Devyani International Q4 FY25: Revenue Up 16%, Loss Narrows

What Devyani International reported in Q4 FY25

Devyani International Ltd (DIL), the master franchisee for Yum! Brands in India (KFC, Pizza Hut and Costa Coffee), reported a narrower consolidated net loss for the March quarter (Q4 FY25) even as costs stayed elevated. Revenue from operations rose year-on-year, supported by store additions and contributions from acquired operations. The quarter also reflected margin pressure from input inflation and changes in product mix.

Separately, management commentary for the full year highlighted that FY25 growth was driven by both organic expansion and a strategic acquisition of KFC stores in Thailand. The company added 257 net new stores during FY25, taking total store count to 2,039 as of March 31, 2025 across India, Thailand, Nigeria and Nepal.

Consolidated revenue growth stays strong, QoQ dips

For Q4 FY25, DIL’s consolidated revenue from operations came in at INR 1,212.6 crore, up 15.8% from INR 1,047.1 crore in Q4 FY24. Sequentially, revenue was lower than the INR 1,294.4 crore reported in Q3 FY25, indicating a quarter-on-quarter slowdown.

For the full year FY25, consolidated operating revenue (including Thailand) was INR 4,951.0 crore, up 39.2% from INR 3,556.3 crore in FY24. The company attributed this to the acquisition of KFC stores in Thailand and continued store expansion in India. Management also said the Indian business recorded revenue growth of 7.5% for FY25.

Loss narrows, but profitability signals remain mixed

DIL reported a consolidated net loss of INR 16.76 crore in Q4 FY25, compared with a net loss of INR 48.95 crore in Q4 FY24, according to a regulatory filing referenced by PTI. Another disclosure in the provided information noted a consolidated loss after tax of INR 16.8 crore for the quarter and highlighted that the loss attributable to owners rose to INR 14.74 crore versus INR 7.5 crore a year ago, which pushed consolidated EPS loss to INR 0.12 per share versus INR 0.06.

For FY25, PTI reported that DIL’s consolidated loss narrowed to INR 6.9 crore from INR 9.65 crore in FY24. On profit before tax (PBT), management commentary indicated FY25 consolidated PBT of INR 12.8 crore versus INR 3.7 crore in FY24, a rise of 248%.

Costs and one-off charges weighed on the quarter

Total expenses in Q4 FY25 rose 13.5% year-on-year to INR 1,247.9 crore. The company cited higher costs of key ingredients such as cheese and palm oil and increased employee costs as drivers of operating expense growth.

The company also recorded an impairment charge of INR 13.57 crore in the quarter, with the details not specified in the provided summary. This charge, along with higher operating costs, kept headline profitability under pressure even as revenue improved.

Margin trends: gross margin and brand contribution soften

For FY25, consolidated gross margin was 68.9% versus 70.3% in FY24. For Q4 FY25, gross margin was 68.5% versus 68.7% in Q3 FY25. Management attributed the marginal drop mainly to cooking oil and coffee bean prices, along with a higher deal composition.

Brand contribution for FY25 was reported at 14.2% versus 15.5% in FY24, pointing to a softer contribution despite strong topline growth. The update also noted that some operations remained loss-making, with management expressing an intent to turn them around over the next year. It also clarified that while PAT was not positive, the business was positive at a brand contribution and EBITDA level.

EBITDA: two reported sets of numbers, with FY25 at 17% margin

On a reported (post-IndAS) basis for FY25, DIL’s EBITDA margin stood at 17%, with EBITDA of INR 842 crore versus EBITDA margin of 18.3% in FY24. Management commentary stated absolute EBITDA increased 29.1% over FY24.

On a pre-IndAS basis, consolidated operating EBITDA (including Thailand) was INR 494 crore in FY25 versus INR 381 crore in FY24. Pre-IndAS margins were 10.0% in FY25 versus 10.7% in FY24.

For Q4 FY25, one set of figures in the provided material cited EBITDA of INR 187 crore, up 43% year-on-year, with EBITDA margin of 14.2% versus 17.8% in the year-ago quarter. Another set of audited-result-linked figures cited Q4 reported EBITDA of INR 200.8 crore with a margin of 16.6%.

Brand and geography highlights: KFC, Pizza Hut, and international operations

Management’s brand-level disclosures included KFC revenue for FY25 at INR 2,179 crore, up 6.6% versus FY24. For KFC, FY25 gross margin was reported at 68.9%, and brand contribution margin at 17.4% (and 16.2% for Q4).

For Pizza Hut India, the information provided cited FY25 revenue of INR 732 crore versus INR 709 crore in FY24, and Q4 revenue of INR 175 crore versus INR 162 crore in Q4 FY24. Same-store sales growth (SSSG) was described as mixed: +1% for Pizza Hut and -6.1% for KFC year-on-year, with KFC improving from -7.1% in the previous year.

Internationally, investor presentation details in the provided text indicated Q4 FY25 revenue of INR 443.6 crore and reported EBITDA of INR 60.3 crore for DIL’s international operations.

Strategic moves: Thailand KFC acquisition and Sky Gate Hospitality deal

DIL’s FY25 revenue jump was primarily linked to the acquisition of KFC stores in Thailand, which management described as a key driver alongside store expansion in India. The quarter also included an announced strategic acquisition of Sky Gate Hospitality (Biryani By Kilo), as referenced in the provided material.

These actions indicate DIL is balancing two priorities: scaling its core Yum! Brands portfolio while using acquisitions to add new revenue streams and widen its presence beyond India.

Market reaction and what investors tracked

On the market day referenced in the provided coverage, Devyani International’s stock closed at INR 179.85 on the BSE, down 0.47% from the previous close. Another reference in the same set of reports said the stock closed down 0.28% on the NSE, while the Nifty 50 ended higher.

For investors, the quarter’s headline improvement was the sharp year-on-year reduction in loss alongside double-digit revenue growth. At the same time, the disclosures kept attention on margins, input-cost sensitivity, and the impact of impairment charges.

Key numbers at a glance

Conclusion

Devyani International ended FY25 with strong consolidated revenue growth to INR 4,951 crore, helped by its Thailand KFC acquisition and ongoing store additions. In Q4 FY25, revenue rose 15.8% year-on-year to INR 1,212.6 crore and losses narrowed sharply from the year-ago quarter, although margins softened and costs remained a key factor.

The next set of updates investors are likely to track, based on the disclosures provided, will include progress on margin recovery, the impact of input costs, and integration steps tied to Thailand operations and the Sky Gate Hospitality acquisition.