Q1 2026 Devyani International Ltd Earnings Call Transcript
Key Points
- Devyani International Ltd (BOM:543330) reported a year-on-year revenue growth of 11.1% for Q1 FY26, reaching INR1,357 crores.
- The acquisition of Sky-Gate Hospitality, which operates Biryani By Kilo and Goila Butter Chicken, expands Devyani's presence in the Biryani and Indian Sizzling segment.
- The company is expanding its footprint with new stores in KFC, Pizza Hut, and other brands, and plans to launch three new international brands: New York Fries, Tealive, and SANOOK KITCHEN.
- KFC in India added eight net new stores in Q1 FY26, with a total store count of 704, and is on track to open approximately 100 to 110 net new stores.
- The international business continues to grow steadily, with revenues reaching INR433 crores in Q1 FY26 and improved brand contribution margins.
- EBITDA margin slightly dipped to 15.1% due to deleverage from lower average daily sales and investments in marketing and promotion.
- The Indian operations saw a decline in gross margin by 2.3% year-on-year, primarily due to increased raw material prices and GST changes on rent.
- Pizza Hut India experienced a net decline of 12 stores in Q1 FY26, with a negative same-store sales growth (SSSG) of 4.2%.
- The brand contribution margin for owned brands declined to 6.7% due to the consolidation of Sky-Gate Hospitality, which is currently loss-making.
- Higher aggregator and delivery expenses impacted the financial performance, as off-premises sales increased across key brands like KFC and Pizza Hut.
Ladies and gentlemen, good day, and welcome to the Devyani International earnings conference call. (Operator Instructions) Please note that this conference is being recorded. I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you, and over to you, sir.
Thank you. Good afternoon, everyone, and thank you for joining us for the Devyani International's Q1 FY26 earnings conference call. We have with us Mr. Ravi Jaipuria, Non-Executive Chairman of the company. Mr. Raj Gandhi, Non-Executive Director; Mr. Virag Joshi, CEO and Whole-Time Director; and Mr. Manish Dawar, CFO and Whole-Time Director of the company.
We will initiate the call with opening remarks from the Chairman, followed by key financial highlights from the CFO. Thereafter, we will have the forum open for a question-and-answer session. Before we begin, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the results presentation shared
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