Devyani (DEVYANI) Q4 24/25 earnings summary

Executive summary

• FY2025 consolidated revenue grew 39.2% year-over-year to INR 4,951 crore, driven by the KFC Thailand acquisition and continued store expansion in India.

• 257 new stores were added, bringing the total to 2,039 as of March 31, 2025, with disciplined execution across all brands.

• The company entered new food categories via the acquisition of Sky Gate Hospitality (Biryani by Kilo, Goila Butter Chicken, The Bhojan) and tied up with international brands like New York Fries, Tealive, and Sanook Kitchen.

• Outperformed the organized QSR market in both revenue and store growth, achieving a 44.5% revenue CAGR over five years versus the industry’s 29.6%.

• EBITDA margin for FY2025 stood at 17.0%, with absolute EBITDA rising 29.1% over FY2024.

Financial highlights

• Consolidated operating revenue for FY2025 was INR 4,951 crore, up 39.2% year-over-year; Indian business revenue grew 7.5%.

• Q4 FY2025 consolidated revenue was INR 1,213 crore, up 15.8% year-over-year; Indian business Q4 revenue was INR 801 crore, up 6.6%.

• FY2025 EBITDA (post-index) was INR 842 crore (17% margin), down from 18.3% in FY2024; Q4 FY2025 EBITDA was INR 200.8 crore, up 15.5%.

• FY2025 profit before tax was INR 12.8 crore, a 248% increase over FY2024; net loss after tax was INR -6.9 crore, compared to INR -9.7 crore in FY2024.

• Gross margin for FY2025 was 68.9%, down from 70.3% in FY2024, mainly due to input inflation and higher deal composition.

Outlook and guidance

• Management expects sequential improvement in KFC's ADS and SSSG as key impacted states recover.

• No price increases planned for KFC due to current consumption slowdown; input costs expected to stabilize.

• Aggressive rollout of value layers and new brands to drive footfalls and future growth.

• KFC store expansion target for FY2026 is 110-120 new stores, with Pizza Hut's plan under review.

• Focus remains on disciplined execution, operational excellence, and leveraging new categories for growth.