Devyani International Share Price Outlook After Q1 FY27 Earnings And Sapphire Foods Merger
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Key Takeaways
- Profit surged to Rs 14.6 crore in Q1 FY27, up from Rs 3.7 crore a year ago.
- Revenue rose 16.5% YoY to Rs 1,581 crore as brand momentum broadened.
- KFC, Costa Coffee, Biryani By Kilo and Vaango all posted positive SSSG, with Costa Coffee leading at 10.2%.
- The Sapphire Foods merger remains on track with FY27 completion targeted, as DIL 2.0 drives profitability.
Investors eye the Devyani International Share Price as the company reports a strong June quarter that points to improving demand across KFC, Costa Coffee and its other brands. The company posted a near four-fold jump in net profit to Rs 14.6 crore for Q1 FY27 from Rs 3.7 crore a year ago, with revenue rising 16.5% year-on-year to Rs 1,581 crore. Operating performance improved, with EBITDA rising to Rs 29 crore from Rs 12 crore a year earlier, and EBITDA margin expanding to 1.8% from 0.9%. Other income rose to Rs 19.2 crore from Rs 13.5 crore in the year-ago period. Across brands, KFC posted 3.3% same-store sales growth, Costa Coffee 10.2%, Biryani By Kilo 7.2% and Vaango 7.1%, with Pizza Hut continuing to show sequential improvement. The quarter ended with a network of 2,255 stores and the company remains on track to meet its FY27 store expansion targets. Chairman Ravi Jaipuria noted momentum built in the second half of FY26 carried forward into FY27 as inflation in LPG and wages persisted, while EBITDA reached its highest-ever quarterly level and the focus remained on profitable growth. The proposed merger with Sapphire Foods remains on track after approvals from NSE and BSE, with completion targeted by end-FY27. The new leadership team is in place as Devyani advances its DIL 2.0 transformation strategy.
Devyani International Share Price: Q1 FY27 Earnings And Growth Outlook
The latest numbers strengthen the case for a constructive Devyani International Share Price trajectory, supported by a stronger profit base and improving brand momentum. Net profit rose to Rs 14.6 crore in Q1 FY27 from Rs 3.7 crore a year ago, while revenue rose to Rs 1,581 crore, up 16.5% YoY. EBITDA rose to Rs 29 crore, with EBITDA margin at 1.8% (vs 0.9% in Q1 FY26). Other income rose to Rs 19.2 crore from Rs 13.5 crore. Brand-wise, KFC delivered 3.3% SSSG; Costa Coffee 10.2%; Biryani By Kilo 7.2%; and Vaango 7.1% growth, while Pizza Hut continued to show sequential improvement. The company ended the quarter with 2,255 stores and remains on track to meet its FY27 expansion targets.
Brokerage commentary adds texture: Macquarie said the quarter was largely in line with expectations, but sees a broader pickup in consumer demand as the key catalyst for the stock going forward. Jaipuria noted momentum from FY26's second half carried forward into FY27, even as inflation in LPG and wages persisted. Management emphasizes DIL 2.0 transformation and progress toward the Sapphire Foods merger, which has NSE and BSE approvals and aims for completion by FY27 end. This combination of brand momentum, scale, and a defined integration path provides a supportive backdrop for the Devyani International share price in the quarters ahead.
Brand mix and store expansion underpin the story: 2,255 stores highlight scale and potential for economies of scope across KFC and Costa Coffee. With KFC maintaining double-digit sales growth and Costa Coffee, Biryani By Kilo and Vaango posting healthy numbers, the pie grows in multiple directions. In this context, the Devyani International share price could respond positively to a sustained run of quarterly EBITDA improvements and margin expansion, even as energy and wage inflation remains a headwind.
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Devyani International Revenue And Margin Breakdown For Q1 FY27
Revenue for the quarter rose to Rs 1,581 crore, up 16.5% YoY, with EBITDA of Rs 29 crore and EBITDA margin of 1.8% (up from 0.9% in Q1 FY26). The quarter's EBITDA improvement came despite LPG and wage inflation headwinds; other income rose to Rs 19.2 crore from Rs 13.5 crore. The company also reported 2,255 stores at quarter end and reiterates its FY27 expansion targets.
Brand-wise, KFC posted 3.3% SSSG, Costa Coffee 10.2%, Biryani By Kilo 7.2%, and Vaango 7.1%, while Pizza Hut showed sequential improvement. The brand mix points to a diversified and scalable model across quick-service, coffee and casual dining formats.
| Brand | Same-Store Sales Growth |
|---|---|
| KFC | 3.3% |
| Costa Coffee | 10.2% |
| Biryani By Kilo | 7.2% |
| Vaango | 7.1% |
Given the scale and the multi-brand reach, the growth path remains manageable, with outside macro headwinds recognized.
Sapphire Foods Merger: Approvals, Timeline And Potential Impact
The proposed merger with Sapphire Foods remains on track after approvals from NSE and BSE, with completion targeted by the end of FY27. The transaction is part of Devyani's broader strategy to accelerate profitable growth under DIL 2.0, with the new leadership in place to steer the integration and ensure synergies across KFC, Pizza Hut, Costa Coffee, and other brands.
Sapphire Foods Stock Price Outlook After The Merger News
As the merger progresses, Sapphire Foods stock price implications will depend on regulatory alignment and the speed of integration. The potential for economies of scale and cross-brand synergies could support a favorable re-rating, but execution risk remains a key watchpoint for investors considering the combined entity.
Devyani International Quarterly Results: Brand Wise Performance
In this quarter, Costa Coffee delivered the strongest growth at 10.2% SSSG, while KFC recorded 3.3% SSSG, and Biryani By Kilo and Vaango posted 7.2% and 7.1% respectively. Pizza Hut continued to show sequential improvement, pointing toward a healthier, multi-brand trajectory.
Devyani International Earnings And Profitability Trends
Net profit rose to Rs 14.6 crore in Q1 FY27, up from Rs 3.7 crore a year earlier. Revenue was Rs 1,581 crore, up 16.5% YoY. EBITDA grew to Rs 29 crore with margin of 1.8%, up from 0.9% a year earlier. Other income rose to Rs 19.2 crore from Rs 13.5 crore. LPG and wage inflation remained headwinds, yet the company delivered its highest-ever quarterly EBITDA and maintained focus on profitable growth and the DIL 2.0 strategy. The store count stood at 2,255 at quarter end, reinforcing the scale of Devyani's operations.
Frequently Asked Questions
What were Devyani International's Q1 FY27 results?
Net profit rose to Rs 14.6 crore from Rs 3.7 crore YoY; revenue rose to Rs 1,581 crore; EBITDA was Rs 29 crore with margin of 1.8%; other income rose to Rs 19.2 crore.
Which brands drove the strongest growth in the June quarter?
KFC posted 3.3% same-store sales growth, Costa Coffee 10.2%, Biryani By Kilo 7.2%, and Vaango 7.1%; Pizza Hut continued to show sequential improvement.
What is the status of the Sapphire Foods merger?
The merger remains on track after approvals from NSE and BSE, with completion targeted by the end of FY27.
How many stores does Devyani International operate and what is the expansion plan?
The company ended the quarter with 2,255 stores and remains on track to meet its FY27 expansion targets.
What is DIL 2.0 and how does it relate to margins?
DIL 2.0 is Devyani International's transformation strategy aimed at profitable growth; it contributed to EBITDA margin improvement from 0.9% to 1.8%.
What did Macquarie say about the quarter?
Macquarie said the quarter was largely in line with expectations, with a broader pickup in consumer demand seen as the key catalyst for the stock going forward.
Conclusion
What this means for the retail investor: the June quarter confirms a broader demand recovery across Devyani's multi-brand portfolio, with margin expansion and a disciplined focus on profitable growth. The Sapphire Foods merger adds optionality to the growth story, provided the integration progresses on the expected timeline. A practical next step is to monitor quarterly EBITDA trajectory, same-store sales by brand, and store expansion progress as the FY27 end-game approaches.
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