Devyani International Q4 FY25 Results: Loss Widens to ₹14.74 Crore on Higher Expenses
Devyani International Limited (DIL), one of India's leading quick-service restaurant (QSR) operators and the master franchisee for KFC, Pizza Hut, and Costa Coffee, reported a widened consolidated net loss of ₹14.74 crore in Q4 FY25.
The results reflect growing operational costs and strategic investments amid a competitive foodservice environment.
Key Financial Highlights – Q4 FY25
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Net Loss: ₹14.74 crore, compared to a loss of ₹7.47 crore in Q4 FY24 -
Revenue from Operations: ₹1,047.08 crore, up 38.7% year-on-year from ₹754.98 crore
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Total Expenses: ₹1,057.32 crore, compared to ₹724.77 crore in the same quarter last year
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EBITDA: ₹172.3 crore, marking a 14.4% increase year-on-year
Factors Behind the Wider Loss
Several factors contributed to the increased losses during the quarter:
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Rising Input Costs: Costs for key commodities like cheese and palm oil rose significantly, impacting margins.
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Employee Expenses: Higher staff costs due to expansion and inflationary pressures.
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Impairment Charges: A one-time impairment charge of ₹42.3 crore was recorded.
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Currency Fluctuations: Forex translation losses due to the devaluation of the Nigerian Naira impacted international operations.
Strategic Expansion and Future Outlook
Despite the challenging quarter, Devyani International is focused on long-term growth:
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Store Expansion: Opened 47 new outlets in Q4 FY25, taking the total count to 1,782 stores.
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International Growth: Expanded its presence in Southeast Asia with the acquisition of 283 KFC stores in Thailand earlier in the fiscal year.
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Partnerships: Entered a strategic partnership with PVR-INOX to develop food courts in shopping malls across India.
The company’s aggressive expansion strategy underscores its commitment to growth, even at the cost of short-term profitability. Management remains optimistic about the medium to long-term potential of the QSR segment in India and abroad.
Frequently Asked Questions (FAQs)
Q1. What led to the loss for Devyani International in Q4 FY25?
The loss was mainly due to increased operating expenses, including raw material and employee costs, as well as one-time impairment and forex translation losses.
Q2. How did revenue perform in this quarter?
Revenue grew by nearly 39% year-on-year, reflecting strong sales growth and new store additions.
Q3. What is the total number of outlets Devyani operates now?
As of March 31, 2025, Devyani International operates 1,782 stores across India and international markets.
Q4. What are the key growth strategies for the company?
The company is focusing on rapid outlet expansion, international acquisitions, and strategic partnerships to strengthen its market presence.
Q5. What is the outlook for the next fiscal year?
Devyani International expects continued growth in the foodservice sector and aims to improve profitability through scale, operational efficiencies, and enhanced brand visibility.
Published on : May 23, 2025
Uploaded by : PAVAN