Buy Devyani International; target of Rs 180: Motilal Oswal

Motilal Oswal's research report on Devyani International

Devyani International’s (DEVYANI) consolidated revenue grew 13% YoY in 2QFY26. The India revenue was up 12% YoY, led by the Skygate acquisition and 16% YoY store expansion. Organic India's revenue growth was ~5%. Demand was impacted due to both Shraavana and Navaratri occurring in the same quarter, coupled with unseasonal rains, particularly in the eastern region during the latter half of September. The company has not seen a material demand uptick in Oct’25 as well.

Outlook

We reiterate our BUY rating and value India business at 35x EV/EBITDA (Pre IND-AS) and international business at 20x EV/EBITDA (pre-IND-AS) on Sep’27E to arrive at our TP of INR180.