Devyani International Ltd

I am pleased to present the Annual Report of Devyani International t Limited (DIL) for the FY 2024-

This year was marked by steady progress, driven by strategic focus, disciplined execution, and resilience in a dynamic business environment. Amidst evolving market conditions and geo-political situations, we remained committed to creating long-term value for all stakeholders.

The Indian economy demonstrated notable resilience during FY 2024-25, even as global uncertainties persisted. Inflation moderated compared to the previous year, although discretionary demand particularly in the Quick Service Restaurant (QSR) segment remained somewhat muted in the first half with signs of recovery emerged during the festive season. While these macro undercurrents had a mixed impact on the food services sector, the long-term outlook remains robust, supported by structural drivers such as rising urbanization, an expanding middle class, increased disposable income and a digitally connected young population.

Eating out, once considered an occasional indulgence, is increasingly becoming a lifestyle choice, especially in Tier I and Tier II cities driven by the demand for hygienic, accessible, and branded food. As consumer habits evolve and convenience-led dining becomes more ingrained, we believe the organized QSR space will continue to grow meaningfully over the long term.

In this context, FY 2024-25 was a year of strong execution for DIL. We achieved a major milestone by crossing 2,000 stores in December 2024, a year ahead of our original FY26 target. During the year, we added 257 new stores, including 119 KFC, 65 Pizza Hut, and 41 Costa Coffee outlets. This expansion reflects the strength of our multi-brand, multiformat model and the trust placed in us by millions of customers every day.

As of March 31, 2025, our network stood at 2,039 stores across India, Nepal, Nigeria, and Thailand reinforcing our position as one of the largest QSR operators in the region. With a scalable platform and strong execution capabilities, DIL remains firmly on track to achieve its goals.

We reported strong growth with consolidated revenue increasing by 39% year-on-year to ' 49,511 million. EBITDA stood at ' 8,422 million, with margins at 17%. In India, growth was fueled by the continued expansion of our flagship brands into new cities and towns. These Brands now operate in over 280 cities, with 53% of stores in nonmetro locations, reflecting the depth of our reach across high-potential consumption clusters beyond the metros.

Looking ahead, we remain confident in the structural potential of the food services industry and are well- positioned to capitalize on emerging opportunities. We will continue to invest in innovation, digitalization, and operational excellence to build a future-ready organization and deliver sustained value to all stakeholders.

Over the past five years, we have outperformed the organized QSR industry, both in terms of revenue growth and store expansion. While the listed QSR industry registered a revenue CAGR of 29.6%, DIL delivered a significantly higher CAGR of 44.5%. Similarly, our store network expanded at a CAGR of 31%, compared to the industry average of 22.5%, a testament to the strength of our brands, operating model, and disciplined execution.

Our international operations delivered robust performance as well. In Thailand, we scaled our footprint to 306 KFC outlets, capitalizing on favorable consumer trends, high poultry consumption, and rising demand for quality QSR offerings. We remain optimistic about Thailand's long-term strategic contribution to our portfolio.

FY 2024-25 was also a pivotal year in the evolution of our brand portfolio. We welcomed 3 global brands - Tealive, New York Fries, and SANOOK KITCHEN through exclusive master franchise agreements for India.

These additions are well-aligned with global consumption trends and address critical whitespace in India's evolving QSR landscape. With them, we are well-positioned to attract new customer cohorts and further consolidate our leadership across segments.

In a strategic move, DIL has executed definitive agreements to acquire a controlling stake in Sky Gate Hospitality Private Limited ('Sky Gate') for three brands - 'Biryani by Kilo', 'Goila Butter Chicken', and 'The Bhojan'. Sky Gate operates over 109 outlets across 29 Indian cities and recently launched its first international outlet in the UAE. These strategic additions significantly enhance our "House of Brands" approach and will strengthen our presence in the Indian cuisine segment.

To support this next phase of growth, we continued to invest in technology, data-driven marketing, and customer engagement platforms. Operational efficiency also remained a top priority with focused initiatives around pricing optimization, food waste reduction, and supply chain agility. These efforts helped mitigate inflationary pressures and protect our margins.

Our focus will remain on scaling responsibly, investing in innovation, and delivering exceptional customer experiences. With a robust portfolio, strong execution capabilities, and a future-ready mindset, DIL is well- positioned to shape the next chapter of food service in India and beyond.

On behalf of the Board of Directors, I would like to extend heartfelt gratitude to all our stakeholders, employees, franchise partners, customers, and investors for your continued trust and support. Your belief in our vision inspires us to push boundaries, build with purpose, and deliver on our promise of excellence.