Devyani International shares fall nearly 5% after company posts ₹8 crore net loss in Q3 FY25

Shares of Devyani International ended 4.51% down at ₹170 apiece on the NSE on Tuesday, February 11, following the announcement of the company’s quarterly earnings.

Devyani International Limited (DIL), the largest franchise for Yum Brands—KFC, Pizza Hut and Costa Coffee—in India, announced its financial results for the October-December quarter of the current fiscal year (Q3 FY25), posting a consolidated net loss of ₹7.65 crore. The company suffered losses due to increased expenses and taxes. In the same quarter of the last fiscal year, the company reported a net profit of ₹5.07 crore.

However, the quick service restaurant operator’s revenue from operations for Q3 FY25 jumped to ₹1,294.4 crore, up 53% compared to ₹843.13 crore in the year-ago period.

The company’s market capitalisation dropped to ₹20,506.53 crore. The stock is now over 31% below its 52-week high of ₹222.74 per share hit in September 2024.

Its total expenses stood at ₹1,294.84 crore in the quarter under review as against ₹838.06 crore in Q3 FY24, marking a 54.5% increase. Its tax expenses jumped as much as 250.7% to ₹16.17 crore from ₹4.61 crore in the previous year.

Commenting on the performance, the company’s non-executive Chairman Ravi Jaipuria said the company's consolidated revenue grew 53.5% year-on-year and has "also seen slightly better margin performance because of better SSSG (same-store sales growth) and certain fresh cost optimisation measures".

He added that DIL has successfully met its store expansion guidance, crossing the milestone of 2,000 stores in the recent quarter, across all brands and geographies, ahead of the original target.

DIL’s South Indian food brand Vaango posted a growth of 9.6% in same-store sales growth as against the 11.5% rise in the September quarter, while Pizza Hut reported a 0.8% drop as compared to a drop of 5.7% in the previous quarter. Additionally, Costa Coffee’s same-store sales rose by 5.1% compared to 8.7% in the preceding quarter.