Devyani Intl. Q1 FY27 Results (NSE: DEVYANI)
Signal: Loss narrowed
The read
Revenue growth (+16.5% YoY) decelerated from the prior year's rapid expansion (Q4FY26 +18.5%, Q3FY26 +11.3% base-effect), but net loss narrowed 55.8% YoY thanks to lower impairment provisions and better absorption of overheads. However, margin compression (OPM -249bps YoY) and persistent finance-cost drag signal that the company's high leverage (D/E 2.49) and subsidiary losses remain the dominant concern. Standalone shows a profitable core, but the group story is still one of debt-servicing overhead eroding operating gains.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,580.52 Cr | 16.5% | 10.0% |
| EBIT | ₹228.59 Cr | 13.2% | |
| Net profit | ₹-9.84 Cr | 55.8% | |
| EPS | ₹-0.08 | 55.6% | |
| EBIT margin | 15.17% |
P&L walk
Revenue grew +16.5% YoY to ₹1,580.52 Cr driven by store additions and menu-price pass-through, but OPM contracted 249bps to 15.17% as employee cost (1,803.54 Cr, +20.5% YoY) and finance cost (701.44 Cr, +20.4% YoY) outpaced top-line growth. Net loss narrowed to ₹98.40 Cr from ₹222.80 Cr YoY, helped by lower depreciation and impairment provisions, but remains pressured by interest burden and subsidiary losses.
Segments
Company operates single 'food and beverages' segment; no segment table provided. Consolidated vs standalone divergence visible – group PAT loss of ₹98.40 Cr contrasts with standalone PAT profit of ₹85.01 Cr, indicating subsidiaries (especially DMCC/Thailand and Nigeria) are the primary loss-makers.
Key positives
- Revenue grew +16.5% YoY to ₹1,580.52 Cr, accelerating from Q3FY26's +11.3% and Q2FY26's +12.7%, indicating steady store-level traction.
- Consolidated net loss narrowed to -₹98.40 Cr from -₹222.80 Cr YoY, a 55.8% improvement – 5th consecutive loss but trending better.
- Standalone PAT rose +37.0% YoY to ₹85.01 Cr, proving the domestic QSR core is profitable and generating cash.
Key concerns
- OPM contracted 249bps YoY to 15.17% – employee costs grew 20.5% YoY and finance costs 20.4% YoY, both outpacing revenue growth.
- 5th straight consolidated net loss – despite revenue growth, interest burden (₹701.44 Cr) and subsidiary losses prevent group profitability.
- Finance cost % of revenue remains elevated at 4.4% – with D/E at 2.49x, any rate hike or slowdown would pressure earnings further.
Research and educational content only. Not investment advice.