Devyani International Q1 FY26 Earnings Results

Devyani International Limited (DIL) is the largest franchisee of Yum Brands in India and among the largest operators of quick service restaurant (QSR) chains. The company is also a franchisee for the Costa Coffee brand and its stores in India. Presenting below its Q1 FY26 Earnings Results.

Q1 FY26 Earnings Results:

Revenue: ₹1,357 crore, up 11.05% year-on-year YoY from ₹1,222 crore
Total Expenses: ₹1,368 crore, up 13.84% YoY from ₹1,201 crore
Consolidated Net Profit PAT: ₹2.23 crore, down 90.06% YoY from ₹22.43 crore
Earnings Per Share EPS: ₹0.03, down 88.00% YoY from ₹0.25

Operational & Strategic Update:

Revenue Growth: Revenue increased over 11%, driven by expansion in store base and same-store sales growth across brands
Expense Trends: Expenses rose nearly 14%, outpacing revenue growth due to higher input costs, elevated operating expenses, and inflationary pressures
Profitability Impact: Net profit plummeted by over 90%, significantly impacted by rising costs and margin pressures despite revenue growth
Business Focus: Operations include quick service restaurants and cafes, with heightened focus on customer experience and new store openings
Strategic Initiatives: The company is working on cost control initiatives, menu innovations, and digital engagement strategies to improve profitability

Corporate Developments in Q1 FY26:

Devyani International faced significant profit decline caused by cost inflation and operational challenges despite revenue growth and expanding footprint.

Looking Ahead:

The company plans to enhance operational efficiencies, optimize costs, and leverage brand strength to restore margin growth and profitability in FY26 and beyond.

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