Devyani International Q1FY27: EBITDA ₹255 Cr, Revenue +16.5%

Strong start to FY27 for the QSR operator

Devyani International Limited (DIL), one of India’s largest quick service restaurant (QSR) operators, reported a strong June-quarter performance for FY27. Consolidated revenue increased 16.5% year-on-year to ₹1,580.5 crore (also stated as ₹1,581 crore in the earnings call). The quarter was also marked by improved profitability, with profit after tax rising to its highest level in eight quarters. Management said most of its brand portfolio posted positive same-store sales growth (SSSG), suggesting demand held up despite cost pressures referenced in the coverage.

Revenue growth and what it signals

The company’s topline growth of 16.5% was presented as broad-based across its restaurant portfolio. In the earnings call narrative, DIL described the business as being on a “turnaround and growth track” while highlighting continued operational improvements. The quarter’s revenue figure was communicated in multiple places as ₹1,580.5 crore to ₹1,581 crore, indicating a consistent range for reported sales. Investors typically track revenue growth in QSRs to judge the combined effect of store additions, price moves, and same-store momentum. In DIL’s case, positive SSSG across several brands supported the growth narrative.

Margin and EBITDA disclosures: two figures in circulation

Alongside the results, DIL’s quarterly performance was described using two EBITDA references in the provided material. One disclosure highlighted a record quarterly EBITDA of ₹255 crore with an EBITDA margin of 16.1%, described as the highest-ever. Separately, the earnings call transcript referenced operating EBITDA of ₹151 crore, up 38% year-on-year, with an EBITDA margin of 9.6%. The same call also noted gross margin at 69.1%, improving by 0.9 percentage points year-on-year, and brand contribution at 14.2%.

Because both sets of numbers appear in the supplied text, readers should note the different terminology used (EBITDA vs operating EBITDA) when comparing margins. The company also reported that consolidated brand contribution was ₹224 crore, nearly 26% higher year-on-year.

Profit rises sharply in Q1FY27

Profitability improved significantly during the quarter. Profit before tax (PBT) was stated at ₹22.9 crore, described as more than six times higher year-on-year. Profit after tax (PAT) was ₹17.10 crore, compared with ₹2.22 crore in the April-June quarter of FY26, according to the regulatory filing referenced in the material.

The text also cited PAT of ₹171 million and PBT of ₹229 million, which aligns with the ₹17.10 crore and ₹22.9 crore figures when converted into crore terms. Total expenses were reported at ₹1,576.85 crore, up 15.31% year-on-year in Q1FY27, indicating that cost growth remained close to revenue growth during the quarter.

Same-store sales growth across key brands

DIL’s management highlighted positive same-store sales growth across most of its brand portfolio. KFC posted SSSG of 3.3% and was described as continuing to deliver double-digit sales growth. Pizza Hut recorded SSSG of 2.2%.

Among other brands, Costa Coffee was cited as delivering the strongest SSSG at 10.2%. Biryani by Kilo (BBK) recorded SSSG of 7.2%, while Vaango was at 7.1%. These figures matter because SSSG is often used to gauge whether growth is being driven by demand at existing stores rather than only by adding new outlets.

Brand-wise and international revenue highlights

The earnings call summary included several brand and segment revenue numbers. KFC revenue was reported at ₹684 crore, nearly 12% higher year-on-year. Pizza Hut revenue was reported at ₹184 crore.

International business revenue was reported at ₹523 crore, described as over 20% year-on-year growth. While the text does not provide a country or region breakdown, the international segment’s growth rate was presented as higher than the overall consolidated revenue growth, a detail that investors often track for diversification and scale.

Store network expansion and operating focus

DIL reported an expanded store network of 2,255 outlets. For QSR operators, store count growth is a key driver of topline expansion, but it also brings execution and cost challenges across staffing, rentals, supply chain, and store-level productivity.

Management stated it remained focused on “sustainable profitable growth” under its DIL 2.0 strategy, while the coverage also referred to inflationary pressures. The quarter’s improvement in reported margins and profits, alongside expense growth of 15.31%, was positioned as evidence of operating leverage and tighter cost management.

Sapphire Foods merger: approvals and next steps

The material also stated that DIL remains on track with its proposed merger with Sapphire Foods. It added that approvals have already been received from NSE and BSE, suggesting the process is progressing through the required exchange steps. The text does not provide additional timelines or remaining regulatory actions, but the mention indicates the merger remains a live corporate development alongside quarterly execution.

Q1FY27 earnings call details and participants

Devyani International hosted its Q1 FY27 earnings call on July 29, 2026. The call was scheduled at 2:30 PM IST, and the transcript also references a time of 09:00 AM GMT for the same date.

The call participants listed in the transcript included Ravi Jaipuria (Non-Executive Chairman), Raj Gandhi (Non-Executive Director), Manish Dawar (President and Group CEO), and Anupam Kumar (CFO), with Anup Pujari of CDR India moderating. The company also shared an audio recording link in its disclosure.

Market reaction mentioned in the coverage

One section of the provided material stated the stock rose 4.2% to 118.50 following the results. The same coverage noted that the company did not provide reported EPS or “earnings-vs-forecast” revenue figures in the referenced dataset, limiting the ability to compute a surprise figure from that source.

For investors, the key near-term focus remains on whether SSSG stays positive across brands, whether margin improvement can be sustained, and how the integration roadmap for the Sapphire Foods merger develops, based on future filings and updates.

Key Q1FY27 numbers at a glance

Conclusion

Devyani International’s Q1FY27 results combined 16.5% revenue growth with a sharp improvement in profit, supported by positive same-store sales growth across multiple brands. The company’s communications also highlighted record EBITDA figures, while the earnings call referenced operating EBITDA and margin improvement metrics. With the Sapphire Foods merger stated to be progressing with NSE and BSE approvals in place, the next updates are likely to come through subsequent regulatory filings and management commentary in upcoming quarters.