Devyani (DEVYANI) investor relations material

Executive summary

• Q1 FY26 consolidated revenue grew 11.1% year-over-year to INR 13,570 million, driven by KFC, Costa, and international business.

• Acquisition of Sky Gate Hospitality (Biryani by Kilo, Goila Butter Chicken) completed, increasing stake to 86.13% and adding 105 outlets.

• Store count reached 2,145, with 106 net new units added, including international expansion.

• Multi-cuisine, multi-format strategy aims to diversify risk and capture evolving consumer trends.

• Unaudited Q1 FY26 results approved by the Board, with unmodified auditor opinion.

Financial highlights

• Consolidated gross profit at INR 925 crores, gross margin at 68.2%, down 1% year-over-year.

• EBITDA at INR 2,049 million, margin at 15.1%, down from 18.3% last year.

• Profit after tax at INR 22 million, compared to INR 224 million in Q1 FY25.

• Standalone revenue from operations was INR 9,168.88 million, up from INR 8,398.84 million year-over-year.

• Brand contribution margin fell to 13.1% from 15.3% last year.

Outlook and guidance

• Management expects improved industry outlook as macro headwinds subside and new brands scale.

• Focus on scaling profitability, strengthening core and emerging markets, and long-term value creation.

• Integration of Sky Gate brands expected to contribute significantly to future expansion.

• Initiatives to optimize promotional spend and improve gross margins expected to show results in the next quarter.

• Pizza Hut organic expansion to slow, with focus on stabilizing SSSG and improving profitability.