Devyani Q1 FY27: revenue +16% YoY, consolidated PAT swings to ₹17 Cr on margin gains

Devyani International's consolidated Q1 FY27 print is a margin-led recovery on a tiny profit base. Revenue from operations rose 16.5% YoY to ₹1,580.5 Cr and profit for the period jumped to ₹17.1 Cr (of which ₹14.6 Cr attributable to owners) from just ₹2.2 Cr a year ago — a near-8x gain that looks dramatic only because the year-ago base was thin. The more meaningful signal is margins: operating margin expanded to ~16.2% (from ~15.2% YoY and ~15.3% last quarter) and net margin to ~1.1% (from 0.16% YoY), as revenue outgrew cost of materials and other expenses. Sequentially it is a clean turnaround — Q4 FY26 was a ₹9.8 Cr consolidated loss — though Q1 is not a peak-seasonal quarter for QSR, so YoY remains the fairer read.

Standalone tells a softer story: revenue up 8.9% YoY to ₹998.5 Cr and PAT ₹8.5 Cr (+37%). The gap between +16.5% consolidated and +8.9% standalone topline growth is the Sky Gate Hospitality consolidation (acquired June 2025, now wholly owned) plus international operations, which are pulling the group line ahead of the domestic KFC/Pizza Hut base — worth flagging since both numbers are public.

The stock went into the print at ₹118.92, up 6.8% over the past month of trading.

For context: this is the second-highest quarterly PAT of the last 6 quarters; PAT has now risen for 3 consecutive quarters; revenue is at a 6-quarter high.

No exceptional items this quarter — clean YoY compare (FY26 one-offs sat in the full-year, not Q1)

Consolidated EPS ₹0.12 (basic), vs ₹0.03 YoY

Against street, no Q1-specific consensus was published, but analysts model 15–18% FY27 revenue growth and 15–20% PAT growth for well-placed QSR names; the +16.5% consolidated topline lands squarely inside that band, so the print reads inline rather than a surprise. Management's last-call framing — 200–225 net new standalone stores in FY27, 'stronger profitability,' and the Sapphire Foods merger on track — is directionally confirmed on the profitability axis this quarter; the notes reiterate the Sapphire scheme (appointed date 1 April 2026, approvals pending) and record the NCLT First Motion Order (23 July 2026) for the Sky Gate amalgamation, alongside the stake increase in DID to 56.7% during the quarter. The synergy timeline (₹210–225 Cr annual, per street) from Sapphire remains the key unquantified catalyst not yet in these numbers.