Devyani International Ltd

Meeting Details

• Date: July 29, 2026
• Type: group conference call
• Mode: virtual
• Event: Investors & Analysts Conference Call

Participants

• Key company participant: Chief Sustainability Officer & Company Secretary

Purpose

• Discussion post declaration of Q1 FY27 unaudited results for quarter ended June 30, 2026

Additional Notes

• Audio recording of the call is available

ESOP grant details

• NRC approved grant of 2,713,700 ESOPs under ESOP 2021.
• Exercise price fixed at Rs 101 per option.
• Each option converts into one equity share of Re 1 each.
• Options vest per grant letter with minimum one-year gap from grant.
• Exercise window is five years from each vesting date.
• No vesting has occurred yet.
• No lock-in on shares arising on exercise.
• Shares will rank pari passu with existing equity shares.
• Annexure I contains detailed ESOP disclosures, filed per Regulation 30.
• Scheme complies with SEBI SBEB Regulations 2021.

Financial highlights

• Q1 FY2027 revenue Rs 15,805 million, up 16.5% YoY.
• Highest ever quarterly EBITDA of INR 2.55 billion; margin 16.1%.
• Operating EBITDA Rs 1,511 million; margin 9.6%; up 38% YoY.
• Profit after tax Rs 171 million; highest in 8 quarters.

Brand and store performance

• KFC SSSG +3.3%; Costa +10.2%; BBK +7.2%; Vaango +7.1%.
• Store network at 2,255; on-track to FY2027 expansion targets.

Strategic developments

• Merger with Sapphire Foods progressing along expected timelines.
• NSE and BSE approvals received in June; completion targeted by end-FY27.
• Yum! Brands confidence in DIL and RJ Corp acknowledged.

Leadership and governance

• Under Manish's leadership, management team strengthened; new team in place.
• DIL 2.0 branding referenced for organizational changes.

Outlook and risks

• El Niño risk; below-normal season forecast; consumption recovery expectations cautious.
• On-track to meet FY2027 store expansion targets.

Business Overview

• Devyani operates over 2,200 QSR stores across India, Thailand, Nigeria, and Nepal.
• Largest Yum! Brands franchisee in India and Nepal; owns Costa Coffee, New York Fries.
• Merger with Sapphire Foods progressing; regulatory filings targeted FY27 completion.
• DIL 2.0 leadership in place; governance and culture upgrades underway.

Operational Highlights

• Q1 FY27 SSSG: KFC +3.3%; Costa +10.2%; BBK +7.2%; Vaango +7.1%.
• KFC India net new stores +11; Thailand +2; BBK +3.
• Total DIL stores at 30 Jun 2026: 2,255 (down 1 from Mar 2026).
• Highest-ever Operating EBITDA INR 151 Cr; Reported EBITDA INR 255 Cr; EBITDA margin 16.1%.
• PAT INR 171 Cr; PBT INR 229 Cr; Gross margin 69.1%.

Financial Performance

• Q1 FY27 revenue INR 15,805 Mn; YoY +16.5%.
• India revenue INR 10,709 Mn; +14.9%; KFC India INR 6,842 Mn; +11.7%.
• International revenue INR 5,230 Mn; +20.7%.
• Brand contribution 14.2% vs 13.1% YoY; Consolidated gross margin 69.1%; EBITDA margin 16.1%.
• PAT INR 171 Mn; PBT INR 229 Mn.

Capital Structure & Liquidity

• Finance costs INR 701 Mn; Depreciation INR 1,804 Mn; Impairment INR 11 Mn.
• No material debt/equity actions disclosed in the presented material.

Strategic Priorities & Outlook

• Merger with Sapphire Foods on track; NSE and BSE approvals received in June.
• Target completion by end-FY27.
• DIL 2.0 focus: stronger management bench; dine-in-led growth and brand performance.

Risks & Mitigation

• Volatile operating environment and El Niño risk; mitigation via diversified brand portfolio.

Governance & Leadership

• New management team in place; 'DIL 2.0' cultural/operational shift underway.
• Merger approvals and regulatory filings progressed with NSE/BSE.

Key disclosures and actions

• Unaudited standalone and consolidated results for quarter ended 30 June 2026 approved.
• Joint auditors Walker Chandiok and O P Bagla issued limited review reports with unmodified opinion.
• Scheme of Arrangement to amalgamate with Sapphire Foods India Limited approved; regulatory approvals in progress.
• Sky Gate Hospitality Private Limited: remaining stake acquired; becomes wholly owned subsidiary.
• NCLT First Motion Order pronounced 23 July 2026; Second Motion Petition to be filed.
• Group operates in a single reportable food and beverages segment.
• Labour Code impact recognised as exceptional item in FY2026.
• Lease dispute payment of INR 92.90 million recognised as exceptional item.
• Certain Sky Gate assets reclassified as held for sale; Peanutbutter’s status changed in Jan 2026.
• Reports prepared under Ind AS and approved by Board; Audit, Risk Management and Ethics Committee reviewed.

Target and ownership

• RD is a Thailand-based KFC store operator.
• Total RD investment: THB 1,210 Mn via DID and Yellow.
• Post-investment RD ownership: DID 49%, Yellow 51%.
• RD incorporation date and turnover history not disclosed.

Related-party and financing

• Acquisition is a related-party transaction within Devyani group.
• Convertible loan of THB 400 Mn to DID; conversion pending DMCC approval.

Regulatory, timeline, and consideration

• DMCC Authority approval required for share allotment to DID.
• Completion targeted by 30 June 2026; subject to regulatory approvals.
• Consideration comprises THB 1,210 Mn RD investment; form is equity via group subsidiaries.