Devyani International (DIL), India’s biggest Yum Brands franchisee, is the company that ensures your “Friday night cheat meal” happens without guilt—because they take the blame for your KFC, Pizza Hut, and Costa Coffee indulgence. With 2,145 stores post the Biryani by Kilo acquisition, they’re expanding faster than your waistline after a family bucket. But with ₹5,086 cr sales and still posting a net loss last year, the joke’s on shareholders: burgers are profitable, but the company isn’t.
2. Introduction
Let’s be clear—Devyani International is no small fry. It’s part of RJ Corp, Ravi Jaipuria’s empire that already includes Varun Beverages (Pepsi’s India muscle). Basically, one family controls both your pizza dinner and your Pepsi bottle. That’s vertical integration of your cholesterol.
Core brands (KFC, Pizza Hut, Costa Coffee) make up ~82% of sales, international business ~12%, and the “others” (Vaango, food courts, now Biryani by Kilo & Goila Butter Chicken) ~6%.
In FY22 they had ~910 stores in India. Today, including Thailand, Nigeria, and Nepal, the count is 2,145. The average Indian promoter takes 20 years to hit 2,000 outlets. Devyani did it in 3, mostly by swiping the corporate credit card abroad.
But here’s the spicy part: Despite being a QSR giant, PAT is a measly ₹3.9 cr in Q1 FY26, down 87% YoY. Translation: while you’re enjoying crispy chicken, the balance sheet is soaking in extra oil.
Question for you: Would you rather eat at a KFC run by Devyani or own the stock that delivers samosa-sized profits?
3. Business Model – WTF Do They Even Do?
Core Brands (82%)
KFC (617 India stores, 40 Nigeria, 295 Thailand): Fried chicken is universal, whether in Lucknow or Lagos. Yum Brands takes 6.3% royalty cut—like a landlord who eats from your fridge.
Pizza Hut (570 India stores): Middle-class party staple, competing with Jubilant’s Dominos.
Costa Coffee (192 India stores): Hipster fuel. They’ve expanded from 55 stores in FY22—basically chasing Starbucks with a smaller wallet.
International Business (12%)
Nigeria, Nepal, Thailand. Thailand came via a 2024 acquisition. Great move: selling fried chicken in Bangkok sounds like selling sand in Dubai, but apparently it works.
Other Brands (6%)
Vaango: South Indian thali for North Indian malls.
Food Courts (airports/malls): Tie-up with PVR INOX means now you can eat Pizza Hut while watching a Salman Khan flop.
Sky Gate (Biryani by Kilo, Goila Butter Chicken, Bhojan): Latest ₹431 cr acquisition. Because nothing screams “fast food” like a one-hour wait for handi biryani.
Bottom line: DIL doesn’t own brands. It rents them (franchise). Yum dictates menus, royalties, and ad spend. DIL just flips real estate into fried chicken outlets.
4. Financials Overview
Metric
Latest Qtr (Jun’25)
YoY Qtr (Jun’24)
Prev Qtr (Mar’25)
YoY %
QoQ %
Revenue
1,357
1,222
1,213
11.0%
11.9%
EBITDA
206
215
186
-4.2%
10.8%
PAT
3.9
30.5
-22.3
-87.1%
NM
EPS (₹)
0.03
0.25
-0.12
-87.1%
NM
Commentary: Sales growing double-digit, but PAT collapsed harder than Bollywood remakes. EPS is effectively zero—at CMP ₹180, P/E isn’t even calculable.
5. Valuation – Fair Value Range Only
P/E Method: EPS TTM = -₹0.10. Losses mean P/E not meaningful. But assume normalized EPS (₹2–3 if margins recover) → fair value range ₹100–₹150 at industry P/E 40–50.
EV/EBITDA Method: EV = ₹25,200 cr. EBITDA FY25 ~₹800 cr. EV/EBITDA = 30 vs industry ~20. Fair value range ₹540–₹600/share equivalent (divide properly by EBITDA multiple → ₹120–₹150).
DCF (simplified): Assume FCF ₹300 cr growing at 12%, discount 11%. PV ≈ ₹20k–₹22k cr. Per share ~₹160–₹180.
👉 Fair Value Range: ₹120 – ₹180 vs CMP ₹180.
Disclaimer: Educational purposes only. Not investment advice.
