Conference Call with Devyani International Management and Analysts on Q4FY26 & Full Year Performance and Outlook. Listen to the full earnings transcript.
Restaurants company Devyani International announced Q4FY26 & FY26 results Consolidated Financial Highlights: Revenue from Operations: For Q4FY26, the consolidated revenue stood at Rs 14,368.62 million, representing a marginal decrease of 0.28% QoQ compared to Rs 14,408.97 million in Q3FY26, but an increase of 18.49% YoY from Rs 12,125.91 million in Q4FY25. For the full year FY26, revenue reached Rs 56,114.79 million, up 13.34% YoY from Rs 49,510.52 million in FY25. Total Income: Total income for Q4FY26 was Rs 14,510.08 million, compared to Rs 14,532.23 million in Q3FY26 and Rs 12,257.76 million in Q4FY25. Annual total income for FY26 was Rs 56,565.91 million versus Rs 49,880.41 million in FY25, representing a growth of 13.40%. Net Profit/Loss: The group reported a consolidated net loss for the period of Rs 98.39 million in Q4FY26, a decrease in loss compared to a loss of Rs 109.78 million in Q3FY26 and a loss of Rs 167.63 million in Q4FY25. For the full year FY26, the group recorded a net loss of Rs 425.35 million, compared to a net profit of Rs 69.00 million in FY25. Total Comprehensive Income: Total comprehensive loss for Q4FY26 was Rs 150.21 million, compared to a profit of Rs 144.60 million in Q3FY26 and a loss of Rs 161.06 million in Q4FY25. For the full year FY26, total comprehensive income stood at Rs 383.22 million, down 37.86% YoY from Rs 616.33 million in FY25. Earnings Per Share (EPS): Basic and diluted EPS from continuing and discontinued operations for Q4FY26 was Rs (0.08), compared to Rs (0.08) in Q3FY26 and Rs (0.12) in Q4FY25. For the full year FY26, basic and diluted EPS was Rs (0.31). Standalone Financial Highlights: Revenue from Operations: Standalone revenue for Q4FY26 was Rs 8,789.44 million, down 3.01% QoQ from Rs 9,062.04 million in Q3FY26 but up 9.70% YoY from Rs 8,012.25 million in Q4FY25. Annual standalone revenue for FY26 reached Rs 35,726.42 million, an increase of 6.67% YoY from Rs 33,493.33 million in FY25. Total Income: Standalone total income for Q4FY26 stood at Rs 8,957.05 million, reflecting a 9.81% increase YoY from Rs 8,157.15 million in Q4FY25. Full-year FY26 total income was Rs 36,301.45 million compared to Rs 33,992.16 million in FY25. Net Profit/Loss: Standalone net loss for Q4FY26 was Rs 127.35 million, compared to a loss of Rs 122.95 million in Q3FY26 and a loss of Rs 132.64 million in Q4FY25. For the full year FY26, standalone net loss was Rs 331.49 million, compared to a net profit of Rs 237.19 million in FY25. Business Highlights Segment Information: The Group operates in a single reportable business segment, "food and beverages," which includes the operations of various quick-service restaurant brands. Exceptional Items: Consolidated results for FY26 include an exceptional loss of Rs 215.03 million. This includes Rs 122.13 million recognized as an increase in post-employment benefit obligations due to changes in the definition of "wages" under new Labour Codes, and a payment of Rs 92.90 million made under protest related to a lease dispute. Amalgamation of Sapphire Foods: The Board approved a Scheme of Arrangement for the amalgamation of Sapphire Foods India Limited with the Company, with an appointed date of April 01, 2026. The Company will issue 177 equity shares of Rs 1 each for every 100 equity shares of Rs 2 each held in Sapphire Foods India Limited. Acquisition of Sky Gate Hospitality: During the year, the Company completed the acquisition of Sky Gate Hospitality Private Limited ("Sky Gate"). Initially acquiring an 80.72% stake for ~Rs 4,196 million on June 10, 2025, the Company further increased its stake and eventually acquired the remaining founders' stake during Q4FY26, making Sky Gate a wholly-owned subsidiary. Discontinued Operations: Following the acquisition of Sky Gate, its investment in Peanutbutter and Jelly Private Limited and the business of Krazy Kebab Co. were held for sale and presented as discontinued operations. The sale of the 51% stake in Peanutbutter and Jelly was completed in January 2026. Personnel Appointments: The Board approved the appointment of Mr. Kedar Ashok Apte as 'Chief Marketing & Growth Officer' and Mr. Jagdeep Singh as 'General Counsel' effective from May 14, 2026. Store Brands: The Company continues to operate and expand its portfolio of well-known brands including KFC, Pizza Hut, Costa Coffee, Vaango!, BBK Biryani by Kilo, Goila Butter Chicken, Sanook Kitchen, and New York Fries. Ravi Jaipuria, Non-Executive Chairman, Devyani International said, “The year has been a defining one for Devyani International — a year in which we navigated a challenging operating environment while taking transformational steps that position the company strongly for the future. Our proposed merger with Sapphire Foods is a strategic combination of two scaled-up and complementary platforms, united by a shared vision for long-term growth. The merger is expected to unlock meaningful synergies, strengthen execution, and create a more agile and efficient organization capable of accelerating growth across markets. We have also taken steps to transform our management team under the leadership of Manish, our new CEO. Our focus is to bring in experienced and forward-looking professionals with deep operational and strategic expertise. As we prepare for the next phase of growth and integration, these capabilities will be critical in driving transformation across the organization. Technology, automation, and data-led decision making will remain central and critical to this journey. This will also play a key role in enhancing efficiency, scalability, and customer experience. As a result of the stable demand environment and tailored & sustained customer engagement, 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. It continues to anchor our growth momentum and network expansion. Our own and franchised brands also maintained positive SSSG trends. Throughout the year, we remain disciplined in our execution — with a clear focus on protecting unit economics, driving operational efficiencies, and maintaining financial prudence. At the same time, our marketing efforts remained sharply focused on enhancing value perception and improving accessibility for consumers across key brands. Encouragingly, we continue to witness improvement in the consumption trends, as far as our brands are concerned. Our value-led initiatives and accessibility- focused campaigns at KFC are resonating well with our consumers, resulting in improved average daily sales trends and sequential recovery in SSSG performance. While external and seasonal factors remain fluid, we are optimistic about demand conditions and believe the business is well positioned for stronger performance during the year. Our strategic priorities remain unchanged — disciplined expansion, stronger profitability, and deeper consumer relevance through innovation and digital engagement. Our view on India opportunity remains unchanged and the proposed merger further enhances our ability to execute these priorities on scale and reinforces our confidence in the long-term opportunity ahead. This has been a year of resilience, execution, and strategic progress. With the merger progressing well, leadership capabilities strengthening, and demand trends showing signs of recovery, we believe we are entering into our next phase of growth from a position of strength” Result PDF