Devyani Int. Q4 FY26: KFC SSSG at 4.9%, Merger with Sapphire on Track
Devyani International's Q4 FY26 results showed KFC SSSG at 4.9% and nearly 15% YoY revenue growth to ₹586 crore. Consolidated revenue reached ₹1,437 crore, up 18.5% YoY. The merger with Sapphire Foods is on track for completion by year-end. DIL plans to add 200-225 new stores in FY27.
Key announcements include strong financial results for KFC, significant progress on a major merger, and strategic initiatives for future growth, all of which have a substantial impact on the company's outlook and operations.
The company reported strong performance in KFC, progress on the merger with Sapphire Foods, and a clear strategy for future growth, indicating a positive outlook.
Devyani International Limited (DIL) announced the transcript of its Investors & Analysts Conference Call held on May 15, 2026, following the declaration of Audited Financial Results for the Quarter and Financial Year ended March 31, 2026.
During the call, Chairman Ravi Jaipuria highlighted that the proposed merger with Sapphire Foods is progressing as planned and is expected to be completed by the end of the current fiscal year. He also mentioned the ongoing transformation of the management team under new CEO Manish Dawar, with a focus on bringing in experienced professionals and leveraging technology, automation, and data-led decision-making.
KFC delivered its strongest performance in 14 quarters, with a 4.9% Same Store Sales Growth (SSSG) and nearly 15% year-on-year revenue growth, reaching ₹586 crore in Q4 FY26. Brand contribution for KFC grew nearly 20% year-on-year to ₹99 crore, with margins improving to 17.0%. The company ended FY26 with 783 KFC stores.
Pizza Hut's SSSG was at -3.7%, but showed sequential improvement, with average daily sales stable at ~₹30,000 per store per day. The company ended the year with 639 Pizza Hut stores.
Owned brands like Vaango and Biryani By Kilo reported mid-single-digit positive SSSG. The franchise brand Costa Coffee saw revenue growth of nearly 3%, though input costs impacted gross margins.
On a consolidated basis, DIL reported an 18.5% year-on-year revenue growth for the quarter, reaching ₹1,437 crore. For the full year, revenues crossed ₹5,500 crore, reaching ₹5,611 crore. Operating EBITDA grew 13.8% year-on-year to ₹123 crore.
DIL plans to add approximately 200 to 225 net new stores in FY27. The company has decided to discontinue the Tea Live brand in India and Thailand in the next quarter.
CEO Manish Dawar elaborated on the DIL 2.0 transformation strategy, focusing on reimagining work, expanding brand reach, enhancing efficiency, and driving digital transformation. He mentioned key leadership hires, including a new CTO and Chief Marketing Officer, to support these initiatives. The company is also focusing on enhancing in-store customer experience and driving dine-in traffic through tailored offers and pricing strategies.
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