Devyani International Ltd. (DIL), the operator of quick-service restaurant (QSR) giants such as KFC and Pizza Hut in India, is preparing to expand its portfolio with a potential acquisition of a homegrown star — Biryani By Kilo (BBK).
In a regulatory filing, the company announced that its board will meet on April 24 to consider acquiring a controlling stake in Sky Gate Hospitality, the parent firm of BBK. Sky Gate also owns brands like Goila Butter Chicken, The Bhojan, and Get-A-Way.
Brokerages have responded enthusiastically to the news, citing the growing opportunity in India’s biryani and cloud kitchen market. Emkay Global Financial Services upgraded Devyani’s stock from Add to Buy, raising its target price by 18% to Rs 200, and valuing it at 30x FY27 EBITDA, up from 26x.
“The upgrade is driven by potential value creation through BBK’s acquisition and the expected rebound in India operations, with growth likely to return to mid-teen levels in FY26 from 7% in FY25,” Emkay noted.
Founded in 2016 in Delhi-NCR, BBK has grown to nearly 100 outlets across 45 cities, clocking a CAGR of 55% between FY19 and FY24, with FY24 revenue reaching Rs 300 crore. Analysts see this as a timely entry into a largely unorganised yet rapidly expanding delivery-first food segment.
