Devyani International Vs Sapphire Foods – Which is Better?

Fast food has become a huge part of our daily lives, whether it’s a quick lunch at KFC, a pizza party at Pizza Hut with friends, or a cheeky Taco Bell run. But have you ever wondered who runs all these popular chains in India?

That’s where Devyani International and Sapphire Foods come in. These two companies are the powerhouses behind your favourite quick-service restaurants, operating hundreds of outlets across India and even overseas.

In this blog, we’ll break down who they are, how they got started, and how they stack up against each other financially. Think of it as a behind-the-scenes look at the business of burgers, pizzas, and beyond!

Devyani International – An Overview 

Devyani International Ltd. (DIL) is one of the biggest names in India’s quick service restaurant (QSR) space. If you’ve ever grabbed a bite from KFC, Pizza Hut, or Taco Bell in India, chances are it was operated by them! They’re one of the largest franchisees of Yum! Brands in the country and also run some homegrown food brands like Vaango, The Food Street, and Masala Twist.

A Quick Look at Their Journey

• Started in 1991, Devyani International is part of the RJ Corp Group, headed by Ravi Jaipuria, a major player in the food and beverages industry.
  
• They teamed up with Yum! Brands early on, bringing Pizza Hut and later KFC to Indian diners.
  
• In 2011, they launched Vaango, their own South Indian vegetarian restaurant chain.
  
• Over the years, they expanded outside India too, you’ll find their outlets in Nepal and Nigeria.

• Currently, the company operates 941 KFC restaurants, 572 Pizza Hut outlets and 179 Costa Coffee stores in India.
  
• In 2021, they went public with a highly successful IPO, and their shares were listed on the NSE and BSE.
  
• Since then, they’ve been growing fast, opening new outlets in big cities and small towns alike, and putting a lot of focus on online orders and delivery.

Sapphire Foods – Overview 

Sapphire Foods is one of the big names behind some of your favourite quick-service restaurants in India and nearby countries. They run a large number of KFC, Pizza Hut, and Taco Bell outlets across India, Sri Lanka, and the Maldives. So, if you’ve ever enjoyed a crispy bucket of chicken or a cheesy slice of pizza, there’s a good chance Sapphire Foods was behind it.

A Quick Look at Their Journey

• The company was initially incorporated as Samarjit Advisors Pvt. Ltd in 2009, but was later renamed as Sapphire Foods in 2015.
  
• In 2015, the company made a big move by acquiring over 270 KFC and Pizza Hut stores in India and Sri Lanka.
  
• Since then, they’ve grown fast, opening restaurants in more than 106 cities and spreading to places like Sri Lanka and the Maldives too.

• Currently, the company operates 429 KFC restaurants and 319 Pizza Hut outlets in India.
  
• In 2021, they went public, and their shares were listed on the Indian stock markets.

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Comparative Study: Devyani International vs. Sapphire Foods

Particulars	Devyani International	Sapphire Foods
Current Price	₹177	₹316
Market Capitalization (₹ Crores)	21,351	10,167
52-Week High	₹223	₹401
52-Week Low	₹130	₹242
FII Holdings as of March 2025	10.46%	30.42%
DII Holdings (as of March 2025)	16.87%	38.51%
Book Value	₹9.66	₹42.4
PE Ratio	1,592	413

Financial Statements Comparison of Devyani International and Sapphire Foods 

Income Statement 

Particulars	Devyani International	Sapphire Foods
Total Income	3,588	2,627
Total Expenditure	3,398	2,456
EBIT	190	170
Net Profit	-9	51

Balance Sheet

Particulars	Devyani International	Sapphire Foods
Current Liabilities	911	444
Non-Current Liabilities	2,673	1,056
Current Assets	486	363
Non-Current Assets	4,446	2,477
Equity Share Capital	120	64
Reserves & Surplus	910	1,275

Cash Flow Statements

Particulars	Devyani International	Sapphire Foods
Cash Flow from Operating Activities	592	448
Cash Flow from Investing Activities	-1,550	-186
Cash Flow from Financing Activities	889	-212

Key Performance Indicators (KPIs)

Particulars	Devyani International	Sapphire Foods
Basic EPS (₹)	0.39	8.30
Operating Profit Margin (%)	8.27	6.58
Net Profit Margin (%)	-0.27	2
Return on Equity (%)	4.48	3.94
Return on Capital Employed (%)	7.31	7.13
Debt-to-Equity (x)	0.86	0.02

Devyani International vs Sapphire Foods: Which Company is Better? 

Honestly, it depends on what you’re looking at.

If we’re talking size and revenues, Devyani International definitely has the edge. It runs more outlets, makes more money, and has a few extra brands under its belt. It’s also been in the game longer, which shows in its wider reach and stronger numbers. However, the business reported a net loss in March 2024.

But Sapphire Foods isn’t far behind. It’s growing steadily, runs high-performing outlets, and has a solid presence in international markets like Sri Lanka and the Maldives. It seems to focus more on quality over quantity and is playing the long game.

So, is one better than the other? 

Devyani is winning on scale and operating margins, and Sapphire has a significantly higher EPS. It is hard to pick one as both companies have long-term potential if you’re betting on India’s growing appetite for fast food. 

Inference:

1. Devyani operates more outlets across countries, which reflects in its higher revenue.
   
2. Sapphire is more focused on efficiency and operates stores in select international markets like Sri Lanka and the Maldives.
   
3. Devyani International posted a net loss of ₹9 crores in March 2024, in contrast to a net profit of ₹51 crores for Sapphire Foods.
   
4. Both companies are strong franchise operators for Yum! Brands, but Devyani also operates some in-house brands, which gives the company more diversification.

Based on the above information, deciding between the two companies for investment can be a tough decision and it is advised to consult a financial advisor before investing.

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Conclusion 

Both Devyani International and Sapphire Foods are doing a great job serving millions of customers across India and beyond. While Devyani is ahead in terms of revenues and number of outlets, Sapphire is playing it smart with a focus on growth and efficient operations.

At the end of the day, whether you’re grabbing a crispy KFC bucket or biting into a cheesy Pizza Hut slice, you’re enjoying the results of two well-run companies working hard behind the scenes. So next time you’re at one of these places, you’ll know a bit more about the business that’s serving you. When it comes to selecting between the two, it can be a tricky decision and it is advised to consult a financial advisor before investing.

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