Devyani International Shares Surge 7%, Sapphire Foods Falls 3% On Merger Plans — Details Inside

Shares of Devyani International Ltd. surged by 7.03% on Friday, while Sapphire Foods share price dropped by 3%, after the the companies announced merger plans, bringing the franchise operations of brands—KFC, Taco Bell, Pizza Hut and Coasta Coffee—under one roof.

According to the merger agreement, 177 equity shares of DIL will be issued for every 100 equity shares of SFIL.

Devyani International and Sapphire Foods are franchisees of Yum! Brands—the US-based restaurant brands operator and the subsidiary of PepsiCo. The merger will combine Devyani's larger business with Sapphire Foods' focus on key brands.

The proposed merger is expected to have synergy benefits, such as the formation of one of the largest QSR platforms in India, with enhanced scale and national footprint, excluding captive markets. It is also expected to unlock growth with a unified brand strategy for both KFC and Pizza Hut.

Last year, DIL acquired Sky Gate Hospitality, which owns brands such as Biryani By Kilo and Goila Butter Chicken. DIL is the largest franchisee for Yum Brands' QSR chains - KFC and Pizza Hut in India. In addition, DIL is the sole franchisee for Costa Coffee, Tea Live, New York Fries and Sanook Kitchen in India. It also owns the South Indian vegetarian food QSR chain Vaango. It operates stores across more than 280 cities in India, Nigeria, Nepal and Thailand, as of Sept. 30, 2025.

The scrip rose as much as 7.09% to Rs 157.89 apiece minutes after the markets opened on Friday. This compares to a 0.20% advance in the NSE Nifty 50 Index.

Total traded volume so far in the day stood at 2.36 times its 30-day average. The relative strength index was at 79.61.

On the other hand, Sapphire Food, the scrip fell as much as 3.44% to Rs 253.65 apiece minutes after the markets opened on Friday. This compares to a 0.20% advance in the NSE Nifty 50 Index.

Total traded volume so far in the day stood at 0.57 times its 30-day average. The relative strength index was at 64.34.

Out of 25 analysts tracking the company, 16 maintain a 'buy' rating, five recommend a 'hold,' and four suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target of Rs 328.83 implies an upside of 26.8%.