Devyani International Limited Earnings Summary — Q4 FY2026
Devyani International Reports Narrowing Sequential Losses Despite Stagnant Revenue Growth in Q4
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue grew 10.0% sequentially in Q1 FY2027.
- Revenue of ₹1,581 Cr is 16.5% higher year-on-year.
- Revenue has compounded at 20.1% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit of ₹15 Cr is 297.0% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Operating margin stands at 16.1% in Q1 FY2027.
- Operating margin expanded by 91 bps year-on-year.
- Over the last two years operating margin has contracted by 158 bps.
- PBT margin is 1.4%.
- Expense growth of 15.2% remained below revenue growth of 16.5%.
- Operating profit of ₹254 Cr is 23.5% higher year-on-year.
- Operating leverage continues to improve.
- 6 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 73/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 1,581 | 1,437 | 1,441 | 1,377 | 1,357 | 1,213 | 1,294 | 1,222 | 1,222 | 1,047 |
| Expenses | Improving | 1,326 | 1,217 | 1,210 | 1,185 | 1,151 | 1,027 | 1,081 | 1,026 | 1,006 | 917 |
| Operating Profit | Improving | 254 | 220 | 231 | 192 | 206 | 186 | 213 | 196 | 216 | 130 |
| Operating Margin | Improving | 16.1% | 15.3% | 16.0% | 13.9% | 15.2% | 15.3% | 16.5% | 16.0% | 17.7% | 12.4% |
| Other Income | Volatile | 19 | 18 | -10 | 3 | 13 | 13 | 9 | 5 | 10 | 14 |
| Interest | Stable | 70 | 70 | 70 | 69 | 67 | 70 | 67 | 65 | 63 | 57 |
| Depreciation | Improving | 180 | 182 | 167 | 155 | 150 | 152 | 147 | 139 | 132 | 126 |
| Profit Before Tax | Volatile | 23 | -15 | -16 | -29 | 3 | -22 | 9 | -4 | 31 | -38 |
| Tax | Volatile | 6 | -5 | -5 | -5 | 1 | -6 | 16 | 1 | 8 | 11 |
| Net Profit | Volatile | 15 | -10 | -10 | -22 | 4 | -15 | -0 | 0 | 30 | -7 |
| Net Margin | Volatile | 0.9% | -0.7% | -0.7% | -1.6% | 0.3% | -1.2% | -0.0% | 0.0% | 2.5% | -0.7% |
Key Takeaways
- Revenue growth has stalled sequentially at INR 1,436.86 Cr, declining 0.28% compared to Dec 2025.
- The company continues to report net losses, though the loss of INR 9.84 Cr is an improvement over the INR 16.77 Cr loss in Mar 2025.
- Depreciation costs have risen significantly to INR 182.48 Cr, up 20% compared to the prior year period, reflecting aggressive store rollouts.
- Interest expenses remain high at INR 70.10 Cr, straining the bottom line and contributing to a pre-tax loss of INR 14.58 Cr.
- Operating Profit Margins (OPM) remain under pressure, hovering at 15.3% as expenses parallel revenue growth.
- Finance costs and depreciation together (approx. INR 252 Cr) are now exceeding the total Operating Profit (INR 220 Cr).
Management Guidance
Management focus remains on aggressive scale-up and market penetration through its KFC and Pizza Hut brands, prioritizing growth over immediate unit-level profitability.
Sentiment Shift
Stable
While losses continue, the top-line growth YoY remains healthy, and the sequential improvement in net profit suggests a slight moderation in the downward trajectory.
Outlook
The outlook is cautious but growth-oriented. The company is in a heavy investment cycle with high fixed costs (depreciation/interest) that require significantly higher throughput to reach sustainable profitability.
From the Annual Report (Key Quotes)
“Devyani International Limited presents a paradox of aggressive scale-up versus fragile profitability.”
“Inconsistent margins and a capital-intensive model leave little room for earnings safety.”
“Aggressive growth strategy has led to a stretched balance sheet and a focus on volume over unit economics.”
Official Quarterly Documents
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This summary is AI-generated from Devyani International Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.