Why Did KFC Operator Devyani International Report a Q4 Loss of Rs 14.74 Crore?
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Synopsis
In a surprising turn of events, Devyani International Limited, known for its KFC and Pizza Hut brands, has reported a widening net loss of Rs 14.74 crore in Q4 FY25. Despite this setback, the company has shown significant annual growth, raising questions about its future strategy and performance.
Key Takeaways
- Devyani International reported a Q4 loss of Rs 14.74 crore.
- Revenue from operations showed a 15.81% growth year-on-year.
- Annual revenue reached Rs 4,951 crore, a 39.2% YoY increase.
- Opened 257 new stores in FY25.
- Entered new food categories and partnerships to enhance growth.
Mumbai, May 23 (NationPress) Devyani International Limited, which operates well-known quick service restaurant (QSR) brands such as KFC, Pizza Hut, and Costa Coffee, reported a net loss of Rs 14.74 crore for the fourth quarter (Q4) of FY25. This loss is an increase from Rs 7.47 crore experienced in the equivalent quarter of the prior financial year (Q4 FY24), as per the company's filing with the stock exchange.
The revenue generated from operations during Q4 reached Rs 1,212.59 crore, reflecting a growth of 15.81 percent compared to Rs 1,047.08 crore in Q4 FY24.
However, the revenue witnessed a 6.32 percent decline compared to the previous quarter (Q3 FY25), which had revenue of Rs 1,294.4 crore.
On the other hand, the company's overall expenses reduced sequentially, amounting to Rs 1,247.91 crore in Q4, down from Rs 1,294.8 crore in Q3, showing a decrease of 3.62 percent.
According to its stock exchange filing, the income for the quarter was Rs 1,225.78 crore.
Despite the quarterly loss, the company demonstrated strong annual performance. For FY25, Devyani International reported consolidated revenue of Rs 4,951 crore, indicating a remarkable 39.2 percent year-on-year (YoY) growth.
This robust growth was primarily fueled by the acquisition of KFC outlets in Thailand and ongoing store expansion across India.
The company's EBITDA for the fourth quarter was reported at Rs 187 crore, marking a significant 43 percent increase on a yearly basis.
For the entire financial year, the EBITDA margin stood at 17 percent in FY25, with absolute EBITDA experiencing a 29.1 percent growth compared to FY24.
Throughout FY25, Devyani launched 257 net new stores, increasing its total count to 2,039. This figure is lower than the 539 net new stores opened in FY24, which included 283 KFC locations in Thailand acquired in January 2024.
In April, the company diversified into a new food segment by acquiring Sky Gate Hospitality, the parent company of Biryani By Kilo.
Furthermore, it announced partnerships with three international brands—New York Fries, Tealive, and Sanook Kitchen—to enhance its overall portfolio.
Meanwhile, shares of Devyani International experienced volatility on Friday, trading around Rs 180.58 on the National Stock Exchange (NSE).
Point of View
We recognize the complexities faced by companies like Devyani International. Despite a disappointing quarterly loss, the overall annual growth showcases the resilience and potential of the brand. This situation warrants a careful examination of their strategies moving forward, as they navigate challenges and opportunities in a competitive landscape.
NationPress
08/06/2025
Frequently Asked Questions
What caused Devyani International's loss in Q4 FY25?
The loss was attributed to a combination of factors, including increased operational costs and a decline in revenue compared to the previous quarter.
How did Devyani's performance compare year-on-year?
Despite the quarterly loss, Devyani International reported a remarkable 39.2% year-on-year growth in consolidated revenue for FY25.
What new ventures has Devyani International undertaken?
In April, Devyani acquired Sky Gate Hospitality and entered partnerships with international brands like New York Fries and Tealive.
What was Devyani's EBITDA for Q4 FY25?
Devyani's EBITDA for the fourth quarter stood at Rs 187 crore, reflecting a 43% increase from the previous year.
How many new stores did Devyani open in FY25?
Devyani opened 257 net new stores in FY25, bringing its total to 2,039.
