Q3 2026 Devyani International Ltd Earnings Call Transcript
Key Points
- Devyani International Ltd (BOM:543330) reported a 12.1% year-on-year growth in India operations, with consolidated revenues reaching INR1,441 crores, up 11.3% year-on-year.
- The company achieved breakeven brand EBITDA for Biryani By Kilo ahead of schedule, indicating strong operational efficiency.
- The International business added 20 new stores in Thailand and Nepal, contributing to a total store count of 2,279 stores globally.
- The proposed merger with Sapphire Foods is expected to create one of the largest diversified F&B platforms in India, with more than 3,000 stores globally and a turnover approaching USD1 billion.
- Devyani International Ltd (BOM:543330) has seen positive same-store sales growth (SSSG) across all brands in January, except for Pizza Hut, indicating a potential turnaround in sales momentum.
- Pizza Hut continues to face challenges, with the company planning to shut down loss-making stores and not add any net new units in 2026.
- Despite improvements, the KFC brand in India has experienced 10 quarters of SSSG decline, raising concerns about long-term brand performance.
- The company is lagging behind in technology compared to peers, which could impact operational efficiency and customer engagement.
- There is a need for a differentiated strategy for KFC to address cannibalization and improve SSSG and profitability.
- The company faces challenges in maintaining EBITDA margins in a weak environment, with a focus on turning around SSSG and ADS numbers.
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 on Devyani International's Q3 and 9M 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'll 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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