Why Did Devyani International Shares Skyrocket 11% Today? Check the Reason

Synopsis: Devyani International Ltd shares rose 11% after its results. Revenue grew 11.3% YoY from ₹1,294 crore to ₹1,441 crore, while the net loss widened from ₹8 crore to ₹11 crore. The company also approved the acquisition of an additional ~11.4% stake in Sky Gate Hospitality Pvt. Ltd.

The shares of the Small-Cap company specializing as a premier Quick Service Restaurant (QSR) operator, acting as India’s largest franchisee for Yum Brands (KFC, Pizza Hut) and a key franchisee for Costa Coffee, are in focus following their Q3 results and strategic acquisition.

With a market capitalization of Rs. 15,028.71 Crores on Wednesday, the shares of Devyani International Ltd jumped up to 10.7 percent, reaching a high of Rs. 128.70 compared to its previous close of Rs. 116.25.

What Happened

Devyani International Ltd, engaged in as a premier Quick Service Restaurant (QSR) operator, is in the spotlight in the day’s trade as they announced their Q3 results as follows:

Its Revenue from operations rose by 11.3 percent YoY from Rs. 1,294 Crores in Q3FY25 to Rs. 1,441 Crores in Q3FY26, and it rose by 4.6 percent QoQ from Rs. 1,377 Crores in Q2FY26 to Rs. 1,441 Crores in Q3FY26.

Its Net Profit YoY went from a loss of Rs. 8 Crores in Q3FY25 to a loss of Rs. 11 Crores in Q3FY26, and on a QoQ basis, it went from a loss of Rs. 24 Crores in Q2FY26 to a loss of Rs. 11 Crores in Q3FY26. 

Strategic Acquisition

The Board of Directors of Devyani International Limited, at its meeting held on February 4, 2026, approved the acquisition of an additional ~11.4% equity stake in Sky Gate Hospitality Private Limited from its promoters/founders for a total consideration of ~Rs 57.5 crore through a mix of cash and issuance of Non-Convertible Redeemable Preference Shares (RPS). Upon completion, Sky Gate will become a wholly-owned subsidiary of the Company. 

The Q3 revenues stood at Rs. 14,409 million, reflecting an 11.3% year-on-year growth. KFC India led with revenues of Rs. 6,032 million, up 5.9% YoY, while the international business posted a strong performance at Rs. 4,734 million, growing 10.1% YoY. Pizza Hut India reported revenues of Rs. 1,781 million, down 6.3% YoY. Meanwhile, own brands contributed Rs. 938 million, registering a 3.3% increase on a like-for-like basis.

As of December 31, 2025, the company operated a total of 2,279 stores, with 1,877 located in India and 402 in international markets. The network comprised 1,174 KFC outlets, 648 Pizza Hut stores, 218 own-brand locations, and 214 franchisee-brand stores, with 240 new stores added year-to-date in FY26. In the quarter, the company added 95 net new stores, including 54 in KFC India and 18 in PH, alongside the scale-up of Biryani by Kilo with 13 new outlets. 

Devyani International Limited is one of India’s largest chains of quick service restaurant (QSR) operators, with a network of over 2,000 stores across more than 280 cities in India, Thailand, Nigeria, and Nepal. The Company’s portfolio represents a compelling blend of iconic global brands and successful homegrown concepts. DIL holds the distinction of being the largest franchisee of Yum! Brands in India and Nepal. 

In addition, DIL is the sole franchisee in India for several international brands, including Costa Coffee, Tea Live, New York Fries, and Sanook Kitchen. Complementing its global portfolio, DIL has developed strong indigenous brands such as Vaango, a South Indian vegetarian cuisine concept, and The Food Street, a food court format that brings multiple brands together under one roof to enhance consumer experience. DIL has also strengthened its Indian cuisine offerings through the acquisition of Sky Gate Hospitality, which owns popular brands such as Biryani By Kilo and Goila Butter Chicken.

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