Devyani (DEVYANI) Q4 25/26 earnings summary

Executive summary

• Achieved strong Q4 and FY 2026 performance, navigating a challenging environment and executing a strategic merger with Sapphire Foods to create one of the largest global QSR platforms.

• Leadership transformation underway, with new CEO and key hires in technology and marketing to drive digital and operational excellence.

• Ended FY26 with a global network of 2,256 stores, adding 217 net new stores during the year.

• Focused on disciplined expansion, operational efficiency, and digital transformation to enhance customer experience and profitability.

• Audited consolidated and standalone financial results for the quarter and year ended March 31, 2026, were approved, with unmodified audit opinions from joint statutory auditors.

Financial highlights

• Q4 consolidated revenue grew 18.5% year-on-year to INR 14,369 million; FY26 revenue reached INR 56,114.79 million.

• KFC posted 4.9% SSSG and nearly 15% year-on-year revenue growth in Q4, with brand contribution up 20% to INR 99 crores and margin at 17%.

• International business revenue grew 20% year-on-year, crossing INR 5,033 million in Q4.

• Q4 FY26 PAT loss of INR 98 million; FY26 consolidated net loss of INR 425.35 million.

• Operating EBITDA for Q4 was INR 2,295 million; EBITDA margin at 16.0%.

Outlook and guidance

• Plans to add 200-225 net new stores in FY 2027, with 100-110 from KFC and the rest from Costa Coffee, Biryani By Kilo, and international businesses.

• No net new Pizza Hut stores planned for 2026; focus on consolidation and realignment.

• Merger with Sapphire Foods expected to complete by end of current fiscal year, unlocking synergies and accelerating growth.

• Board approved a Scheme of Arrangement for the amalgamation of Sapphire Foods India Limited, effective April 1, 2026, pending regulatory approvals.