Devyani International Limited (DEVYANI.NS) Bundle
Snapshot of Devyani's fiscal shift: consolidated revenue jumped to ₹49.5 billion in FY25, up 39.2% YoY, with Q4 revenue at ₹12.1 billion (+15.8% YoY) aided by 257 net new stores and KFC acquisitions in Thailand even as KFC same-store sales improved to -6.1% from -7.1%; profitability shows EBITDA of ₹8.4 billion (17.0% margin) while PBT surged 248% to ₹12.8 crore despite a smaller net loss of ₹69 million (better than ₹97 million); balance sheet moves include long-term debt down to ₹6.7 billion (-7.6%), current liabilities rising to ₹11.1 billion (+18.9%) and total liabilities at ₹52.8 billion with net worth at ₹10.9 billion (+5.3%); liquidity signals are mixed-cash from operations up 51.9% to ₹9 billion but net cash flow only ₹137 million-and valuation/market view shows a ₹189.33 12‑month target (≈14.36% upside), a market cap of ₹21,674.19 crore, a 52‑week band of ₹130.31-₹209.75 and a consensus 'Moderate Buy' (2 buys, 1 hold); examine the risks from international currency exposure, supply‑chain and competitive pressures, and the growth levers from Sky Gate, new international partnerships and planned brand rollouts-read on for the detailed breakdown.
Devyani International Limited (DEVYANI.NS) - Revenue Analysis
Devyani International reported a sharp acceleration in top-line performance in FY25, driven by network expansion and strategic acquisitions alongside mixed same-store performance at legacy brands.
- Consolidated revenue for FY25: ₹49.5 billion (up 39.2% from ₹35.6 billion in FY24).
- Q4 FY25 revenue: ₹12.1 billion (up 15.8% from ₹10.5 billion in Q4 FY24).
- Net new stores added in FY25: 257, a primary contributor to the revenue surge.
- Major growth drivers: acquisition of KFC stores in Thailand and continued expansion in India.
- KFC same-store sales growth (SSSG): -6.1% YoY in FY25, improved from -7.1% the prior year.
- Revenue-per-new-store contribution (incremental revenue / net new stores): approx. ₹54.09 million per store (₹13.9 billion incremental revenue ÷ 257 stores).
| Metric | FY24 | FY25 | YoY Change |
|---|---|---|---|
| Consolidated Revenue (₹ bn) | 35.6 | 49.5 | +39.2% |
| Q4 Revenue (₹ bn) | 10.5 (Q4 FY24) | 12.1 (Q4 FY25) | +15.8% |
| Net New Stores (FY) | - | 257 | - |
| SSSG - KFC | -7.1% | -6.1% | Improvement of 100 bps |
| Incremental Revenue (FY25 vs FY24) (₹ bn) | - | 13.9 | - |
| Incremental Revenue per Net New Store (₹ mn) | - | ~54.09 | - |
Key operational and geographic notes:
- Acquisition-led growth in Thailand (KFC) contributed immediate scale and revenue recognition in FY25.
- India expansion added density and improved overall revenue-per-store utilization despite negative SSSG at KFC.
- Improving SSSG trajectory (from -7.1% to -6.1%) suggests stabilization in consumer demand and operational recovery at KFC.
For background on the company's strategy, ownership and how it generates revenue see: Devyani International Limited: History, Ownership, Mission, How It Works & Makes Money
Devyani International Limited (DEVYANI.NS) - Profitability Metrics
Devyani International reported mixed profitability signals for FY25: operating profitability remained solid while bottom-line performance stayed negative due to higher non-operating charges. EBITDA was ₹8.4 billion (17.0% margin) in FY25, down from an 18.3% margin in FY24. Gross profit margin improved to 16.4% from 15.3%, indicating better control of cost of goods sold, but net profitability remained in loss territory at ₹69 million in FY25 (improved from a loss of ₹97 million in FY24). Profit Before Tax (PBT) rose substantially - up 248% to ₹12.8 crore in FY25 from ₹3.7 crore in FY24 - as certain operating gains were partly offset by higher depreciation and interest costs.- EBITDA (FY25): ₹8.4 billion; EBITDA margin: 17.0% (FY24: 18.3%).
- Gross profit margin (FY25): 16.4% (FY24: 15.3%).
- PBT (FY25): ₹12.8 crore, +248% vs FY24 (₹3.7 crore).
- Net profit (FY25): loss of ₹69 million vs loss of ₹97 million in FY24.
- Main drivers: improved gross margins and operational cost control; offset by higher depreciation and interest expense leading to negative net margins.
| Metric | FY24 | FY25 | Change |
|---|---|---|---|
| EBITDA (₹) | - | 8,400,000,000 | - |
| EBITDA margin | 18.3% | 17.0% | -1.3 pp |
| Gross profit margin | 15.3% | 16.4% | +1.1 pp |
| Profit Before Tax (₹) | 3,700,000 | 12,800,000 | +248% |
| Net profit / (loss) (₹) | (97,000,000) | (69,000,000) | Improved by ₹28,000,000 |
| Primary drag factors | Interest & Depreciation | Higher Interest & Depreciation | Increased |
Devyani International Limited (DEVYANI.NS) - Debt vs. Equity Structure
| Metric | FY24 (₹ billion) | FY25 (₹ billion) | YoY Change |
|---|---|---|---|
| Long-term debt | 7.3 | 6.7 | -7.6% |
| Current liabilities | 9.3 | 11.1 | +18.9% |
| Total liabilities | 48.8 | 52.8 | +8.2% |
| Net worth (Shareholders' equity) | 10.4 | 10.9 | +5.3% |
- Reduction in long-term debt to ₹6.7B in FY25 indicates deleveraging of the capital structure and lower medium/long-term interest commitments.
- Current liabilities rose to ₹11.1B, reflecting higher short-term obligations tied to operational expansion and working capital needs.
- Total liabilities increased to ₹52.8B, while net worth expanded to ₹10.9B, improving the balance between debt and equity.
- Implications for liquidity: higher current liabilities raise near-term cash outflow requirements; monitoring of current ratio and cash conversion cycle is critical.
- Capital structure: with improving debt-to-equity dynamics, the company appears to be moving toward a more balanced financing mix, reducing long-term leverage while using short-term financing to fund growth.
| Area | What changed | Investor takeaway |
|---|---|---|
| Long-term financing | Down ₹0.6B (-7.6%) | Lower refinancing and interest-rate exposure on long-term borrowings |
| Short-term obligations | Up ₹1.8B (+18.9%) | Increased need for working capital management; reflects scale-up activity |
| Equity base | Up ₹0.5B (+5.3%) | Retained earnings/equity injections supporting growth and cushioning leverage |
- Operational note: management attributes the rise in current liabilities to expansion-related payables and inventory build-up as stores and services scale.
- Further reading: Devyani International Limited: History, Ownership, Mission, How It Works & Makes Money
Devyani International Limited (DEVYANI.NS) - Liquidity and Solvency
Devyani International's short-term and long-term cash dynamics in FY25 show an operating-led liquidity profile with material investing and financing outflows.- Current ratio: 1.3x - indicating adequate short-term coverage of liabilities by current assets.
- Quick ratio: 0.9x - suggests inventory contributes meaningfully to current assets and that immediate liquidity is slightly tighter than the current ratio implies.
- Operating cash generation strengthened materially, supporting near-term obligations and capital plans.
| Metric | FY25 (₹) | FY24 (₹) | YoY Change |
|---|---|---|---|
| Cash flow from operating activities | 9,000,000,000 | 5,930,000,000 | +51.9% |
| Cash flow from investing activities | (5,000,000,000) | (3,500,000,000) | - |
| Cash flow from financing activities | (4,000,000,000) | (2,000,000,000) | - |
| Net cash flow (ending) | 137,000,000 | 1,000,000,000 | Decrease |
- CFO improvement: A 51.9% YoY rise to ₹9.0 billion in FY25 provided the primary source of liquidity, reflecting stronger store-level cash conversion and operational discipline.
- Capex and investments: Negative investing cash flow of ₹5.0 billion points to significant capital expenditure - new store openings, refurbishments, and supply-chain investments.
- Financing posture: Negative financing cash flow of ₹4.0 billion reflects net debt repayments and possible equity transactions; this reduced external leverage but consumed cash reserves.
- Net cash position: Net cash flow dropped to ₹137 million in FY25 from ₹1.0 billion in FY24, underscoring that strong operational cash was largely offset by investment and financing uses.
- Liquidity resilience: Continued robust operating cash flow supports short-term liquidity and solvency despite sizeable capital deployment.
Devyani International Limited (DEVYANI.NS) - Valuation Analysis
- Average 12‑month price target: ₹189.33 (Street consensus).
- Implied upside vs current price: approximately 14.36%.
- Consensus rating: Moderate Buy (2 Buy, 1 Hold).
- 52‑week range: ₹130.31 - ₹209.75.
- Market capitalization (May 2025): ₹21,674.19 crore.
| Metric | Value |
|---|---|
| Average 12‑month price target | ₹189.33 |
| Implied current price (derived from PT & upside) | ₹165.56 (approx.) |
| Implied upside | ≈ 14.36% |
| Consensus rating | Moderate Buy (2 Buy / 1 Hold) |
| 52‑week range | ₹130.31 - ₹209.75 |
| Market cap (May 2025) | ₹21,674.19 crore |
| Implied shares outstanding (approx.) | ≈ 130.9 crore shares (Market cap ÷ price) |
- Valuation context: The 12‑month target and market price position Devyani as a mid‑to‑large QSR market cap stock with visible volatility (52‑week swing ~61%).
- Multiples: Price‑to‑sales and other multiples are monitored closely by analysts and generally reflect elevated growth expectations versus slower‑growth peers in foodservices.
- Analyst outlook: Forecasts point to continued revenue growth and improving earnings, underpinning the Moderate Buy consensus and the gap between current price and the average target.
Devyani International Limited (DEVYANI.NS) - Risk Factors
Devyani International Limited operates a large multi-brand quick service restaurant (QSR) portfolio (Domino's India master franchise, Popeyes, Costa Coffee, Vaango, etc.) and faces several material risks that can affect financial performance, cash flow and investor returns. Below are the principal risk categories, quantification where relevant, and directional impact on the company's key metrics.- Operational scale and store network complexity
| Metric | Estimated Value (FY2023-24) | Risk Impact |
|---|---|---|
| Total stores | ~1,480 | Higher operational overhead, central coordination needs |
| Company-operated stores | ~860 | Direct margin exposure and working capital needs |
| Franchise/licensed stores | ~620 | Lower capital intensity but royalty/revenue variability |
- Currency fluctuations and international exposure
- Competitive pressures from domestic and global QSR players
| Financial Metric (FY2023-24 est.) | Value |
|---|---|
| Revenue (Consolidated) | ~INR 3,800 crore |
| EBITDA margin | ~9.5% |
| Net profit (PAT) | ~INR 150 crore |
| Net debt | ~INR 1,200 crore |
| Debt/Equity | ~0.9x |
| ROCE / ROE | ~8-12% / ~6-10% |
- Regulatory and compliance risks
- Supply chain and commodity price volatility
- Macro-economic and consumer demand sensitivity
| Risk | Primary Financial Channels Affected | Typical Severity (Low/Medium/High) |
|---|---|---|
| Operational store complexity | Same-store sales, EBITDA margin, working capital | High |
| Currency movements | Revenue translation, local margins, hedging costs | Medium |
| Competitive pricing pressure | Pricing, gross margin, marketing spend | High |
| Regulatory change | Compliance capex, operating costs | Medium |
| Supply chain disruption | COGS, product availability, inventory write-downs | High |
| Economic downturn | Sales volume, average ticket, cash flows | High |
Devyani International Limited (DEVYANI.NS) - Growth Opportunities
Devyani International Limited is positioned to leverage multiple growth levers - portfolio expansion, inorganic moves, international rollout, brand partnerships and digital capabilities - to accelerate top-line and margin recovery. Below are the concrete opportunity pillars and the near- to medium-term implications for investors.- Sky Gate Hospitality acquisition: Entry into the biryani segment creates a new revenue stream beyond quick-service and café formats, providing cross-selling and higher-basket-value opportunities.
- International expansion: Target markets such as Thailand and Nigeria add geographic diversification and incremental revenue outside India, reducing single-market concentration risk.
- Strategic partnerships: Franchises and tie-ups with brands like New York Fries, Tealive and Sanook Kitchen broaden the product mix and capture niche customer segments (snacks, beverages, local flavours).
- New-brand rollout: Planned openings of additional brands by Q1 FY26 signal a deliberate diversification strategy to address varied consumer occasions and increase store-level revenue per operating market.
- Digital & delivery investments: Upgrades in online ordering, app experience and delivery logistics can raise order frequency and reduce time-to-order, improving same-store sales and takeout margins.
- Same-store sales (SSS) focus: Menu innovation, limited-time offers and improved in-store experience are key to driving organic SSS growth and better unit economics.
| Growth Initiative | Key Actions | Near-term KPI | Medium-term Financial Impact |
|---|---|---|---|
| Sky Gate Hospitality (Biryani) | Integrate operations, cross-promotions with existing outlets, scale supply chain | New outlet count; average ticket uplift per cross-sell | Incremental revenue stream; potential 3-6% uplift to consolidated revenue over 18-24 months |
| International Expansion (Thailand, Nigeria) | Open master-franchise stores, partner with local operators, pilot 10-30 stores per market | Store openings; break-even months per store | Revenue diversification; target 5-12% of group revenue from international markets in 3 years |
| Brand Partnerships (New York Fries, Tealive, Sanook Kitchen) | Roll out co-branded formats, optimize share-of-wallet, experiment with cloud kitchens | Number of co-branded outlets and average daily covers | Higher margin categories; basket-size improvement of 8-15% in pilot locations |
| New Brands by Q1 FY26 | Launch, marketing push, pilot-store optimization | Brands launched; customer adoption metrics | Reduces brand-concentration risk; portfolio revenue mix improvement |
| Technology & Delivery | Enhance app/website UX, integrate loyalty, optimize delivery routing | Digital penetration (% of orders), average delivery time | Lower delivery costs per order; improve contribution margins by 1-3 percentage points |
| Same-Store Sales & Menu Innovation | Introduce high-margin SKUs, localized menu, seasonal promotions | SSS growth (%), ticket-size change | Organic revenue growth; improved store-level EBITDA over time |
- Operational scale: With a multi-brand model, realizing synergies in procurement, logistics and shared real estate can reduce cost of goods sold and fixed costs per store.
- Unit economics focus: Targeted improvements in average ticket, table turns and takeout/delivery profitability are core to translating revenue growth into sustained EPS gains.
- Capital allocation: Prioritizing ROI-positive brand rollouts and measured international investments will be critical to limit dilution and preserve balance-sheet health.
Devyani International Limited (DEVYANI.NS) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Disclaimer
All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.
We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.
All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.