Devyani International Ltd (DIL), the largest Indian franchisee of Yum! Brands, reported a sharp reduction in its net loss for the March quarter and the full financial year ended March 2025. Strategic acquisitions and aggressive store expansion were central to this turnaround, with total consolidated income rising 39% year-over-year to Rs. 4,988.04 crore. The company also diversified its portfolio by acquiring Sky Gate Hospitality, owner of Biryani By Kilo, and introducing global brands such as New York Fries and Tealive. With a total of 2,039 stores now across India, Thailand, Nigeria, and Nepal, DIL’s operational footprint is wider than ever.
Quarterly Financials Show Significant Recovery
Devyani International posted a net loss of Rs. 16.76 crore in the March quarter of FY25, substantially narrowing from the Rs. 48.95 crore loss incurred in the same quarter of the previous fiscal. This improvement was backed by a solid 15.8% year-on-year increase in operational revenue, which rose to Rs. 1,212.6 crore.
Total income, inclusive of other income, came in at Rs. 1,225.77 crore—a 15.5% rise compared to the previous year. Total expenses also climbed, reaching Rs. 1,247.90 crore for the quarter, up 13.5% year-on-year, as the company continued to invest in expansion and acquisitions.
Full-Year Performance: Best in Company History
For the full fiscal year, Devyani International limited its net loss to Rs. 6.9 crore, down from Rs. 9.65 crore in FY24. The company described this as its best-ever annual performance, underscoring the success of its growth strategies.
Total consolidated income for the year surged 39% to Rs. 4,988.04 crore, buoyed by improved domestic performance and international operations. Notably, the acquisition of KFC stores in Thailand played a pivotal role in enhancing top-line growth.
Strategic Acquisitions and Brand Diversification
One of the year’s most significant developments was DIL’s acquisition of Sky Gate Hospitality, which operates the Biryani By Kilo brand. This move signaled DIL’s entry into the fast-growing biryani category, broadening its portfolio beyond its traditional QSR offerings.
Additionally, the company entered into tie-ups with three international foodservice brands—New York Fries, Tealive, and Sanook Kitchen—further diversifying its presence in the food and beverage space. The first New York Fries outlet was launched in Mumbai, with more stores planned for rollout in the coming months.
Aggressive Store Expansion Fuels Growth
A cornerstone of DIL’s growth strategy has been its rapid expansion across multiple geographies. In FY25, the company added 257 new outlets, taking the total number of operational stores to 2,039 as of March 31, 2025.
These stores are spread across India and key international markets including Thailand, Nigeria, and Nepal. The aggressive expansion has not only reinforced the company’s market leadership but also provided a scalable foundation for future growth.
Outlook: Poised for Sustainable Growth
With a sharpened focus on operational efficiency, diversification, and strategic geographic expansion, Devyani International appears well-positioned for long-term profitability. The company’s ability to reduce losses while significantly increasing revenues demonstrates the effectiveness of its business model and leadership.
As consumer preferences evolve and the QSR segment in India and abroad continues to grow, DIL’s broad brand portfolio and international presence are expected to deliver sustained value to shareholders and stakeholders alike.
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