Synopsis:
Devyani International’s announced Q1FY26 results, with Macquarie maintaining an Outperform rating and raising its target price despite margin pressures and a Q1 EBITDA miss.
One of India’s largest quick service restaurant (QSR) operators was in the spotlight during today’s trade after analysts assigned a future outlook for the stock following the announcement of Q1FY26 results by the company.
With the market capitalization of Rs. 19,449.83 crore, the shares of Devyani International Limited were trading at Rs. 157.86, down by 0.65 percent from its previous day’s close price of Rs. 158.86 per equity share.
What’s the news?
Macquarie has maintained an outperform rating on the stock and raised the target price from Rs. 215, with an upside of 36.2 percent from CMP of Rs. 157.86. Macquarie maintains an Outperform rating on Devyani International, citing a Q1 EBITDA miss due to higher promotions at KFC and Pizza Hut, margin weakness across formats in India, and limited near-term triggers, with recovery expected later.
Devyani International Ltd (DIL), Yum Brand’s largest franchisee in India and a major QSR operator, operates over 2,000 stores across 280+ cities in India and abroad. In addition, it is the sole franchisee for Costa Coffee, Tea Live, New York Fries, and Sanook Kitchen in India. Yum Brands operates KFC, Pizza Hut, and Taco Bell around the world, whereas Costa Coffee, which was founded in 1971, has 3,900+ locations in 41 countries.
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Financial Outlook
Devyani International Ltd posted revenue of Rs. 1,357 crore in Q1 FY26, up 11.91 percent QoQ from Rs. 1,212.6 crore and rose 11 percent YoY from Rs. 1,221.9 crore. Net profit stood at Rs. 2.2 crore turnaround from loss of 16.8 crore in Q4 FY25, but declined sharply by 90 percent from profit of Rs. 22.4 crore in Q1 FY25.
The company’s EBITDA stood at Rs. 2,049 crore, rising 2.04 percent QoQ from Rs. 2,008 crore but declined by 8.28 percent YoY from Rs. 2,234 crore. EBITDA margin also declined to 15.1 percent in Q1 FY26 from 18.3 percent a year ago.
Written by Akshay Sanghavi
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