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Earnings Call Transcript

Devyani International Earnings Call Transcript: Key Takeaways

Devyani International delivered its highest-ever EBITDA despite macroeconomic volatility and inflationary headwinds. KFC's double-digit sales growth and operational rebalancing toward dine-in channels are driving a recovery narrative, while Pizza Hut remains in a foundational reset phase.

Guidance and delivery
Management target Revenue FY27
Highlights
Revenue growth16.5% YoY growth reaching ₹1,581 crore consolidated revenue.
MarginsKFC margins expanded; consolidated operating EBITDA at 9.6%.
Demand visibilityStable demand but macro factors like El Niño pose risks.
Management confidenceConfident, focusing on 'DIL 2.0' and post-merger integration with Sapphire.

Growth

Consolidated revenue grew 16.5% YoY to ₹1,581 crore, with gross margins improving to 69.1%.

Outlook

KFC targeting 5-6% SSSG and 20% brand contribution margins within two years.

Risks

Persistent inflation in LPG, wages, and El Niño risks threaten consumption recovery.

Last quarter's promises, checked

Delivered

  • Guided 200-225 new stores → delivered 217 net additions (= BEAT)
  • Guided KFC 100-110 stores → delivered 110 stores (= BEAT)
  • Guided Sapphire merger completion by FY27 end → process on track (= BEAT)

Partly delivered

  • Guided KFC 5-6% SSSG → delivered 3.3% SSSG (= PARTIAL)

Missed

  • Guided consolidate and realign Pizza Hut → SSSG at -2.2% (= MISS)
  • Guided stable revenue growth → revenue 1,581cr vs 1,437cr previous quarter (= MISS)
Source

Earnings Call Transcript filed with BSE, NSE: DEVYANI. Summary written with AI assistance from the document.

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Devyani International Ltd: key numbers

Share price
₹135.02
Market cap
₹16,647 Cr
Revenue (annual)
₹5,611 Cr
Net profit (annual)
₹-38.63 Cr
P/E (TTM)
-601.6×Sector 43.7×
Promoter holding
61.36%+0.00% QoQ
FII holding
6.81%Current quarter

Reference market data from a third-party provider, updated daily. Not a valuation or a recommendation.

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