Devyani International Ltd Q1 FY27 Results Analysis: PAT Swings to Profit, EBITDA Margin Expands 102 bps

Devyani International Ltd's Q1 FY27 numbers came in mixed, with revenue of Rs. 1,580.52 Cr (+16.47% YoY) and PAT growth of +667.68% YoY. Here's a quick read of what worked, what to watch, and what management said.

Quarter Snapshot

Devyani International reported solid Q1 FY27 results with 16.5% revenue growth and 102bps EBITDA margin expansion, driven by cost management and operating leverage. PAT swung to a profit of Rs.17.1 Cr, partly aided by a positive contribution from subsidiaries. The Sky Gate amalgamation and Sapphire merger are progressing, providing near-term catalysts, though no formal guidance was issued for the year.

Key Investment Insights

Key Positives

• Revenue grew 16.5% YoY to Rs.1,580.52 Cr.
• EBITDA margin expanded 102 bps YoY to 16.12%.
• PAT increased to Rs.17.10 Cr from Rs.2.23 Cr YoY (up 667%).
• Subsidiaries contributed positively to group PAT, swinging from -Rs.2.52 Cr to +Rs.6.15 Cr.
• NCLT First Motion Order received for Sky Gate amalgamation, a key milestone.

Risk Factors

• YoY revenue growth decelerated to 16.5% from 18.5% in Q4 FY26.
• D&A grew 20.5% YoY, outpacing revenue growth, which may pressure future margins if not offset by higher revenue.