Devyani International Limited (DIL) is set to create a $934 million QSR powerhouse through a proposed merger with Sapphire Foods India. The strategic deal highlights DIL’s pivot toward operational scale and margin protection amid slower consumer demand in FY2025-26. While shifting focus to tech-driven efficiencies and cautious expansion, DIL still maintained solid financials, reporting revenue of ₹56,115 million and an EBITDA of ₹8,554 million (15.2% margin), capped by late-year demand growth in its KFC operations as noted by Chairman Ravi Jaipuria.
There is an overall increase in the chain’s outlet count from 2,039 to 2,256. The total number of outlets in India has increased from 1,664 to 1,857, and KFC’s outlets have increased from 696 to 783. There is also an increase in Pizza Hut outlets from 630 to 639. One of the biggest developments was DIL’s planned merger with Sapphire Foods India. Once approved, the combined company will have more than 3,000 restaurants and annual revenue of nearly $1 billion, making it one of the world’s largest Yum! Brands franchise partners.
DIL is also making huge investments in technology. In India, more than 80 percent of the dine-in restaurants of KFC have self-ordering kiosks. On the backend, the company DIL has made use of Artificial Intelligence and Data Analytics for enhancing the experience of customers, managing stocks and managing schedules of employees. DIL also made changes to its top-level management team on April 1, 2026, where Manish Dawar became CEO, and Anupam Kumar became CFO.
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DIL sees the organised food services market in India continuing to grow, with the company’s improved performance, increased brand range, and proposed merger facilitating sustained growth in the future.
