Devyani International Ltd
BSE:543330
Devyani International Ltd
Devyani International Ltd. is a significant player in the Indian food and beverage sector, as it has adeptly positioned itself as a formidable force in the quick-service restaurant (QSR) industry. As a leading franchise operator, Devyani International holds the master franchise rights for some of the most recognizable global brands, including KFC, Pizza Hut, and Costa Coffee in India, Nepal, and Nigeria. The company’s business model revolves around leveraging the power of these internationally acclaimed brands to capture the burgeoning demand for convenient dining options among urban and semi-urban consumers. Devyani International’s strategy hinges on the dual pillars of brand recognition and consumer accessibility, continuously expanding its footprint by opening new outlets and enhancing service efficiency to cater to its diverse customer base.
The revenue streams for Devyani International are largely driven by sales in its extensive chain of restaurants. The company’s operations are characterized by a tight focus on optimizing supply chain logistics, ensuring quality product delivery, and fostering customer loyalty through innovative marketing tactics and value-added services. Devyani has adeptly navigated the complex landscape of consumer preferences and competitive pressures by implementing data-driven strategies for menu innovation and localized offerings. While the primary source of income is through direct food sales in its outlets, an ancillary but significant component arises from collaboration agreements and partnerships, which further underscore its robust position in the fast-paced QSR industry.
Devyani International Ltd. is a significant player in the Indian food and beverage sector, as it has adeptly positioned itself as a formidable force in the quick-service restaurant (QSR) industry. As a leading franchise operator, Devyani International holds the master franchise rights for some of the most recognizable global brands, including KFC, Pizza Hut, and Costa Coffee in India, Nepal, and Nigeria. The company’s business model revolves around leveraging the power of these internationally acclaimed brands to capture the burgeoning demand for convenient dining options among urban and semi-urban consumers. Devyani International’s strategy hinges on the dual pillars of brand recognition and consumer accessibility, continuously expanding its footprint by opening new outlets and enhancing service efficiency to cater to its diverse customer base.
The revenue streams for Devyani International are largely driven by sales in its extensive chain of restaurants. The company’s operations are characterized by a tight focus on optimizing supply chain logistics, ensuring quality product delivery, and fostering customer loyalty through innovative marketing tactics and value-added services. Devyani has adeptly navigated the complex landscape of consumer preferences and competitive pressures by implementing data-driven strategies for menu innovation and localized offerings. While the primary source of income is through direct food sales in its outlets, an ancillary but significant component arises from collaboration agreements and partnerships, which further underscore its robust position in the fast-paced QSR industry.
Revenue Growth: Consolidated revenue reached INR 1,441 crores, up 11.3% year-on-year, with India operations growing 12.1% YoY.
Margin Improvement: Gross margin rose to 68.9%, up 20 bps YoY, and brand contribution margin increased to 13.9% from 11.7% in the previous quarter.
Store Expansion: 54 net new KFC stores and 18 net new Pizza Hut stores were added in the quarter, with total store count at 2,279.
Pizza Hut Restructuring: Loss-making Pizza Hut stores are being shut, with no net new unit additions planned for 2026 to focus on profitability.
Leadership Changes: Virag Joshi to retire as CEO by March 2026; Manish Dawar named President and CEO effective April 2026; Anupam Kumar appointed CFO.
Merger Progress: The merger with Sapphire Foods is on track, expected to create an F&B platform with over 3,000 stores and close to USD 1 billion turnover.
Early Demand Recovery: Positive same-store sales growth (SSSG) was observed in January across most brands except Pizza Hut, reflecting early signs of consumer recovery.
International Growth: International business revenue grew 10.1% YoY to INR 473 crores, with margin improvement and resilience noted in Nepal, Nigeria, and Thailand.
