Devyani’s Q1 margin expansion strengthens profitability and merger-synergy case
Devyani International posted Q1 FY27 revenue of Rs 1,580 crore, up 17% year-on-year, while EBITDA rose 24% to Rs 255 crore. Margin improved 100 bps to 16.1% as management prioritised average daily sales and profitability over aggressive store additions. Motilal Oswal retained its Buy rating and Rs 160 target.
Devyani International reported stronger Q1 FY27 revenue, EBITDA and margins. Motilal Oswal retained its Buy rating and Rs 160 target. Management is prioritising ADS and profitability over aggressive openings, while the Devyani-Sapphire merger is expected to generate about Rs 220 crore in annual synergies.
Why this matters
The result extends Devyani’s recent Q1 pattern: KFC, Costa and BBK posted positive same-store sales, revenue grew 16.5%, and shares rose 9% after an earlier margin-improvement update.
Retail-company signals are accelerating, up 309825% quarter on quarter.