Q1 2027 Devyani International Ltd Earnings Call Transcript
Key Points
- Devyani International Ltd (BOM:543330) reported a strong start to the financial year with positive same-store sales growth (SSSG) across most brand portfolios, including KFC, Biryani by Kilo, Costa, and Vango.
- The company achieved its highest ever EBITDA of Rs. 255 crores, representing 16.1% of revenues, despite facing cost inflation challenges.
- KFC posted a positive SSSG of 3.3% and revenue growth of nearly 12% year-on-year, with a focus on increasing dine-in visits.
- The international business segment delivered strong growth, with a 20% year-on-year increase in revenues, showcasing effective cost management and operating leverage.
- The merger process with Sapphire Foods is progressing on track, with approvals received from NSE and BSE, and completion expected by the end of FY 2027.
- The macroeconomic environment remains challenging, with pressures from elevated crude oil prices, LPG cost inflation, and a volatile operating environment.
- Pizza Hut continues to face challenges, posting a brand contribution loss of INR4 crores, with efforts ongoing to improve its product quality and market positioning.
- The company is experiencing higher utility and wage costs due to seasonal factors and inflationary pressures.
- The rupee remains under pressure, and the Reserve Bank of India has moderated its growth outlook, raising concerns about future economic stability.
- The company is still in the process of integrating new leadership and technology platforms, which may take time to fully realize the benefits and efficiencies.
Ladies and gentlemen, good day and welcome to the Divyani International Earnings Conference Call.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes.
Should you need assistance during the call, please signal an operator by pressing star and zero on a touch tone phone.
Please note that this conference is being recorded.
I now hand the conference over to Mr. Anup Pujari 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 Q1 FY27 Earnings Conference Call.
We have with us Mr. Ravija Puria, Non-Executive Chairman of the company, Mr. Raj Gandhi, Non-Executive Director, Mr. Manish Tawar, President and Group CEO, and Mr. Anupam Kumar, CFO of the company.
We will initiate the call with opening remarks from the Chairman. Followed by key business and financial
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