Devyani International Q4 Results: KFC Operator's Loss Narrows

Devyani International Ltd., India's largest franchisee for Yum! Brands including Pizza Hut, KFC, and Costa Coffee, announced on Friday a significant narrowing of its net loss to Rs 16.76 crore for the March quarter of fiscal year 2025.

This marks a substantial improvement from the net loss of Rs 48.95 crore reported in the corresponding January-March period of the previous year.

The quick service restaurant operator also reported a 15.8% uptick in revenue from operations, reaching Rs 1,212.6 crore in the March quarter, up from Rs 1,047.07 crore in the same quarter last year.

Total expenses for the period rose by 13.5% to Rs 1,247.90 crore. DIL's total income, which incorporates other income, stood at Rs 1,225.77 crore, reflecting a 15.5% year-on-year increase.

In financial year 2025, Devyani International added 257 new stores, bringing its total store count to 2,039 as of March 31, 2025, across its markets in India, Thailand, Nigeria, and Nepal. Beyond its franchise operations for Yum! Brands, DIL also manages Vaango, a South Indian vegetarian food QSR chain.

For the entire financial year ending March 2025, DIL's consolidated net loss narrowed to Rs 6.9 crore, marking an improvement from Rs 9.65 crore in the preceding year. DIL's total consolidated income surged by 39% to Rs 4,988.04 crore.

Non-executive chairperson Ravi Jaipuria attributed this strong performance primarily to "the strategic acquisition of KFC stores in Thailand and supported by ongoing store expansion in India".

Commenting on the recently announced acquisition of Sky Gate Hospitality, the parent company of the "Biryani By Kilo" brand, Jaipuria stated that this move marks DIL's entry into another high-potential food category. He added, "This acquisition further strengthens our overall brand portfolio and deepens our well laid-out strategy. During the year, we also tied up with three international brands -- New York Fries, Tealive, and Sanook Kitchen."

DIL recently opened its inaugural New York Fries store in Mumbai, marking the commencement of its expansion with these new brands. Jaipuria indicated that several more stores are planned for the current year, emphasizing that the company's "store expansion strategy has been instrumental in driving growth and reinforcing our market leadership."

Shares of Devyani International closed at Rs 179.85 on the NSE on Friday, down 0.28%. This compares to a 0.99% advance in the benchmark index Nifty 50 at closing on Friday.

(With inputs from PTI)