Devyani International's Profit Plunge: Analyzing Q1 FY26 Earnings

Devyani International Ltd faced a significant profit decline of over 90% in Q1 FY26, despite revenue growth. The company expanded with 106 new stores and saw gains in international business. However, increased total expenses and marketing investments impacted its profit margins.

Devyani International Ltd, a leading franchisee of Yum Brands in India, reported a steep decline of over 90% in its net profit for the first quarter of FY26, settling at Rs 2.22 crore. This downturn contrasts sharply with the Rs 22.43 crore profit achieved in the same period last year.

Despite the profit plunge, the company experienced an 11.05% growth in revenue, reaching Rs 1,356.96 crore, primarily driven by robust performances from KFC, Costa Coffee, and the Food Court business. Additionally, Devyani International expanded its footprint by adding 106 new stores in the quarter.

Total expenses for the quarter saw a rise of 13.82%, impacting EBITDA margins which settled at 15.1%. The company cited investments in marketing and a lower average daily sale as factors affecting the margins. Shares of Devyani International Ltd closed 3.22% higher at Rs 158.50 on the BSE.

(With inputs from agencies.)