1. At a Glance – Fries Flying, Profits Jogging
If Indian QSR was a college fest, Devyani International Limited would be the guy running the biggest food stall… with the longest line… and the thinnest margins. Market cap sitting at ₹15,169 Cr, stock at ₹123, down ~33% over one year, while the company keeps opening stores like there’s no tomorrow.
Latest Q3 FY26 numbers show ₹1,441 Cr revenue, EBITDA ₹231 Cr, and PAT of –₹11 Cr. Yes, revenue is growing. Yes, stores are multiplying. But profits? Still stuck in traffic near the drive-thru.
ROCE is 6.4%, ROE barely 0.5%, debt at a spicy ₹3,343 Cr, and interest coverage at a worrying 0.86. This is a classic “growth at any cost” story—except the cost is clearly visible on the P&L.
So the real question: is Devyani building a McEmpire… or just funding Yum Brands’ royalty income with Indian shareholder money?
2. Introduction – RJ Corp’s Hungry Child
Devyani International is part of the RJ Corp ecosystem, the same family that gave India cold drinks via Varun Beverages and now gives us fried chicken, pizza, and caffeine addiction. On paper, this is a dream portfolio: KFC, Pizza Hut, Costa Coffee, and now Biryani by Kilo through Sky Gate Hospitality.
But public markets are cruel. They don’t clap for store count. They clap for return ratios.
Since listing, Devyani has grown sales at ~27% CAGR over 5 years, but profits have behaved like a confused intern—sometimes present, mostly missing. FY25 ended with ₹7 Cr loss, TTM PAT is –₹49 Cr, and EPS is –₹0.35.
Yet management keeps expanding aggressively—India, Nepal, Nigeria, Thailand—and now food courts with PVR INOX. The playbook is scale first, margins later. Investors are
asking: later when?
3. Business Model – WTF Do They Even Do?
Devyani doesn’t cook innovation. It cooks execution.
Core Brands – 82% of FY24 Revenue
- KFC India – fried chicken monopoly vibes
- Pizza Hut India – fighting Domino’s PTSD
- Costa Coffee India – premium coffee, mass losses
Revenue grew 62% between FY22–FY24, mostly due to store additions, not magical same-store growth.
International Business – 12% of FY24 Revenue
- Nigeria (KFC)
- Nepal (KFC & Pizza Hut)
- Thailand (295 KFC stores) via acquisition in Jan 2024
Revenue jumped 133% here because Thailand came fully consolidated. Easy growth, but also imported debt and depreciation.
Other Brands – 6% of FY24 Revenue
- Vaango (South Indian veg)
- The Food Street (food courts)
Revenue doubled, but scale is still tiny.
Simple model:
👉 Open stores
👉 Pay royalty + ad fees
👉 Pray ADS improves faster than costs
4. Financials Overview – Growth with a Stomach Ache
Quarterly Comparison (₹ Cr)
| Metric | Latest Qtr (Dec’25) | YoY Qtr (Dec’24) | Prev Qtr (Sep’25) | YoY % | QoQ % |
|---|---|---|---|---|---|
| Revenue | 1,441 | 1,294 | 1,377 | 11.3% | 4.6% |
| EBITDA | 231 | 213 | 192 | 8.5% | 20.3% |
| PAT | -11 | -8 | -24 | NM | NM |
| EPS (₹) | -0.08 | 0.00 | -0.18 | NM | NM |
Annualised EPS rule for Q3:
Average of Q1, Q2, Q3 EPS × 4 → still negative, so no valuation gymnastics here.
Commentary:
