Synopsis: Devyani International received NSE and BSE approvals for its proposed merger with Sapphire Foods, subject to regulatory, shareholder, and creditor approvals.
This Small-cap Stock, engaged in operating quick-service restaurants and food-service outlets, managing global and homegrown brands including KFC, Pizza Hut, Costa Coffee, and other restaurant concepts, jumped 8.89 percent in today’s intraday trade. In this article, we will explore the reasons for the stock’s surge.
With a market capitalization of Rs. 14,289.77 crores, the share of Devyani International Limited has reached an intraday high of Rs. 121.25 per equity share, rising nearly 8.89 percent from its previous day’s close price of Rs. 111.35. Since then, the stock has retreated and is currently trading at Rs. 115.80 per equity share.
Reason Behind the Surge
Devyani International Limited has received approval-related observation letters from NSE and BSE for its proposed Scheme of Arrangement with Sapphire Foods India Limited. NSE issued a “No Objection” letter, while BSE provided a “No Adverse Observation” letter, allowing the companies to proceed with filing the scheme before the National Company Law Tribunal (NCLT). However, the scheme remains subject to approvals from shareholders, creditors, regulatory authorities, and other statutory requirements.
The exchanges have directed both companies to comply with various conditions, including obtaining Competition Commission of India (CCI) approval, maintaining updated financial disclosures, and providing detailed information to shareholders regarding the scheme’s objectives, benefits, risks, valuation methods, and shareholding impact.
The approval letters are valid for six months, during which the companies must submit the scheme to the NCLT. These observations ensure transparency and help shareholders make informed decisions about the proposed merger arrangement.
Store Count
Devyani International Limited continued to expand its store network during FY26, increasing its total store count from 2,039 stores in Q4 FY25 to 2,256 stores in Q4 FY26. This represents a net addition of 217 stores, reflecting a 10.6 percent year-on-year growth in store count.
The steady expansion highlights the company’s strong growth strategy, enhanced market penetration, and commitment to increasing customer accessibility across regions, supporting long-term revenue growth and strengthening its position in the quick-service restaurant industry.
Company Overview
Devyani International Limited is a leading Indian food-service company focused on the quick-service restaurant (QSR) segment. The company is the largest franchisee of Yum! Brands in India and operates well-known international brands such as KFC, Pizza Hut, and Costa Coffee. It has built a strong presence across India through an extensive network of restaurants and cafes.
In addition to global brands, Devyani International manages several homegrown and acquired food concepts, including Vaango, Biryani By Kilo, Goila Butter Chicken, New York Fries, and Sanook Kitchen. Through its diversified brand portfolio and expanding store network, the company serves a wide customer base across India and selected international markets.
Recent Quarter Results
Coming into financial highlights, Devyani International Limited’s revenue has increased from Rs 1,212.59 crore in Q4 FY25 to Rs. 1,436.86 crore in Q4 FY26, which has grown by 18.50 percent. The net loss of the company reduced from Rs. 16.77 crore in Q4 FY25 to Rs. 9.84 crore in Q4 FY26. Devyani International Limited’s revenue has grown at a CAGR of 38 percent over the last five years.
In terms of return ratios, the company’s ROCE and ROE stand at 4.66 percent and -1.67 percent, respectively. Devyani International Limited has an earnings per share (EPS) of Rs. -0.31, and its debt-to-equity ratio is 2.49x.
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