Devyani InternationalNSE:DEVYANI -2.16%76 Gross Margin % is 54.24% as of Mar. 2026, which is 2% above its 10-year median of 53.07. GuruFocus rates NSE:DEVYANI with a GF Score™ of 76/100 and a GF Value™ of ₹241.27 (Significantly Undervalued). The stock has 3 warning signs investors should review. Among 359 Restaurants companies, Devyani International ranks better than 59.89% on this metric.
NSE:DEVYANI's Gross Margin % is ranked better than 59.89% of 359
companies
in the Restaurants industry
Industry Median: 45.71
vs NSE:DEVYANI: 53.64
Devyani International had a gross margin of 54.24% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Devyani International was 1.20% per year.
Devyani International (NSE:DEVYANI) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Devyani International had a gross margin of 54.24% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Devyani International Gross Margin % Related Terms
Devyani International Gross Margin % Historical Data
* Premium members only.
The historical data trend for Devyani International's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
NSE:DEVYANI vs MCD, SBUX, CMG: Gross Margin % Comparison
For the Restaurants subindustry, Devyani International's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Devyani International Gross Margin % vs Restaurants Industry
For the Restaurants industry and Consumer Cyclical sector, Devyani International's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Devyani International's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Devyani International (NSE:DEVYANI) has a Gross Margin % of 54.24% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Devyani International and its competitors. This is near median its historical median of 53.07. Over the past decade, Devyani International's Gross Margin % has ranged from 49.83 to 54.61. According to the industry distribution chart, Devyani International ranks #144 out of 359 companies in the Restaurants industry, placing it in the top 40.1%.
Is Devyani International's Gross Margin % too high?
Devyani International's current Gross Margin % of 54.24% is near median its 10-year median of 53.07. Over the past 10 years, this metric has ranged from a low of 49.83 to a high of 54.61. The Restaurants industry median Gross Margin % is 45.71. Devyani International's value of 54.24% is 18.7% above this industry median. Based on the distribution chart, Devyani International ranks #144 out of 359 companies in the Restaurants industry, which is above the industry midpoint. Overall, Devyani International has a GF Score™ of 76/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Devyani International's Gross Margin % compare to MCD and SBUX?
According to the Restaurants industry distribution chart, Devyani International ranks #144 out of 359 companies for Gross Margin %. This puts Devyani International in the upper half of its industry. The industry median Gross Margin % is 45.71. Devyani International's value of 54.24% is 18.7% above this benchmark. Historically, Devyani International's own Gross Margin % has ranged from 49.83 to 54.61 over the past decade. While the company's 10-year median is 53.07 vs. the industry median of 45.71, Devyani International has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Restaurants company?
The median Gross Margin % among Restaurants companies is 45.71, based on 359 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Devyani International's current Gross Margin % of 54.24% is 18.7% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Devyani International and its competitors. For the Restaurants industry, the median Gross Margin % is 45.71 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Devyani International's current Gross Margin % is 54.24%, which is near median its own 10-year median of 53.07. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Devyani International stock overvalued right now?
Based on GuruFocus' analysis, Devyani International (NSE:DEVYANI) is currently considered Significantly Undervalued. The stock's GF Value™ is ₹241.27, compared to a current price of ₹112.84 — trading 53.2% below its estimated fair value. The current Gross Margin % is 54.24%, which is near median its 10-year median of 53.07 and 18.7% above the Restaurants industry median of 45.71. Devyani International's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Devyani International (NSE:DEVYANI), the current Gross Margin % is 54.24% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Devyani International (NSE:DEVYANI) Overvalued in 2026?
Based on GuruFocus' analysis, Devyani International stock appears to be undervalued.
The current stock price of ₹112.84 is trading 53.2% below its estimated GF Value™ of ₹241.27.
GuruFocus considers Devyani International to be Significantly Undervalued.
Key valuation signals for NSE:DEVYANI:
Gross Margin %: 54.24% (near median its 10-year median of 53.07)
GF Value™: ₹241.27 vs. price of ₹112.84 (53.2% below fair value)
Industry Position: 18.7% above the Restaurants median (#144 of 359)
No single metric tells the full story. See the NSE:DEVYANI stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Devyani International Ltd is a franchisee of Yum Brands in India and is among the largest operators of a quick-service restaurant chain (QSR chain), operating around 1,243 stores across 155 cities in India. Companies products includes PizzaHut, KFC, Costa Coffee, Vaang.o, The Food Street, and more. Geographically, operates domestically and internationally, with the majority of revenue from India.
76GF Score
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