Devyani International Q4 FY26 Revenue Up 18.5% to ₹14,369 Million; Merger with Sapphire Foods Proposed
Devyani International reported Q4 FY26 revenue of ₹14,369 million, up 18.5% YoY, and FY26 revenue of ₹56,115 million. The company proposed a merger with Sapphire Foods to unlock synergies and accelerate growth. KFC delivered strong SSSG of 4.9%. Management emphasized a focus on technology, automation, and experienced leadership for future growth.
The announcement includes significant financial performance, a proposed merger with another major player (Sapphire Foods), and strategic initiatives for future growth, all of which are material to the company's valuation and future operations.
The company reported strong revenue growth, positive SSSG for key brands, and announced a strategic merger expected to unlock synergies and drive future growth. Management commentary is optimistic about future prospects.
Devyani International Limited (DIL) announced its financial results for the quarter ended March 31, 2026, reporting Q4 revenues of ₹14,369 million, an increase of 18.5% year-on-year. The company's performance was driven by strong growth in its KFC India business, which saw a 14.6% YoY increase, and its international operations, up 20.0% YoY. Own brands reported an 11.5% YoY increase on a like-for-like (LFL) basis, while Pizza Hut India experienced a 3.5% YoY decrease. Q4 EBITDA stood at ₹2,295 million, with an EBITDA margin of 16.0%. For the full fiscal year 2026, DIL's consolidated revenues reached ₹56,115 million.
Mr. Ravi Jaipuria, Non-Executive Chairman, highlighted the proposed merger with Sapphire Foods as a strategic step to unlock synergies and accelerate growth. He also noted the transformation of the management team under the new CEO, Manish, with a focus on experienced professionals, technology, automation, and data-led decision-making to enhance efficiency and customer experience. KFC demonstrated its strongest performance in 14 quarters with a 4.9% positive Same-Store Sales Growth (SSSG) and nearly 15% year-on-year growth during the quarter. The company maintained disciplined execution, focused on unit economics, operational efficiencies, and financial prudence, while marketing efforts aimed at improving value perception and accessibility resonated well with consumers. DIL remains optimistic about demand conditions and believes its strategic priorities of disciplined expansion, stronger profitability, and deeper consumer relevance are well-positioned for future growth, especially with the proposed merger enhancing its ability to execute on a larger scale.
Devyani International Limited operates over 2,500 stores across India, Thailand, Nigeria, and Nepal, representing a blend of global and homegrown brands. It is the largest franchisee of Yum! Brands in India and Nepal and also holds franchises for brands like Costa Coffee and New York Fries. DIL also owns indigenous brands such as Vaango and The Food Street, and has strengthened its Indian cuisine offerings through the acquisition of Sky Gate Hospitality, which owns brands like Biryani By Kilo and Goila Butter Chicken.
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