Devyani International shares in focus on Q2 net loss, analysts retain bullishness

Shares of the firm have fallen around 3.6 percent over the past 12 months, underperforming the benchmark index Nifty 50.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Pizza Hut and KFC franchise owner Devyani International will see its stock price in focus on November 12 after it reported a net loss for the quarter ended September.

Devyani International reported a consolidated net loss of Rs 4.92 crore in the second
quarter against a net profit of Rs 35.82 crore in the corresponding quarter of the previous fiscal year.

The QSR operator reported its revenue from operations came in at Rs 1,222.15 crore, up 49.2 percent on-year, from Rs 819.47 crore in the September quarter last year.

Follow our market blog to catch all the updates

Devyani's Indian business posted another weak quarter in Q2FY25, with both KFC and Pizza Hut experiencing declining SSSG. This negative trend has begun to erode profit margins. The company has expanded into new categories to fuel future growth, though immediate financial impact is limited, said Nuvama Institutional Equities.

However, the brokerage kept its buy rating unchanged, with a target price of Rs 208 on the player.

"We believe the addition of three new franchise brands seems to be a positive, given the low capex requirements due to small store size. The firm expects bubble tea, French fries and the Thai food category to grow higher than the QSR industry, creating a larger brand portfolio with better efficiencies and bargaining power in the ecosystem," noted Elara Capital.

The brokerage said it also expect a recovery in H2, led by menu innovation/ marketing initiatives and festive season. It maintained its buy call, with a price target of Rs 215 per share.

Shares of the firm have fallen around 3.6 percent over the past 12 months, underperforming the benchmark index Nifty 50, which has risen 25 percent during the same time period.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.