Devyani International Ltd.
NSE: DEVYANIDevyani International Ltd.: A 30-second snapshot
Devyani International (₹118.47) is the franchise operator of KFC, Pizza Hut, and Costa Coffee in India, currently reporting negative profit margins (-0.8) on a 5-year revenue CAGR of 11.3%. The stock has declined 33.1% over 12 months and sits 16.7% below its 200-DMA, while carrying a debt-to-equity ratio of 170.71 with debt trending upward.
P/E
—
Forward P/E
137.1
ROE
—
Debt / Equity
170.71
Profit Margin
-0.8%
Div. Yield
—
5Y ROE > 15%
2/5
5Y FCF > 0
4/5
Quality
35/100
News
8 headlines · 1 positive · 3 negative
Devyani International Q4 Results 2026 - Find Devyani International Q4 Earnings Result | DEVYANI Q4 results - Mint
Mint
Yum Restaurants seeks about $98 mn via Devyani stake sale - Check floor price per share - Dailyhunt
Dailyhunt
Devyani International to Host Q4 & FY2026 Investor and Analyst Conference Call on May 15, 2026 - scanx.trade
scanx.trade
Devyani International Names New Heads for Pizza Hut and Costa Coffee - Indian Retailer
Indian Retailer
Devyani International - Smallcap Shock: 10 stocks crashed up to 45% in CY26 so far. Are you holding any? - The Economic Times
The Economic Times
Recent context
- ·Yum Restaurants filed for a ~$98 mn block deal to reduce its Devyani stake, with floor pricing details reported in late April 2026 — a promoter-level block at a discount is a material liquidity event for minority shareholders to monitor.
- ·Q4 FY2026 results are pending; an investor and analyst conference call is scheduled for 15 May 2026, making the upcoming earnings release a near-term data point for assessing the pace of margin recovery.
- ·Devyani was named in an Economic Times list of smallcap stocks down up to 45% in CY26; the company also appointed new leadership for Pizza Hut and Costa Coffee verticals in April 2026.
Strengths
- +5-year revenue growth rate of 11.3% reflects consistent topline expansion in the organised QSR segment, even as margins have not yet turned positive.
- +FCF was positive in 4 of the available measurement years, indicating the business has periodically converted sales into cash despite elevated capital expenditure from network expansion.
- +Current price (₹118.47) is above the 50-DMA (₹112.22) with RSI at 55.3, showing near-term price stabilisation after a prolonged decline.
- +Forward PE of 137.07 with 23 analysts covering the stock reflects active institutional interest in the profitability recovery thesis, even as near-term reported numbers remain loss-making.
Weaknesses
- −Profit margin is currently negative (-0.8) with no trailing PE computable; forward PE of 137.07 prices in a full earnings recovery that has not yet materialised in reported financials.
- −Debt-to-equity of 170.71 is among the highest in the Consumer Goods peer set and is on a rising trend, creating refinancing and solvency risk in a rising-rate environment.
- −Stock is down 33.1% over 12 months and 38.0% from its 52-week high, remaining 16.7% below the 200-DMA, which has been a persistent ceiling throughout the decline.
- −Quality score of 34 ranks 4th of 6 Consumer Goods peers; ROE exceeded 15% in only 2 of the measured years, and consistency score of 39 reflects structurally thin profitability history.
Open questions
- ?At what level of store count and average unit volume does the QSR network reach operating leverage sufficient to sustain positive margins — and how does current unit economics compare to that threshold?
- ?How does a debt-to-equity of 170.71 on a rising trajectory affect the company's ability to fund new store openings without dilution or covenant breaches, particularly if the earnings recovery takes longer than the forward PE implies?
- ?Does the Yum Restaurants stake reduction signal a strategic shift in the promoter's long-term view of the India QSR opportunity, or is it a routine portfolio rebalancing — and what is the remaining promoter holding post-transaction?
- ?How does Devyani's revenue-per-store trend compare to listed peers such as Sapphire Foods and Westlife Foodworld, and does the 5-year revenue CAGR of 11.3% reflect market-share gains or primarily network expansion?
Peer comparison: Consumer Goods
Ranks 4 of 6 on quality| Symbol | Name | P/E | ROE | Quality |
|---|---|---|---|---|
| DEVYANI | Devyani International Ltd.You're viewing | — | — | 34 |
| Industry avg | across 5 peers | 80.0 | +19.6% | 37 |
| TRENT | Trent Ltd. | 86.5 | +27.1% | 49 |
| ETERNAL | Eternal Ltd. | — | +1.2% | 41 |
| DMART | Avenue Supermarts Ltd. | 95.9 | +12.9% | 37 |
| TITAN | Titan Company Ltd. | 73.4 | +37.1% | 34 |
| ASIANPAINT | Asian Paints Ltd. | 64.1 | — | 23 |
Technical state
Current price
₹118.47
SMA 50
₹112.22
SMA 200
₹142.18
RSI (14)
55.3 (neutral)
From 52w high
-38.0%
1Y return
-33.1%
3M return
-3.9%
50-DMA
Above
200-DMA
Below
Algorithmic support levels
Algorithmic resistance levels
Risk flags
- highProfit margin of -0.8 (negative) with no positive ROE on record; trailing PE is unavailable (not meaningful on negative earnings), while forward PE stands at 137.07 — implying profitability recovery is entirely priced into future expectations.
- highDebt-to-equity of 170.71 is extreme; debt trend is classified as rising, compounding solvency concerns in a capital-heavy QSR expansion model.
- highStock is down 33.1% over 12 months and 38.0% from its 52-week high, trading 16.7% below the 200-DMA (₹142.18 vs current ₹118.47) — below the long-term moving average for an extended period.
- mediumQuality score of 34 ranks 4th of 6 peers in the Consumer Goods sector; consistency score of 39 with FCF positive in only 4 of available years and ROE above 15% in only 2 years.
- mediumNews sentiment is negative (3 negative vs 1 positive out of 8 total); recent headlines include a promoter stake sale by Yum Restaurants (~$98 mn block) and inclusion in an Economic Times smallcap crash list (down up to 45% in CY26).
Cross-section contradictions
- Stock trades above its 50-DMA (₹118.47 vs ₹112.22, RSI 55.3 in neutral zone), suggesting near-term price stabilisation, yet it remains 38% below the 52-week high and 16.7% below the 200-DMA with negative profit margins — near-term momentum and medium-term structural pressure diverge sharply.
- Forward PE of 137.07 implies the market is pricing in a significant earnings recovery, yet current profit margin is -0.8 with no ROE history above 15% in recent years — a large gap between priced-in optimism and reported fundamentals.
For informational purposes only. Not investment advice. VivaTrades is not a SEBI-registered Investment Adviser or Research Analyst. Market data sourced from public feeds; consult a registered adviser before any investment decision.
Fundamentals & technicals: refreshed 24 Jun 2026 · refreshed daily at 01:00 IST
AI synthesis (narrative, snapshot, strengths/weaknesses, peer ranking): generated 12 May 2026 · rotates through NIFTY 500 every ~5 days