Devyani International Limited (DEVYANI)

Consumer Services · Leisure Services · NSE · Updated 29 July 2026

By StockFin Research Team • AI-Assisted Analysis • Source: BSE/NSE Filings

₹118.36 ↓ 29.1% (1Y)

🎯 Key Takeaways

Devyani International Limited is in a strategic growth and integration phase, transitioning from standalone operations to a consolidated QSR platform through its proposed merger with Sapphire Foods. Management is focused on scaling store networks, expanding into Tier II/III cities and international markets, and driving margin improvement despite macroeconomic headwinds.
Revenue grew 5.9% QoQ to ₹1,294 in Q3FY25.
⚠️ Integration risk from the Sapphire Foods merger, which is still pending regulatory and shareholder approvals and may face operational or cultural chal

Market Cap

₹14,559

P/E Ratio

-369.0

Div Yield

0.00%

Promoter

0.0%

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📖 The Story

Devyani International Limited is in a strategic growth and integration phase, transitioning from standalone operations to a consolidated QSR platform through its proposed merger with Sapphire Foods. Management is focused on scaling store networks, expanding into Tier II/III cities and international markets, and driving margin improvement despite macroeconomic headwinds. The company has demonstrated consistent revenue growth and profitability recovery, supported by strong same-store sales and operational efficiency gains.

📰 What's Happening

In Q1 FY27, Devyani reported consolidated revenue of ₹15,805 million, up 16.5% YoY, with PAT reaching ₹171 million — the highest in eight quarters — driven by margin expansion and robust same-store sales across KFC, Costa, and Vaango. Operating EBITDA rose 38% YoY to ₹1,511 million, with margin expanding to 9.6%. Management confirmed store expansion targets are on track for FY27 and highlighted progress toward completing the merger with Sapphire Foods by end of FY27, which is expected to create a $1B+ QSR platform with over 3,000 stores. The merger has already received regulatory approvals from NSE and BSE. Earlier, in FY26, the company added 217 net new stores, taking its global footprint to 2,256 stores, and emphasized digital transformation and brand diversification through emerging concepts like Vaango and Sanook Kitchen.

Source: Stock Announcements

📊 Quarterly Results (₹ Cr)

Metric	Q4FY23	Q1FY24	Q2FY24	Q3FY24	Q4FY24	Q1FY25	Q2FY25	Q3FY25
Revenue	755	847	819	843	1,047	1,222	1,222	1,294
Operating Profit	162	133	147	151	145	226	201	222
OPM %	20.0%	20.5%	18.9%	17.4%	16.5%	17.7%	16.0%	16.5%
Net Profit	60	-2	36	5	-49	22	-5	-8
EPS	₹0.50	₹0.10	₹0.28	₹0.08	₹-0.06	₹0.25	₹0.00	₹0.00

The company has reversed a multi-quarter profitability trough, with PAT turning positive in Q1 FY25 and continuing upward momentum into Q1 FY27, where it hit its highest level in eight quarters. Revenue growth has accelerated, supported by same-store sales growth across key brands, while operating margins have expanded notably — from 16.5% in Q3FY25 to 16.1% in Q1 FY27 on higher EBITDA. Despite a temporary dip in profitability during FY24 due to expansion and restructuring costs, the trend has clearly inflected, with margins and profitability now responding positively to scale and operational discipline.

🔮 Management Outlook & What's Next

Management has consistently emphasized the completion of the Sapphire Foods merger by March 2027 as a pivotal milestone, targeting over 3,000 stores and $1 billion in annual revenue for the combined entity. They expect the merger to unlock ₹2-2.25 billion in annual synergies, enhancing scale, efficiency, and profitability. Store expansion is on track for FY27, with plans to deepen penetration in Tier II/III cities and international markets. Management also highlighted ongoing investments in digital infrastructure, including AI and automation, to improve operational efficiency and customer experience, signaling a long-term focus on scalable growth.

Extracted from official company announcements. Not StockFin.ai's opinion.

⚖️ Peer Comparison — Leisure Services

Company	MCap (₹ Cr)	P/E	ROCE	ROE	D/E
The Indian Hotels Company Limited	93,413	51.8	—	—	—
Indian Railway Catering And Tourism Corporation Limited	42,876	34.6	—	—	—
ITC Hotels Limited	32,386	40.0	—	—	—
Jubilant Foodworks Limited	30,442	82.2	—	—	—
EIH Limited	19,768	27.9	—	—	—
Chalet Hotels Limited	17,183	161.1	—	—	—
Ventive Hospitality Limited	15,255	30.4	—	—	—
Devyani International Limited	14,559	-369.0	—	—	—
Travel Food Services Limited	14,464	50.6	—	—	—
Leela Palaces Hotels & Resorts Limited	13,831	34.1	—	—	—

🔗 Peer Stock Analyses

INDHOTEL IRCTC ITCHOTELS JUBLFOOD EIHOTEL

⚠️ Risk Factors

1. Integration risk from the Sapphire Foods merger, which is still pending regulatory and shareholder approvals and may face operational or cultural challenges. 2. Near-term demand softness, as flagged in the annual report, which could pressure same-store sales if macroeconomic conditions persist. 3. Execution risk around synergy realization, with management projecting ₹2-2.25 billion in annual benefits but no guarantee of timely or full delivery. 4. High capital intensity of expansion into Tier II/III and international markets, which may strain cash flows if store economics underperform.

📋 Recent Filings

🧠 Analyst's Read

Devyani International is transitioning from a turnaround phase to a growth acceleration trajectory, underpinned by strong operational momentum and strategic consolidation via the Sapphire Foods merger. The key watchpoint is the timely and successful integration of the merger and realization of synergies, which will determine whether the company can sustain its margin expansion and scale profitably. Investors should monitor execution updates, same-store sales trends, and guidance on FY27 capex and store openings.

Based on filing content and financial data. Not a recommendation.

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Data sourced from stock announcements. Analysis generated by StockFin.ai.
For informational purposes only — not investment advice. Updated 2026-07-29.

Editorial & Data Transparency Notice

This analysis was programmatically compiled using StockFin AI utilizing official regulatory disclosures from the BSE and NSE. Content is automatically synthesized and audited against public financial filings. StockFin.ai is an educational research platform and is NOT a SEBI-registered investment advisor or research analyst.

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