Devyani International shares extend surge after 'positive start' to CY26

Shares of Devyani International rose over 5 per cent on Thursday after analysts remained positive on the stock after it reported its third-quarter earnings for the current financial year (Q3-FY26). 

 

The company's stock rose as much as 7.81 per cent during the day to ₹132.8 per share, a day after it rose 6 per cent. The stock pared gains to trade 6.7 per cent lower at ₹131.5 apiece, compared to a 0.30 per cent decline in Nifty 50 as of 10:26 AM. 

 

Shares of the company rose to the highest level since January 19 this year and currently trade at 1.3 times the average 30-day trading volume, according to Bloomberg. The counter has fallen 11 per cent this year, compared to a 2 per cent advance in the benchmark Nifty 50. Devyani International has a total market capitalisation of ₹16,212.27 crore.   READ LATEST STOCK MARKET UPDATES TODAY LIVE

 

Devyani International Q3 results 

In Q3FY26, Devyani International reported a net loss of ₹10.3 crore for the quarter, compared to a loss of ₹0.5 crore in the same period last year. The company's India operations grew 12.1 per cent year-on-year (Y-o-Y), while consolidated revenues reached ₹1,441 crore, growing 11.3 per cent Y-o-Y.  

  Devyani International said its Board has approved the acquisition of around 11.4 per cent additional equity stake in Sky Gate Hospitality Private Limited (Sky Gate) from the Promoters/ Founders of Sky Gate for a total consideration of ₹57.5 crore.

Analysts on Devyani International earnings 

Emkay Global said the company's Q3 topline performance remained muted, with same-store sales growth (SSG) declining across most formats. However, it noted early signs of recovery in January 2026, with most formats, excluding Pizza Hut, turning SSG positive. 

 

Store additions also gathered momentum during the quarter, with 54 new KFC outlets added, compared with a full-year target of 110–120 stores, reinforcing confidence in the category’s long-term growth potential, the brokerage said.  ALSO READ | BSE Oil & Gas index hits 52-wk high; what's driving ONGC, OIL India stocks? 

Motilal Oswal said the company has made a positive start to the calendar year 2026 and it has largely retained its Ebitda estimates for FY27 and FY28. The brokerage said the proposed merger of Devyani International and Sapphire Foods is expected to unlock meaningful scale benefits, improve unit economics through operating leverage and revised commercial terms, and strengthen execution across brands and geographies. 

 

Antique Stock Broking said it has factored in a revenue and pre-Ind AS Ebitda CAGR of 13 per cent and 15 per cent, respectively, over FY25 to 28, aided by a favourable base. However, the brokerage cautioned that the outlook remains challenging due to weak consumer sentiment impacting gross margins and operating leverage. 

 

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