaging and mode of delivery to the consumer is different. But otherwise, in terms of ingredients, it's the same. Process is different. And therefore, we kind of are able to achieve faster delivery times without compromising on the product quality or the taste or the flavors.
Thank you very much.
Okay.
Thank you. Our next question comes from the line of Ashish Kanodia from Citi. Please go ahead.
Yeah. Thank you, Manish. So the first question is just on the demand side. I understand you had multiple moving pieces. But if you look at October and just first few days of November, at least on ground, are you seeing any improvement in the demand trend, or is it still muted in the last, say, 35, 40 days?
Ashish, obviously, because, I mean, as you know, I mean, quarter three is a big quarter typically. And that comes and that plays out in the month of December. So October is no different. But we've seen some difference post-Dussehra. Let's see whether it sustains the momentum or not. But overall, let's say if you were to ask me what is the one-word conclusion, it remains muted.
Sure. The second part was on the Thailand business. I think when the SSG is negative, we are seeing margin improvement there. So from a free cash flow point of view, how should we think about the Thailand business? Because I think from next year, maybe you will start optimizing the store expansion as well. So the CapEx intensity also goes down. So when do you see Thailand generating free cash flow?
See, on an operational basis, obviously, it'll be there. But we do have some debt sitting in the balance sheet. Therefore, we need to repay that debt, which is sitting in the Thailand balance sheet. At the same time, we've also tested Tealive in Thailand. We've opened about three stores. As I said, it's predominantly we are doing the test launch. Let's see how the results are. Therefore, if the results are good and we expand the Tealive network there, then that will kind of consume some bit of cash.
Sure, Manish. And last one is when you look at in India, across the franchisee brands and your own brands, broadly, what kind of a store expansion you are looking in current financial year and maybe next financial year? And broadly, if you can also help us with what kind of a CapEx we should assume just for the franchisee and your own brands because, I mean, the challenge is some of them will be airport stores. Some of them could be delivery stores. So if you can give us some sense on that.
Overall, between Ashish, let's say, franchise brands and own brands put together, we are looking at about adding 100 odd stores, which includes, let's say, as I said, there could be some on a test phase basis. Biryani by Kilo will be expanding into the retail channel. Vaango!, we continue to expand. The CapEx on those 100 stores will be small. It'll be at best, whatever, five to seven, eight crores, not more than that.
Manish, when you say 100 stores, this is for current financial year, FY26?
Sorry. Sorry, 50 cause 50 are closed . My bad.
But Manish, on the 100 stores, is it current financial year when you plan to add net new additions?
Yeah, 100 net. Correct.
Sure. Sure. Got it. Thank you, Manish. All the best.
Okay.
Thank you. Ladies and gentlemen, we will take that as the last question for today. I now hand the conference over to the management for closing comments.
Thank you very much. We hope we have been able to answer all your questions satisfactorily. Should you need any further clarifications or would like to know more about the company, please feel free to contact our investor relations team. Thank you once again for your interest and support and for taking the time out to join us on this call. Thank you.
Thank you. Ladies and gentlemen, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.