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View Claim Ledger →Devyani International Limited — Q3 FY26
Devyani International reported Q3 FY26 consolidated revenue of ₹1,441 crore, up 11.3% YoY, driven by India operations growth of 12.1%.
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Devyani International reported Q3 FY26 consolidated revenue of ₹1,441 crore, up 11.3% YoY, driven by India operations growth of 12.1%. KFC added 54 net new stores, while Pizza Hut added 18 net stores but management plans zero net additions in calendar 2026 to focus on turnaround. Skygate brands (Biryani by Kilo) achieved break-even brand contribution ahead of schedule. International revenue grew 10.1% YoY to ₹473 crore. Management noted positive same-store sales growth across most brands in January 2026, except Pizza Hut, citing early signs of consumption recovery. The proposed merger with Sapphire Foods is progressing with expected annual synergies of ₹210-225 crore. Key risks include sustained weakness in Pizza Hut SSSG and potential cannibalization from rapid KFC store expansion.
देवयानी इंटरनेशनल ने वित्त वर्ष 2026 की तीसरी तिमाही में ₹1,441 करोड़ का कुल राजस्व दर्ज किया, जो पिछले साल की तुलना में 11.3% अधिक है। भारत में इसका कारोबार 12.1% बढ़ा। केएफसी ने 54 नए स्टोर खोले, जबकि पिज्जा हट ने 18 नए स्टोर जोड़े, लेकिन कंपनी 2026 में कोई नया स्टोर नहीं खोलने की योजना बना रही है ताकि मौजूदा स्टोर को बेहतर बनाया जा सके। बिरयानी बाय किलो ब्रांड ने समय से पहले ही घाटा खत्म कर लिया। अंतरराष्ट्रीय कारोबार 10.1% बढ़कर ₹473 करोड़ हुआ। जनवरी 2026 में ज्यादातर ब्रांडों की बिक्री बढ़ी, सिवाय पिज्जा हट के। सैफायर फूड्स के साथ विलय से सालाना ₹210-225 करोड़ की बचत होने की उम्मीद है। जोखिमों में पिज्जा हट की कमजोर बिक्री और केएफसी के तेज विस्तार से आपसी प्रतिस्पर्धा शामिल है।
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Read Transcript →Quarter Snapshot
KFC net new stores (Q3)
54
+54 QoQ
KFC added 54 net new stores in Q3 FY26, taking total India KFC count to 788.
Pizza Hut net new stores (Q3)
18
+18 QoQ
Pizza Hut added 18 net new stores in Q3, but management plans zero net additions in CY2026.
KFC average daily sales (ADS)
₹90,000
flat QoQ
KFC ADS remained stable sequentially at ₹90,000 in Q3 FY26.
Total store count
2,279
+109 QoQ
Total store count reached 2,279 as of Dec 2025, including 1,174 KFC and 648 Pizza Hut.
What Changed vs Last Quarter
NEW
Pizza Hut net store additions: zero in CY2026
Management plans no net new Pizza Hut stores in calendar 2026, focusing on shutting loss-making stores and maintaining store count broadly at Dec 2025 levels.
NEW
KFC store additions: 110-120 per year
Devyani plans to add 110-120 KFC stores annually, consistent with past guidance, post-merger.
NEW
Merger synergies: ₹210-225 crore annually
Estimated annual merger synergies from the Sapphire Foods merger are ₹210-225 crore, expected to be realized post-merger completion.
NEW
Corporate G&A: ~5% of revenue
Management guided corporate G&A at approximately 5% of revenue for FY27, excluding one-time items.
DROPPED
Skygate brand contribution breakeven by March 2026
Management reiterated achieving brand contribution breakeven for Skygate by end of FY26, with steady progress reported.
DROPPED
KFC store additions: 100-110 net new stores in FY26
KFC India on track to open 100-110 net new stores in FY26; 30 added in Q2.
DROPPED
Thailand KFC store additions: 20-21 stores in FY26
International business to add 20-21 KFC stores in Thailand during FY26.
DROPPED
Franchise and own brands: ~100 net new stores in FY26 with ~₹50 crore capex
Franchise and own brands (including Biryani by Kilo, Wango) to add ~100 net stores in FY26 with capex of about ₹50 crore.
NEW RISK
Pizza Hut turnaround uncertainty
Pizza Hut continues to face negative SSSG and management has not provided a clear timeline for improvement, with store closures expected to take a couple of years.
NEW RISK
Cannibalization from rapid KFC expansion
Analyst raised concern that rapid KFC store additions (3-4x base in 5 years) may be cannibalizing same-store sales; management acknowledged the issue but did not commit to slowing expansion.
NEW RISK
Merger execution and integration risks
The proposed merger with Sapphire Foods is subject to regulatory approvals (CCI, exchanges) and integration complexities, which could delay synergies.
NEW RISK
Dependence on Yum Brands for technology and supply chain
Management noted that technology and supply chain are currently managed by Yum, and transition post-merger may take time, limiting near-term margin improvement.
RISK GONE
Sustained weak consumption demand
Management noted demand environment remains weak; consumers are value-conscious and promotional intensity is required to drive transactions.
RISK GONE
Yum Brands' potential Pizza Hut franchise rationalization
Analyst raised Yum's global commentary on Pizza Hut franchise rationalization; management stated agreements are protected but uncertainty remains.
RISK GONE
Skygate integration and margin dilution
Skygate consolidation continues to drag brand contribution margins; breakeven target by March 2026 may be delayed if turnaround stalls.
RISK GONE
Negative same-store sales in KFC and Thailand
KFC India same-store sales were negative mid-single digits; Thailand also reported negative SSSG, indicating underlying weakness.
Fast read
Guidance and risk preview
Management plans no net new Pizza Hut stores in calendar 2026, focusing on shutting loss-making stores and maintaining store count broadly at Dec 2...
Pizza Hut continues to face negative SSSG and management has not provided a clear timeline for improvement, with store closures expected to take a...
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