Brokerages cut Devyani International’s target price after the company posted weak third-quarter numbers for its India business.

Devyani International missed topline and Ebitda estimates of JPMorgan while it met consensus estimates, the brokerage said in a note. Same-store sales growth of KFC lagged Sapphire due to low penetration in metro cities. Pizza Hut also witnessed a muted quarter with low same-store sales growth and margin.

However, JPMorgan believes same-store sales growth in India will likely inch up with recovery from external brand impact, acceleration of underlying brand demand, and undemanding base. India margins have bottomed out.

Devyani International’s three new India franchises—New York Fries, Tealive, and Sanook Kitchen will be launched in April this year. Food court presence after joint venture with PVR Inox is scaling up, according to JPMorgan.

The brokerage cut the target price to Rs 195 from Rs 200. The current target price implied a 14.70% upside from Tuesday’s closing price. JPMorgan has Overweight rating on the stock.

Devyani International posted a 49% growth in consolidated revenue as earnings from international businesses supported. Meanwhile, the company achieved its store expansion target of 2,000 before its March 2025 guidance. Overall its gross margin fell 192 basis points on the year and Ebitda fell 41 basis points year on year basis.

Thailand business witnessed low double digit growth. Devyani International has three launches planned in this segment. Management said that Thailand business may grow 11–12% in financial year 2026 because of estimated 3–4% growth in same store sales, and 8–9% growth in new store addition.

Nevertheless, CLSA cut the target price to Rs 188 from Rs 196, while it maintained Outperform rating.

Emkay Global Research remained cautious before turning constructive on Devyani International. It kept ‘Reduce’ rating on the stock with target price to Rs 170 apiece, which is same as Tuesday’s closing price.

. Read more on Earnings by NDTV Profit.CLSA and JPMorgan cut Devyani International’s target price, while Emkay Global Research remained cautious on the stock.  Read MoreQuarterly Earnings, Markets 

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