Devyani International’s Q1FY27 profit nearly quadruples as margin doubles

KFC, Pizza Hut and Costa Coffee operator Devyani International reported Q1FY27 revenue of ₹1,581 crore, up 16.5% year on year. Net profit rose to ₹14.6 crore from ₹3.7 crore, while EBITDA margin expanded to 1.8% from 0.9%.

— Source publishedWed, 29 Jul, 2026, 12:19 IST·First seen Wed, 29 Jul, 2026, 13:23 IST·Source NDTV Profit

What happened

Devyani International reported sharply improved Q1FY27 earnings, with net profit nearly quadrupling to Rs 14.6 crore. Revenue rose 16.5% to Rs 1,581 crore,

Key facts

  • Q1FY27 net profit Rs 14.6 crore, versus Rs 3.7 crore in Q1FY26
  • Revenue Rs 1,581 crore, up 16.5% YoY from Rs 1,357 crore
  • EBITDA Rs 29 crore, versus Rs 12 crore
  • EBITDA margin 1.8%, versus 0.9%
  • Other income Rs 19.2 crore, versus Rs 13.5 crore
  • Share price rose as much as 9.1% to Rs 124

Why this matters

Devyani’s improving earnings leverage strengthens its position to pursue selective franchise, brand-extension or market-expansion opportunities without sacrificing balance-sheet discipline.

What to watch

  • Like-for-like sales growth by brand, especially Pizza Hut versus KFC and Costa.
  • Sequential EBITDA margin movement and whether expansion is driven by gross-margin improvement or one-off cost controls.
  • Net store additions, closures and management commentary on store payback periods.
  • Delivery-platform mix, promotional intensity and any change in commission or aggregator economics.
  • Food, packaging and employee-cost inflation relative to menu-price increases.
  • Cash generation, leverage and capex intensity as the store network expands.
  • Whether net profit remains positive after finance costs, depreciation and exceptional items.
  • Prioritize store openings in KFC and Costa formats where unit economics and payback are strongest.
  • Tighten Pizza Hut store-level profitability through menu engineering, delivery mix management, selective closures or refranchising-style asset optimization where available.
  • Use the improved earnings print to reinforce the turnaround narrative, but keep capital allocation disciplined because the 1.8% EBITDA margin remains thin.
  • Push loyalty, app ordering and bundled offers to improve frequency without relying on broad-based discounting.
  • Seek procurement, staffing and supply-chain efficiencies that convert sales growth into more durable restaurant-level margins.