DEVYANI
Small CapDevyani International Limited
Consumer
Devyani International Limited is one of India’s largest QSR operators, with over 2,500 stores across India, Thailand, Nigeria, and Nepal. It is the largest franchisee of Yum! Brands in India & Nepal, and sole franchisee for Costa Coffee. DIL also operates indigenous brands like Vaango and Biryani By Kilo.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend argues for patience, and recent execution is mixed.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 31 Mar 2026
Bad · 22/100margin compression · Rev +19% YoY
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,436.9 Cr | +18.5% | -0.3% |
| EBITDA | ₹220.3 Cr | +18.6% | -4.6% |
| Operating margin | 15.3% | +1 bps | -70 bps |
| PAT | ₹-9.8 Cr | NDF | NDF |
| PAT margin | -0.7% | +70 bps | +8 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Where growth can come from, and what can break the case
Devyani International reports Q4 FY26 revenue growth of 18.5% YoY to INR 14,369 Mn, driven by KFC India's strongest SSSG in 14 quarters at +4.9%. Consolidated EBITDA margin declined 0.6% YoY to 16%. Company added 217 net new stores in FY26, reaching 2,256 total stores.
While KFC India's strong SSSG is encouraging, the consolidated EBITDA margin contraction raises questions about unit economics and cost management. The proposed merger with Sapphire Foods is a transformative step, but its execution and synergy realization will be critical. Management changes add another layer of uncertainty during this integration phase.
KFC India Revenue Mix by Channel (Q4 FY26)
Latest issuer-disclosed distribution across 2 reported categories.
KFC India Performance
KFC delivered its strongest performance in the last 14 quarters, posting a healthy 4.9% positive SSSG and nearly 15% year-on-year growth during the quarter.
Network Expansion
Overall, our footprint growth was calibrated, and we ended the year with a global network of 2,256 stores.
Disruptive Value Offerings
Disruptive value – combos and meals that provide value to customers while delivering higher AOVs.
BBK Turnaround & Expansion
With BBK turnaround achieved, target footprint expansion- BBK express under test.
Net New Stores FY26
Added 217 net new stores in FY26.
Total Stores
2,256 Stores as of Mar 31, 2026.
BBK Express Format Stores
Includes 20 BBK express format stores.
Stable Demand Sentiment
Demand sentiment during the quarter remained broadly stable – helped by favorable policy stimulus and GST rate rationalization.
Improved Consumption Trends
Encouragingly, we continue to witness improvement in the consumption trends, as far as our brands are concerned.
Value-led Initiatives
Our value-led initiatives and accessibility-focused campaigns at KFC are resonating well with our consumers.
External and Seasonal Factors
While external and seasonal factors remain fluid, we are optimistic about demand conditions.
Challenging Operating Environment
The year has been a defining one for Devyani International — a year in which we navigated a challenging operating environment.
Merger Execution
The proposed merger with Sapphire Foods, while strategic, carries execution risks related to synergy realization and operational integration.
Management Transition
Transformation of the management team under a new CEO introduces potential execution risks during the transition period.
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
The QSR business exhibits seasonality, making YoY comparisons essential for understanding underlying growth and performance trends. However, QoQ analysis is also relevant to track sequential recovery in SSSG and improvements in brand contribution margins, as highlighted by management.
KFC India SSSG
KFC (India) posted SSSG of +4.9% in Q4 FY26, its highest in the last 14 quarters.
Consolidated Gross Margin
Consolidated Gross Margin for Q4 FY26 was 68.8%, a +0.3% YoY improvement.
Consolidated EBITDA Margin
Consolidated EBITDA Margin for Q4 FY26 was 16%, a -0.6% YoY decline.
Pizza Hut India SSSG
Pizza Hut India reported SSSG of -3.7% in Q4 FY26.
Strategic Merger
Our proposed merger with Sapphire Foods is a strategic combination... will emerge as one of the largest QSR platforms globally.
Management Team Transformation
Our focus is to bring in experienced and forward-looking professionals with deep operational and strategic expertise.
Technology & Data Focus
Technology, automation, and data-led decision making will remain central and critical to this journey.
Unchanged Strategic Priorities
Our strategic priorities remain unchanged — disciplined expansion, stronger profitability, and deeper consumer relevance through innovation and digital engagement.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| Merger Synergies | Proposed merger with Sapphire Foods progressing well. | Realization of meaningful synergies from the proposed merger with Sapphire Foods. |
| KFC SSSG | KFC India SSSG at +4.9% in Q4 FY26. | Sustained positive SSSG for KFC India, building on the Q4 FY26 performance. |
| EBITDA Margin | Consolidated EBITDA Margin at 16% in Q4 FY26, down 0.6% YoY. | Improvement in consolidated EBITDA margin, reversing the Q4 FY26 decline. |
| New Management Team Impact | New management team largely expected in place by next quarter. | Successful integration and performance impact of the new management team. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
43NeutralSMA20 -9.5% / mo
Technical chart
DEVYANIdaily · 6M-17.6%Technical trend read
NeutralTrend is undirectional — long-term trend unclear. RSI 42.
- SMA20 roughly flat — short-term momentum stalled.
- RSI(14) at 42 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 30% off 52W high · 21% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Valuation, score drivers, trust methodology, financials, and peers
Use these sections after reviewing the decision summary, latest result, thesis, management accountability, and technical timing above.
Fundamental score breakdown
WATCHLISTWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- FCF yield is supportive at 3.5%.
- Cash flow contributes 7/10 to the score.
- Growth contributes 13/25 to the score.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 5/30; verify the latest quarterly trend.
- Balance sheet is weaker at 4/15; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +2 points.
Factor attribution
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 24th percentile of the scored universe and 23rd percentile within Consumer. Main check: financial discipline is weak at 28/100.
Mixed Trust Lite: Promoter holding is 61.4%. Key concern: Debt/equity is 2.49.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 23rd pctile, median 67 · Small: 28th pctile, median 65
94 documents indexed, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 61.4%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 3.5%.
- ▸7 years of positive FCF.
Trust risks
- ▸Debt/equity is 2.49.
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸Promoter holding fell 1.3%.
- ▸ROCE is low at 4.7%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Intrinsic value
Fundamentals
Valuation
- P/E
- —
- P/B
- 8.88
- EV/EBITDA
- 11.66
- Market Cap
- 13699.00Cr
Profitability
- ROE
- -1.67%
- ROCE
- 4.66%
- ROA
- -0.64%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 38.00%
- EPS 5Y
- 12.00%
- Revenue 3Y
- 23.00%
- EPS 3Y
- -15.00%
Balance Sheet
- Debt/Equity
- 2.49
- Interest Coverage
- 3.08×
- Altman Z
- 3.20
- Book Value
- 12.50
Cash Flow
- FCF Yield
- 3.50%
- FCF Positive Y
- 7/5
- OCF
- 919.00 Cr
- EPS TTM
- -0.31
Shareholding
- Promoter Hold
- 61.37%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 20%
Financial History
Updated 9/6/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.