Latest news with #SkyGateHospitality
Business Standard
5 days ago
- Business
- Business Standard
Devyani Intl gains after reporting turnaround Q1 PAT on QoQ basis
Devyani International (DIL) rallied 3.22% to Rs 158.50 after the company reported a consolidated net profit of Rs 3.69 crore in Q1 FY26, compared to a net loss of Rs 14.74 crore posted in Q4 FY25. Revenue from operations increased 11.05% quarter-on-quarter (QoQ) to Rs 1,356.97 crore in the June 2025 quarter. On a year-on-year (YoY) basis, the companys net profit dropped 87.74%, while revenue increased 11.05% in Q1 FY26. The company reported profit before tax (PBT) of Rs 2.94 crore, marking a turnaround from a loss before tax of Rs 22.35 crore on a QoQ basis. However, PBT declined 90.37% YoY. Total expenses rose by 13.82% to Rs 1,367.40 crore in Q1 FY26, compared to Rs 1,201.29 crore in Q1 FY25. The increase was due to higher cost of materials consumed (up 14.64% YoY), higher employee benefits expenses (up 19.54% YoY) and higher other expenses (up 14.52% YoY). EBITDA declined by 8.28% YoY to Rs 204.90 crore. The EBITDA margin also fell to 15.1% in Q1 FY26, down from 18.3% reported in Q1 FY25. The company stated that it opened 106 new stores in Q1 FY26, taking the total store count to 2,145 (including 105 stores of Sky Gate Hospitality). Additionally, the company invested Rs 103 crore in Sky Gate, increasing its stake to around 86.13%. The scaling up of new brands remains on track. During the quarter, it added 2 Tealive stores in Thailand and launched the first New York Fries store in Mumbai. Ravi Jaipuria, non-executive chairman of Devyani International, said, Indias QSR industry is on a structural growth trajectory underpinned by rising urbanization, growing income levels, increasing digital adoption, increase in female work participation rate and a growing appetite for convenience esp. among younger consumers. While near-term macro factors have led to a phase of soft consumer demand, we see a better outlook for the industry in coming times. We are learning from the evolving consumer trends, and we need to reset our business to have a differentiated and compelling proposition for our consumers whether they are online or offline. We strongly believe that our industry will remain a prime beneficiary of evolving consumer behaviour. Its important that job creation continues in the economy with rising per capita income which will lead to higher consumption. Considering the significant market potential, we continue to execute on our long-term growth agenda. I am pleased to announce that we have concluded the acquisition of Sky Gate Hospitality which runs Biryani by Kilo and Goila Butter Chicken brands and increased our stake to 86.13% subsequently. This gives us access to market leading brands to expand our presence in the Biryani and Indian cuisine segment one of the largest food categories in the country. Sky Gate Hospitality has 105 outlets at present, and we are confident that these brands will be one of the key contributors to our expansion plans going forward. Our financial performance has been healthy. On a consolidated basis, Q1 revenues reached Rs. 1,357 Cr a 11.1% YoY growth. This growth was driven by healthy growth from KFC, Costa and the Food Court business in India and supported by 11.2% YoY growth in the international business. Reported EBITDA came in at Rs. 205 Cr with EBITDA margins at 15.1%. The slight dip in margins was due to deleverage from lower ADS YoY and investments in marketing and promotions in the quarter. As one of the leading QSR players, we are well positioned to benefit from the rebound in consumer spending. Our multicuisine, multi-format strategy caters to a broad spectrum of consumer tastes, occasions, and price points, while diversifying away from any category or geography specific risks. It also enhances our ability to capture opportunities across varied markets and evolving consumer trends. With the strength of our brands and our execution capabilities, we are confident of our ability to deliver consistent growth. Our focus will remain on scaling profitably, strengthening both our core and emerging brands, and creating long-term value for all stakeholders. Devyani International (DIL) is the largest franchisee of Yum Brands in India and is among the largest operators of chain quick service restaurants (QSR) in India, on a non-exclusive basis, and operates more than 2,000 stores across more than 280 cities in India, Nigeria, Nepal and Thailand, as of March 31, 2025. In addition, DIL is the sole franchisee for Costa Coffee, Tea Live, New York Fries and Snook Kitchen in India. Yum! Brands Inc. operates brands such as KFC, Pizza Hut and Taco Bell brands and has presence globally with more than 60,000 restaurants in over 155 countries. Founded in London by Italian brothers Sergio and Bruno Costa in 1971, Costa Coffee is present in 41 countries around the world, with over 2,800+ coffee shops in the UK&I and 1,100+ globally
New Indian Express
24-04-2025
- Business
- New Indian Express
Devyani International acquires majority stake in Sky Gate Hospitality
NEW DELHI: Devyani International, which operates quick service restuarants (QSR) like KFC and Pizza Hut, has acquired an 80.72% stake in Sky Gate Hospitality, the parent company of Biryani by Kilo. The total value of the transaction is Rs 431.31 crore. Besides Biryani by Kilo, Goila Butter Chicken and The Bhojan are also part of the deal. Sky Gate Hospitality operates 100 outlets in 40 cities through its three brands. Its two other brands - Get-A-Way and Krazy Kebab Co - will get disinvested over the next nine months. Post the transaction, Sky Gate will become a subsidiary of the company. Devyani International has approved a preferential issue of 2.37 crore shares at Rs 176.78 each to acquire up to 80.72% equity stake in Sky Gate Hospitality. Devyani International operates popular international fast food and beverage brands like KFC, Pizza Hut, Costa Coffee and Vaango in India. It operates over 2030 stores in about 280 cities in India, Nepal, Thailand and Nigeria. Ravi Jaipuria, Non-executive Chairman of Devyani International said that while the company has many international brands under its portfolio, there has been a need to introduce the traditional flavour of Indian food to its menu. 'Sky Gate's command over flavors and technique of cooking biryani, has enabled them to deliver high-quality and delectable dishes, making them standout and leader in the industry,' Juipuria said in a statement. Founded in 2015 by Kaushik Roy and Vishal Jindal, Sky Gate has expanded its reach over 100 stores across 40+ cities. Kaushik Roy and Vishal Jindal, Founders of Sky Gate said 'We are delighted to partner with a seasoned industry leader. We are confident that our brands have found the right home for future growth and expansion of Sky Gate portfolio. Together, we aim to combine our knowledge and experience to enhance customer offerings and elevate the overall dining & delivery experience.'
Time of India
24-04-2025
- Business
- Time of India
Devyani International buys 80% in Biryani by Kilo for Rs 419 crore
Synopsis Devyani International Ltd (DIL) has acquired an 80.7% stake in Sky Gate Hospitality, the parent company of Biryani by Kilo, for Rs 431.31 crore. This acquisition includes other brands like Goila Butter Chicken and The Bhojan, adding 100 outlets across 40 cities to DIL's portfolio.
Business Standard
21-04-2025
- Business
- Business Standard
Devyani Intl jumps as board plans to acquire Biryani By Kilo
Devyani International rallied 5.20% to Rs 174 after the company announced that its board will meet on Thursday, 20 April 2025, to consider acquiring majority stake in Sky Gate Hospitality, which operates restaurants under brand name, Biryani by Kilo. The company will consider and approve the definitive agreements and issuance of equity shares of the company on a preferential basis to discharge the consideration payable for acquisition of controlling equity stake in Sky Gate Hospitality Private, operating restaurants under the brand Biryani by Kilo and other brands. The issuance of equity shares shall be subject to the approval of equity shareholders at an extra-ordinary general meeting of the company. Devyani International (DIL), among the fastest growing chain Quick Service Restaurant (QSR) operators in the country, is the largest franchisee for Yum Brands (KFC & Pizza Hut) in India. It is also the sole franchisee for Costa Coffee Brand and stores in India. The company reported consolidated net loss of Rs 0.49 crore in Q4 FY25 as compared with net profit of Rs 9.62 crore in Q4 FY24. Net sales jumped 53.5% YoY to Rs 1,294.40 crore in Q4 FY25.
