Devyani International Ltd (DEVYANI) Q2FY27 Concall Summary - Sep-2026 Qtr
Key Takeaways
- Management clarified KFC's SSSG seasonality, noting its +20% growth in North India suggests strong underlying performance comparable to peers, with festival shifts balancing out in Q3.
- The company's medium-term objective for its Biryani By Kilo brand is to achieve a brand contribution margin of 14-15%, up from its current near-double-digit level.
- The merger with Sapphire Foods is on track to close by the end of FY27, with CCI approval secured and SEBI no-objection now awaited.
Performance Overview
- Devyani International Ltd reported positive same-store sales growth (SSSG) ranging from 4% to 9% across its brand portfolio in India, with the exception of Pizza Hut.
- The company achieved consolidated sales of INR 1,519 crores, marking a 10.4% year-on-year increase, driven by transaction-led growth and a recovery in on-premise channel sales.
- EBITDA grew by nearly 18% year-on-year to INR 229 crores, aided by leverage from higher SSSG and stringent cost controls.
- The company added 70 net new stores during the quarter, with KFC leading the expansion with 50 new units, bringing the total global store count to 2,325.
- Significant progress was made on the proposed merger with Sapphire Foods, with the company receiving approval from the Competition Commission of India (CCI).
Financial Metrics
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Operating Performance / Business Segments
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Key Discussions & Insights
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Outlook and Guidance
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Challenges / Concerns
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Industry / Competitive Landscape
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Overall Summary
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Tone & Disclosure
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