Detailed Coverage

Devyani International FY26 Results: Revenue Up, Loss Widens Amid Merger Plans

Consolidated Revenue: ₹ 5,611.5 crore
Consolidated Loss: ₹ 42.535 crore

Reader Takeaway: Revenue growth faces profitability challenges; merger with Sapphire Foods is a key strategic move.

What just happened

Devyani International Limited (DIL) announced its financial results for the fiscal year ended March 31, 2026. Consolidated revenue from operations increased by 13.3% to ₹ 5,611.5 crore. However, the company reported a consolidated net loss of ₹ 42.535 crore, a significant widening from the ₹ 6.9 crore loss in the previous year. EBITDA stood at ₹ 855.4 crore, with an EBITDA margin of 15.2%.

Why this matters

The increased revenue signals continued market presence, but the widening loss points to challenges in profitability. This performance comes at a crucial time as the company is undertaking a significant merger with Sapphire Foods India Limited and has integrated new brands, impacting short-term financials.

The backstory

Devyani International has been expanding its quick-service restaurant (QSR) footprint. The company faced a tough operating environment due to reduced consumer discretionary spending. To bolster its portfolio, DIL acquired Sky Gate Hospitality, adding brands like 'Biryani by Kilo'.

What changes now

The proposed merger with Sapphire Foods aims to create a larger entity operating over 3,000 restaurants and nearing USD 1 billion in revenue. This strategic consolidation could redefine its market position. Additionally, Manish Dawar has been appointed President & Group CEO, effective April 1, 2026, succeeding Virag Joshi.

Risks to watch

The company's ability to navigate the integration challenges of the Sapphire Foods merger and the performance turnaround of acquired brands like 'Biryani by Kilo' will be critical. Sustained profitability amidst a recovering QSR market remains a key concern.

Peer comparison

Information on peer performance for FY26 is not provided in the filing.

Context metrics (time-bound)

As of March 31, 2026, Devyani International operated 2,256 stores globally, with 1,857 in India. KFC India saw a same-store sales growth (SSSG) recovery of 4.9% in Q4 FY26, the highest in 14 quarters.

What to track next

Investors will be closely monitoring regulatory approvals for the Sapphire Foods merger, the successful integration of acquired brands, and the company's return to profitability in the coming financial year.