Devyani International Q4 Review: Dolat Capital Reiterates 'Sell' On Below Estimate Results

Though base for Pizza Hut and KFC would become favorable in the ensuing quarters, overall slowdown is expected to pressurize Devyani International's profitability, adds Dolat Capital.

Dolat Capital

26 May 2025, 10:16 AM IST i

<div class="paragraphs"><p>Devyani International's reported 15.8% revenue growth including Thailand acquisition (ex-Thailand up 6.6% YoY) led by revenue growth of 3.4/8.2/16.0/23.9% across KFC/ Pizza Hut/ Costa Coffee/ Vaango. </p><p>(Source: Devyani International Ltd. website)</p></div>

Devyani International's reported 15.8% revenue growth including Thailand acquisition (ex-Thailand up 6.6% YoY) led by revenue growth of 3.4/8.2/16.0/23.9% across KFC/ Pizza Hut/ Costa Coffee/ Vaango.

(Source: Devyani International Ltd. website)

A significant drop in brand contribution margins was primarily due to same-store sales growth decline and incremental investment in brand building during the quarter. Going ahead, Dolat Capital believes that the increase in competition and Pizza Hut’s premium positioning would remain a hurdle for its profitability revamp. Nevertheless, in the long run, believes that KFC's brand contribution is likely to increase due to lower competit...