Shares of Devyani International, the company managing KFC and Pizza Hut outlets, experienced a significant 9% surge in afternoon trading today, reaching Rs 124. This rise followed the announcement of robust financial results for the first quarter ending June 2026.
Strong Q1 Performance Boosts Investor Confidence
The company reported a net profit of Rs 14.6 crore for the June 2026 quarter, a substantial fourfold increase compared to Rs 3.6 crore in the same period last year. This impressive profit growth was a key driver behind the stock's upward movement.
Devyani International's revenue also saw a healthy rise, climbing 16.5% to Rs 1,580.5 crore in Q1, up from Rs 1,357 crore a year ago. Earnings before interest, tax, depreciation, and amortisation (EBITDA) increased by 22.7% to Rs 254 crore, with the EBITDA margin improving to 16% from 15.3% in the prior-year quarter.
Furthermore, profit before tax from continuing operations surged to Rs 22.9 crore in Q1, significantly higher than Rs 2.9 crore recorded in the corresponding quarter last year. The company's total income for the quarter stood at Rs 1,599.7 crore, an increase from Rs 1,370.5 crore previously.
Merger Progress and Future Outlook
Beyond its strong earnings, Devyani International provided updates on its ongoing merger initiatives. The proposed amalgamation of Sapphire Foods India with Devyani International continued to advance through the necessary regulatory approval processes during the quarter. Under this share-swap arrangement, Sapphire Foods shareholders are set to receive 177 equity shares of Devyani International for every 100 shares they hold in Sapphire Foods.
Additionally, the proposed merger of Sky Gate Hospitality and its wholly-owned subsidiaries with Devyani International also progressed. The National Company Law Tribunal issued its First Motion Order on July 23, following which the company has initiated the process for filing the Second Motion Petition.
Despite today's strong performance, the Devyani International stock is still down 19% year-to-date in 2026, indicating that investors are reacting positively to recent financial improvements and strategic moves.