Devyani International share price jumps 9% after Q1 profit surges four-fold, margin improves

Shares of Devyani International rose as much as 9% on Wednesday, July 29, after the company reported an improvement in profitability for the quarter ended June, with consolidated net profit rising over fourfold year-on-year to ₹14.6 crore from ₹3.6 crore in the same quarter last year.

Revenue for the quarter increased by 16.5% to ₹1,580.5 crore from ₹1,357 crore, while earnings before interest, tax, depreciation and amortisation (EBITDA) grew 22.7% to ₹254 crore from ₹207 crore. EBITDA margin expanded to 16% from 15.3% in the year-ago quarter.

Profit before tax from continuing operations stood at ₹22.9 crore during the quarter, compared with ₹2.9 crore a year ago, while profit attributable to the owners of the company nearly quadrupled to ₹14.6 crore from ₹3.7 crore. Total income rose to ₹1,599.7 crore from ₹1,370.5 crore in the corresponding quarter last year.

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The company also reported a turnaround in its standalone performance, with net profit rising 37% to ₹8.5 crore from ₹6.2 crore a year ago. Standalone revenue from operations increased 8.9% to ₹998.5 crore from ₹916.9 crore, while profit before tax rose to ₹10.7 crore from ₹7.2 crore.

During the quarter, the board-approved scheme for the amalgamation of Sapphire Foods India with Devyani International

continued to progress through the regulatory approval process. Under the proposed scheme, Devyani International will issue 177 equity shares of Re 1 each for every 100 equity shares of ₹2 each held in Sapphire Foods.

Devyani International also said the amalgamation of Sky Gate Hospitality and its wholly owned subsidiaries with Devyani International advanced during the quarter, with the National Company Law Tribunal (NCLT), Chandigarh Bench, pronouncing its First Motion Order on July 23. The company is in the process of filing the Second Motion Petition.

Separately, the company's FY26 annual report showed that Costa Coffee's store count in India declined to 198 outlets from 220 a year earlier, marking the brand's first annual reduction in stores in over five years.

Despite the lower outlet count, Costa Coffee's revenue rose 7% year-on-year to ₹212.5 crore, reflecting higher revenue per store. Devyani International said it is adopting a more disciplined and selective approach to expansion while continuing to strengthen the premium coffee chain, which it considers one of its key growth drivers.

Shares of Devyani International are trading 8.9% higher on Wednesday after the results announcement at ₹123.48. The stock is still down 16% so far this year.