Devyani International announced its Q1 FY27 results, showcasing a robust performance with consolidated revenue growing 16.5% year-on-year to INR 1,581 crore. The company achieved its highest-ever operating EBITDA of INR 151 crore, marking a significant 38% increase year-on-year. This performance reflects successful turnaround strategies, improved margins, and effective cost management amidst challenging macro conditions.
Devyani International Reports Strong Q1 FY27 Performance
Devyani International Limited (DIL) has announced its financial results for the first quarter of Fiscal Year 2027 (Q1 FY27), ended June 30, 2026. The company has demonstrated a strong turnaround and growth trajectory, with consolidated revenues reaching INR 1,581 crore, an increase of 16.5% year-on-year.
Key Financial Highlights
The company reported significant improvements in profitability. Gross Margin stood at 69.1%, a 0.9% improvement year-on-year. Brand Contribution expanded by 1.1% to 14.2%, amounting to INR 224 crore, which is nearly 26% higher than the previous year. This led to DIL posting its highest-ever operating EBITDA of INR 151 crore, a growth of nearly 38% year-on-year, representing an EBITDA margin of 9.6%.
Brand Performance and Strategy
Same-Store Sales Growth (SSSG) across the brand portfolio remained positive. KFC recorded a positive SSSG of 3.3%, with its revenue growing nearly 12% year-on-year to INR 684 crore. Biryani By Kilo and Vaango also delivered healthy SSSG of over 7%. Pizza Hut’s SSSG improved sequentially to -2.2%, with efforts focused on product quality and value.
The company is actively rebalancing its marketing investments towards the dine-in channel, aiming to improve customer experience. DIL continues to focus on disciplined profitable growth, enhancing its consumer proposition both in-store and online, and preparing for the merged entity with Sapphire Foods.
Merger Progress
The proposed merger with Sapphire Foods is progressing as per expected timelines, with approvals received from both the NSE and BSE in June. The target completion for the merger remains by the end of FY 2027.
Outlook
Devyani International is optimistic about its growth prospects, driven by its strong brand portfolio, strategic focus on dine-in, and the ongoing merger. The company is also investing in technology adoption and management team strengthening as part of its “DIL 2.0” initiative.
Source: BSE
