Devyani Q1 revenue rises 16.5% as KFC, Costa and BBK post positive same-store sales

Devyani International reported Q1 FY27 revenue of ₹1,581 crore and net profit of ₹14.6 crore, with same-store sales growth across KFC, Costa Coffee, Biryani By Kilo and Vaango. The operator has 2,255 stores and is targeting Sapphire Foods merger completion by FY27-end.

— Source publishedThu, 30 Jul, 2026, 07:26 IST·First seen Thu, 30 Jul, 2026, 07:47 IST·Source NDTV Profit

What happened

Devyani International reported higher Q1 FY27 revenue, profit and EBITDA, supported by same-store sales growth at KFC, Costa Coffee and other brands. It

Key facts

  • Q1 FY27 net profit: Rs 14.6 crore, versus Rs 3.7 crore in Q1 FY26
  • Revenue: Rs 1,581 crore, up 16.5% YoY
  • EBITDA: Rs 29 crore, versus Rs 12 crore
  • EBITDA margin: 1.8%, versus 0.9%
  • KFC same-store sales growth: 3.3%
  • Costa Coffee same-store sales growth: 10.2%
  • Biryani By Kilo same-store sales growth: 7.2%
  • Vaango same-store sales growth: 7.1%
  • Store network: 2,255 stores
  • Macquarie target price: Rs 130

Why this matters

The targeted FY27-end Sapphire Foods merger would accelerate QSR consolidation in India, creating a larger multi-brand platform with greater purchasing, development and market-entry leverage.

What to watch

  • Quarterly same-store sales growth by KFC, Costa, Biryani By Kilo and Vaango, especially whether it remains positive without heavier promotions.
  • Restaurant-level margins, employee costs, food and packaging inflation, and delivery-platform commission trends.
  • Net store additions, closures and the proportion of mature versus newly opened outlets.
  • Progress on Sapphire Foods merger approvals, announced synergy targets, transaction structure and expected completion timing.
  • Consumer discretionary spending trends in urban India, including dine-in traffic versus delivery mix.
  • Whether net profit continues to rise faster than revenue, signaling operating leverage rather than only top-line expansion.
  • Prioritize KFC and Costa outlets in proven high-throughput catchments while moderating openings in lower-return micro-markets.
  • Use the return to profitability to fund digital ordering, loyalty and delivery-led repeat purchases rather than broad-based discounting.
  • Advance Sapphire Foods merger approvals, integration planning and procurement harmonization ahead of the FY27-end target.
  • Expand Biryani By Kilo and Vaango selectively as higher-frequency, local-cuisine formats that can diversify reliance on global QSR brands.
  • Seek food-cost, supply-chain and shared-services savings that can protect margins if consumer demand softens.