Indian KFC operator slumps after reporting a second-quarter loss

Devyani International

07/11/2025 05:41

** Devyani International DEVY.NS, which operates KFC and Pizza Hut in India, falls 4.6% to 148.46 rupees

** Co reports second qtr loss of 219 million rupees ($2.49 million) vs profit of 170,000 rupees a year ago as fast-food demand remains muted

** Jefferies says weak quarter was a "sharp miss" of its forecasts

** Dolat Capital says increasing competition and Pizza Hut's slow offtake remain hurdle for profitability

** "Stock price has been flat for the last three years due to growth challenges, and we believe most of the risks are largely priced in now" analysts at Motilal Oswal say in a note

** At least four analysts cut FY27 EBITDA estimates

** Devyani still rated 'buy' on average by 23 analysts; median PT at 177 rupees -- data compiled by LSEG

** YTD, DEVY shares down ~18.2%

($1 = 87.8950 Indian rupees)

 (Reporting by Ananta Agarwal in Bengaluru)

 ((Ananta.Agarwal@thomsonreuters.com))