Devyani (DEVYANI) Q3 24/25 earnings summary

Executive summary

• Achieved a milestone of over 2,032 stores as of December 31, 2024, surpassing expansion guidance with 111 net new stores added in Q3 FY25, strengthening market presence in the QSR sector.

• Board approved unaudited standalone and consolidated financial results for the quarter and nine months ended December 31, 2024.

• KFC awarded Most Admired Retailer of the Year for Market Expansion.

• Despite subdued consumer sentiment during the festive season, metros and large cities showed recovery, aided by value menu offerings and strategic promotions.

• Appointment of Mr. Deepak Kumar as Head of Finance, effective February 11, 2025.

Financial highlights

• Q3 FY25 consolidated revenue reached INR 12,945 million (₹1,294 crore), up 54% year-over-year, with Indian business growing 9.6% YoY due to store expansion.

• Gross margin for the quarter was 68.7%, down 60 bps sequentially due to food inflation in core brands.

• Consolidated reported EBITDA was INR 2,192 million (16.9% margin), up 10.3% QoQ.

• Consolidated net loss for Q3 FY25 was INR 76.46 million, compared to a net profit of INR 50.70 million in Q3 FY24.

• Profit before tax was INR 85 million in Q3 FY25, reversing a loss of INR 39 million in Q2 FY25.

Outlook and guidance

• Store expansion strategy to continue, balancing growth and store-level performance, with guidance met ahead of schedule.

• Expansion in Pizza Hut will be moderated, with continued bullishness on KFC and other brands.

• Margin improvement expected in Pizza Hut and KFC from Q4 onwards due to marketing and cost optimization.

• Thailand business aims for 20%-25% store growth and 3%-4% SSSG, targeting 11%-12% revenue growth.