Devyani International Q2 FY27 Results Analysis: Revenue Grows 10%, Margin Expands 134 bps

Cofacto Research Published November 02, 2026 3 min read

Neutral

Devyani International Ltd's Q2 FY27 numbers came in mixed. Here's a quick read of what worked, what to watch, and what management said.

Quick Details

Results date	November 02, 2026
Revenue (Q2)	Rs. 1,519.43 Cr (+10.36% YoY)
PAT (Q2)	Rs. 3.46 Cr
EBITDA margin	15.29% (+134 bps YoY)
EPS (Q2)	Rs. 0.00

Quarter Snapshot

Q2 FY27 revenue grew 10.36% YoY to Rs.1,519.43 Cr and continuing-ops PBT swung from a Rs.(26.78) Cr loss to Rs.5.69 Cr, with EBITDA margin up 134 bps YoY to 15.29%. However, all lines faded sequentially — EBITDA fell 8.62% QoQ and owners' PAT was negative at Rs.(0.24) Cr — while H1 profitability is flattered by a Rs.21.09 Cr lease-termination gain and the standalone India business remains loss-making. Cash generation (FCF Rs.267.65 Cr, CFO/EBITDA 1.00x) and Rs.376.36 Cr of H1 debt repayment are the quality markers, with the Sapphire merger (CCI filed 10 Sep 2026) the key pending catalyst.

Q2 FY27 Expectations vs Results

Driver	Expected before results	What happened	Verdict
Revenue "in-line to ahead" — "QSR was the single fastest-growing retail category in both months"	Up	Revenue Rs.1,519.43 Cr, +10.36% YoY, −3.87% QoQ	Partially
Margins — "LPG… a tailwind relative to Q1… watch whether Operating EBITDA margin builds on Q1's 9.6%"	Up	Operating EBITDA not disclosed in the filing; Reported-EBITDA margin 15.29% vs 16.09% Q1 (−80 bps QoQ, +134 bps YoY)	Partially
"H1 FY27 net store additions vs the 200–225 guide"	Acceleration	Not disclosed in the filing	Not observable
"whether the promised strategic update lands on this call" (Pizza Hut)	Update expected	No Pizza Hut disclosure in the filing	Not observable
"Merger… CCI approval was still pending as of Oct 22; any approval… is the call's biggest potential news"	Progress	Filing note 4: approvals in process; no completion recorded — status quo	Played out

Read our full results preview.

Management Guidance vs Delivery

What management said	Where	What happened	Verdict
Sapphire merger completion by end-FY27; synergies Rs.210–225 Cr p.a.	Q1 FY27 earnings call ("timelines are broadly on track with our stated target of completion by the end of FY 2027")	Filing note 4: approvals in process; no completion recorded; CCI application filed 10 Sep 2026 per company communications	On Track
Tea Live discontinuation by Q1 FY27	Q4 FY26 earnings call	Discontinued after testing per pre-result company communications	Met

Key Investment Insights

Key Positives

Consolidated revenue grew 10.36% YoY to Rs.1,519.43 Cr
PBT from continuing operations swung from a Rs.(26.78) Cr loss in Q2 FY26 to a Rs.5.69 Cr profit in Q2 FY27
EBITDA grew 20.94% YoY to Rs.232.32 Cr with margin up ~134 bps YoY to 15.29%
Gross-margin proxy improved 71 bps YoY to 68.47% as materials (+7.94%) and employee costs (+4.78%) grew slower than revenue (+10.36%)
H1 FY27 FCF was Rs.267.65 Cr with CFO/EBITDA at 1.00x
Rs.376.36 Cr of borrowings repaid in H1 FY27; net debt reduced to Rs.831.09 Cr
Finance costs fell 5.12% YoY to Rs.65.31 Cr
Sapphire merger progressing: CCI application filed 10 September 2026 and Sky Gate Second Motion heard 28 October 2026 with order reserved

Risk Factors

Revenue declined 3.87% QoQ and every P&L line faded sequentially versus Q1 FY27
EBITDA fell 8.62% QoQ with margin down 80 bps sequentially to 15.29%
PAT attributable to owners was negative at Rs.(0.24) Cr versus Rs.14.65 Cr in Q1 FY27; NCI captured the entire Rs.37.04 Cr profit
Standalone India business swung to a Rs.(8.55) Cr PAT loss with standalone PBT of Rs.(10.71) Cr; consolidated profit is carried by subsidiaries
Finance costs of Rs.65.31 Cr are ~2.8x the quarter's PBT, remaining the largest drag between EBITDA and PAT
H1 PAT of Rs.20.57 Cr is flattered by a Rs.21.09 Cr non-recurring lease-termination gain; normalized H1 PAT is ~Rs.5.40 Cr