Devyani International · forward-looking guidance across the available source record.
Guidance tracker
Management indicated crossing an ADS threshold of INR 105,000-110,000 would enable KFC to reach 20% brand contribution margins, as demonstrated historically. This depends on 5-6% SSSG trajectory and quality of new store openings.
Management guided for mid-single digit to near 6% SSSG for KFC going forward, assuming stable macro conditions. This is an improvement from current 3.3% SSSG run-rate.
Management expressed strong bullishness on BBK, targeting it to become a INR 1,000 crore brand over the next few years, building on the turnaround already achieved.
The Sapphire Foods merger remains on track with NSE and BSE approvals received in June. Management expects completion by end of FY2027, enabling Pizza Hut push from FY28 onward.
Management reiterated achieving brand contribution breakeven for Skygate by end of FY26, with steady progress reported.
KFC India on track to open 100-110 net new stores in FY26; 30 added in Q2.
International business to add 20-21 KFC stores in Thailand during FY26.
Franchise and own brands (including Biryani by Kilo, Wango) to add ~100 net stores in FY26 with capex of about ₹50 crore.
Management plans no net new Pizza Hut stores in calendar 2026, focusing on shutting loss-making stores and maintaining store count broadly at Dec 2025 levels.
Devyani plans to add 110-120 KFC stores annually, consistent with past guidance, post-merger.
Estimated annual merger synergies from the Sapphire Foods merger are ₹210-225 crore, expected to be realized post-merger completion.
Management guided corporate G&A at approximately 5% of revenue for FY27, excluding one-time items.
Management expects to add 200-225 net new stores in FY27, with KFC contributing 100-110 stores and the balance from Costa Coffee, Biryani by Kilo, and international businesses.
The proposed merger is progressing as per plan, with filings completed and CCI application expected shortly. Completion is targeted by end of the current fiscal year.
Management indicated that the first 45 days of the current quarter show SSSG trends in line with Q4, and they are confident of maintaining the momentum barring macro shocks.