Devyani International Limited (DEVYANI)
Small CapConsumer stocks · Small cap · NSE
Devyani International Limited is one of India’s largest chain quick service restaurant (QSR) operators, with a network of over 2,250 stores across India, Thailand, Nigeria, and Nepal. DIL is the largest franchisee of Yum! Brands in India and Nepal, and sole franchisee for Costa Coffee, New York Fries, and Sanook Kitchen. Also owns indigenous brands like Vaango, Biryani By Kilo, and Goila Butter Chicken.
One read, four checks
75+ is strong, 60-74 is usable, 45-59 is mixed, and below 45 needs caution. These are research lenses, not buy/sell instructions.
Weak fundamentals, management trust needs verification, price trend is neutral, and recent execution is weak.
Fundamental lens: valuation, quality, growth, balance sheet, and cash flow.
low confidence · 0/0 claims checked
Timing lens: price trend and sector relative strength.
Rolling lens: recent quarterly delivery, not the latest single-result score.
Quarter ended 30 Jun 2026
Excellent · 100/100Rev +17% YoY · PAT +750% YoY · margin expansion · +10% QoQ · operating leverage
| Metric | This quarter | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,581 Cr | +16.5% | +10.0% |
| EBITDA | ₹254 Cr | +23.3% | +15.5% |
| Operating margin | 16.0% | +100 bps | +100 bps |
| PAT | ₹17 Cr | +750.0% | NDF |
| PAT margin | 1.1% | +93 bps | +178 bps |
NDF means not disclosed in the current structured filing feed. It is intentionally not treated as zero.
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Business & thesis
Growth engines, tailwinds/headwinds, and risk radar from management commentary
Where growth can come from, and what can break the case
Q4 FY26 Consolidated Revenue grew 18.5% YoY to INR 14,369 Mn, driven by KFC India's +4.9% SSSG, its highest in 14 quarters. Consolidated EBITDA margin declined 0.6% YoY to 16.0%. The company added 217 net new stores in FY26, reaching 2,256 stores.
DIL's Q4 FY26 results show strong top-line growth, anchored by KFC India's best SSSG in 14 quarters. However, consolidated EBITDA margin compression suggests cost pressures or mix shifts. The proposed merger with Sapphire Foods is a transformative step, but integration risks and potential dilution of focus on existing brands need careful monitoring. Management's focus on new leadership and technology is positive.
KFC India Performance
Delivered strongest performance in 14 quarters with +4.9% SSSG and ~15% YoY growth, anchoring growth momentum and network expansion.
International Business Momentum
Positive SSSG momentum and continued improvement in Brand Contribution margins.
Disruptive Value Offerings
Combos and meals designed to provide value to customers while delivering higher Average Order Values (AOVs).
BBK Turnaround & Expansion
BBK delivered +3.2% SSSG, turnaround achieved, with BBK express format under test for footprint expansion.
Total Stores
2,256 stores as of March 31, 2026.
Net New Stores (FY26)
Added 217 net new stores in FY26.
BBK Express Format Stores
Includes 20 BBK express format stores.
Stable Demand Sentiment
Helped by favorable policy stimulus and GST rate rationalization.
Improved Consumption Trends
Value-led initiatives and accessibility-focused campaigns at KFC are resonating, improving average daily sales and SSSG.
Proposed Merger with Sapphire Foods
Expected to unlock meaningful synergies, strengthen execution, and create a more agile and efficient organization.
Challenging Operating Environment
The company navigated a challenging operating environment during the year.
Fluid External and Seasonal Factors
External and seasonal factors remain fluid, impacting demand conditions.
Merger Integration
The proposed merger with Sapphire Foods, while strategic, carries inherent integration risks for a combined entity.
Management Team Transition
New CEO and management team being formed, which could lead to execution risks during the transition phase.
EBITDA Margin Compression
Consolidated EBITDA margin declined YoY, indicating potential pressure on profitability despite revenue growth.
Management accountability
What management said, and what results must prove
Management accountability
What management said, and what results must prove
What management said, and what results must prove
Issuer guidance and extracted claims are tracked against later reported outcomes. Treat these as management statements, not IndiaPulse forecasts.
YoY is crucial for QSR due to seasonality and to assess underlying growth trends. QoQ is also relevant to track sequential momentum, especially for SSSG recovery and margin performance, as highlighted by management.
KFC India SSSG
+4.9% in Q4 FY26, highest in last 14 quarters.
BBK SSSG
+3.2% in Q4 FY26.
Consolidated Gross Margin
68.8% in Q4 FY26, +0.3% YoY.
Consolidated EBITDA Margin
16.0% in Q4 FY26, -0.6% YoY.
New Management Team
Focus on bringing experienced professionals with deep operational and strategic expertise, largely in place by next quarter.
Technology & Automation Focus
Technology, automation, and data-led decision making will remain central to enhancing efficiency, scalability, and customer experience.
Strategic Priorities Unchanged
Disciplined expansion, stronger profitability, and deeper consumer relevance through innovation and digital engagement remain unchanged.
India Opportunity Confidence
View on India opportunity remains unchanged, with the proposed merger enhancing execution ability on scale.
Numbers and claims to verify in the next filings
| Checkpoint | Current evidence | What to verify next |
|---|---|---|
| KFC India SSSG | +4.9% (Q4 FY26) | Sustained positive SSSG and continued sequential recovery. |
| Consolidated EBITDA Margin | 16.0% (Q4 FY26) | Stabilization and improvement in profitability margins. |
| Merger Progress & Synergies | Progressing well | Timely completion and realization of stated synergies. |
| New Store Additions | 217 net new stores in FY26 | Continued disciplined network expansion and unit economics protection. |
Verification checkpoints are IndiaPulse research interpretation, not investment advice.
Trend score and candlestick chart
56NeutralSMA20 +23.0% / mo · MACD −
Technical chart
DEVYANIdaily · 1Y · AUTO+18.4%Daily technical trend read
Mixed signalsSignals are conflicting — long-term uptrend intact. RSI 55. Wait for confirmation.
- Price above SMA200 (long-term uptrend) but mid-term MAs not aligned.
- Recent golden cross (SMA50 crossed above SMA200).
- SMA20 rising (~18.7% over last month) — short-term momentum positive.
- RSI(14) at 55 — sideways, no extreme reading.
- MACD below signal, histogram expanding negatively — bearish momentum building.
- 27% off 52W high · 52% above 52W low.
Mechanical read from the price + indicator series above. Not a recommendation — technical setups can reverse without warning, especially around earnings and macro events.
Relative Strength & Trend Stage
- Price is 17.6% above the 30-week proxy.
- The 50-DMA is above the 30-week proxy and its slope is rising +2.1%.
- Both 3-month and 6-month returns are positive.
Valuation & score drivers
U-Score 29 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Valuation & score drivers
U-Score 29 · OVERVALUED · pillar breakdown, sector model, fair-value anchor
Fundamental score breakdown
OVERVALUEDWhy this score?
Top U-Score contributors and drags from the latest stored fundamentals.
Positive drivers
- Cash flow contributes 8/10 to the score.
- Growth contributes 13/25 to the score.
- Balance sheet contributes 3/15 to the score.
Main drags
- Quality is weaker at 0/20; verify the latest quarterly trend.
- Valuation is weaker at 2/30; verify the latest quarterly trend.
- Balance sheet is weaker at 3/15; verify the latest quarterly trend.
Consumer valuation: PE/PEG and brand-quality premium
Consumer franchises can deserve higher multiples, but only when growth quality supports them.
Stored run vs live recompute
This shows the stored score trend when snapshots exist, and also compares the latest stored nightly score with a live recompute from current fundamentals and price.
Score history
12 stored score snapshots. Latest stored move: +0 points.
Factor attribution
Modelled fair value
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust score
Does management behaviour match later outcomes? Claim delivery, forensic breakdown, evidence depth
Trust asks: does management behaviour match later outcomes? Higher is better, but confidence and evidence depth matter as much as the number.
Mixed Trust: Claim history is still being built. It ranks around the 25th percentile of the scored universe and 26th percentile within Consumer. Main check: financial discipline is weak at 28/100.
Mixed Trust Lite: Promoter holding is 61.4%. Key concern: Debt/equity is 2.49.
Usable, but needs evidence. Treat guidance with a margin of safety.
overall median 67 · Consumer: 26th pctile, median 66 · Small: 28th pctile, median 66
91 documents have extracted text, but claim history is not strong enough yet.
0 claims extracted · No contradicted claim yet
How to read this Trust Score
Mixed Trust · low confidenceRead Trust alongside U-Score, result consistency, and technical trend. A cheap stock with weak Trust needs a larger margin of safety; a high Trust score does not make an expensive stock attractive by itself.
Forensic breakdown
Read low sub-scores as due-diligence warnings, not automatic sell signals.
Trust positives
- ▸Promoter holding is 61.4%.
- ▸Promoter pledge is zero.
- ▸FCF yield is positive at 3%.
- ▸7 years of positive FCF.
Trust risks
- ▸Debt/equity is 2.49.
- ▸3 latest quarters had PAT decline worse than 25% YoY.
- ▸ROCE is low at 4.8%.
- ▸ROE is low at -1.6%.
Trust Lite uses financial behaviour only. Prefer claim-tested Trust when enough concall claims have later outcomes.
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Financials
Full fundamentals table and 10-year revenue / profit / ROE history
Fundamentals
Valuation
- P/E
- —
- P/B
- 11.12
- EV/EBITDA
- 13.27
- Market Cap
- 17172.00Cr
Profitability
- ROE
- -1.56%
- ROCE
- 4.75%
- ROA
- -0.41%
- Dividend Y
- —
Growth (CAGR)
- Revenue 5Y
- 38.00%
- EPS 5Y
- 12.00%
- Revenue 3Y
- 23.00%
- EPS 3Y
- -13.00%
Balance Sheet
- Debt/Equity
- 2.49
- Interest Coverage
- 3.22×
- Altman Z
- 3.66
- Book Value
- 12.50
Cash Flow
- FCF Yield
- 2.96%
- FCF Positive Y
- 7/5
- OCF
- 927.00 Cr
- EPS TTM
- -0.22
Shareholding
- Promoter Hold
- 61.37%
- Promoter Pledge
- 0.00%
- Momentum 52W
- 48%
Financial History
Updated 5/9/2026
Revenue
₹ CrNet Profit
₹ CrReturn on Equity
%Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable names in Consumer, ranked by similarity
Peers
Business-comparable peers in Consumer — ranked by industry, sub-sector, theme-tag overlap, market cap, and U-Score similarity. Green cells mark the best available peer metric in this table.