Devyani International Reports Wider-Than-Expected Q4 Loss Amid Revenue Miss

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Devyani International Ltd., India’s largest franchisee for KFC, Pizza Hut, and Costa Coffee, has reported its Q4 FY25 financial results, revealing a wider-than-expected net loss and lower-than-estimated revenue. The company posted a consolidated revenue from operations of ₹12.13 billion, falling short of the IBES estimate of ₹12.54 billion. Additionally, Devyani International recorded a net loss of ₹147.4 million, significantly exceeding the IBES projected loss of ₹46 million.

Key Highlights:

Revenue Miss: Devyani International reported ₹12.13 billion in revenue, below the IBES forecast of ₹12.54 billion.
Larger Net Loss: The company posted a net loss of ₹147.4 million, far exceeding the IBES estimate of ₹46 million.
Operational Challenges: Rising input costs and weaker consumer demand contributed to the profitability decline.
Market Reaction: Investors are closely monitoring the company’s cost-cutting measures and strategic initiatives to improve margins.
Industry Outlook: The quick-service restaurant sector remains competitive, with inflationary pressures impacting profitability.

Devyani International continues to expand its store network, but the latest financial results highlight both growth opportunities and profitability challenges. The company is expected to focus on cost optimization and market expansion to navigate industry fluctuations.

Source: Moneycontrol, Economic Times, CNBC-TV18