**Devyani International: Q3 FY26 Market Brief** **Financial Performance** Devyani International Ltd (DIL) reported a widened consolidated **net loss of ₹109.78 crore** for the quarter ended December 2025 (Q3 FY26), compared to a loss of ₹76.46 crore a year ago. Despite the bottom-line pressure, top-line growth remained resilient. Revenue from operations climbed **11.31% YoY** to **₹1,440.9 crore**, driven by steady demand and footprint expansion. **Operational Highlights** The company’s diversification strategy is yielding results. A key positive was the **Biryani by Kilo** business achieving **breakeven**, marking a faster-than-anticipated turnaround for the acquired brand. DIL continued its aggressive expansion, adding **95 net new stores** in the quarter, taking its total store count to **2,279** across domestic and international markets. **Strategic Restructuring** Management has initiated a correction course for its Pizza Hut portfolio. The company is rationalizing loss-making stores to improve fleet efficiency, with new openings now strictly calibrated to replace underperforming assets. Additionally, a leadership transition is underway, with **Manish Dawar** set to take over as CEO starting April 1, 2026. **Market Reaction** Investors looked past the widening loss, focusing instead on the revenue growth and margin improvements. The stock surged **6.06%** to close at **₹123.30** on the BSE, reacting positively to the operational milestones and the recently announced merger roadmap with Sapphire Foods.