Devyani International and Sapphire Foods merger set, plan to create fast food giant in India?Devyani International and Sapphire Foods merger set, plan to create fast food giant in India?

Introduction

Two leading quick-service restaurant companies approved a merger, combining KFC, Pizza Hut, and emerging brands, aiming for national scale, operational synergies, and annual benefits of ₹210-225 crore.

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Share price movement of Devyani International

On January 2, 2026, Devyani International Ltd opened at ₹156.90, up 6.00% from its previous close of ₹147.95. The stock reached a high of ₹159.45 (7.77%) and a low of ₹149.85. By 11:04 AM, it traded at ₹150.55, a 1.76% increase, with a market cap of ₹18,560.89 crore.

Share price movement of Sapphire Foods

On January 2, 2026, Sapphire Foods India Ltd opened at ₹262.70, up 0.53% from its previous close of ₹261.35. The stock reached a high of ₹262.70 (0.53%) and a low of ₹246.80. By 11:11 AM, it traded at ₹257.05, a 1.65% decline, with a market cap of ₹8,261.15 crore.

Devyani International & Sapphire Foods Approve Merger

Devyani International Limited and Sapphire Foods India Limited approved a scheme to merge SFIL into DIL through a share-swap mechanism. The swap ratio is 177 DIL shares for 100 SFIL shares.

The merger requires approvals from stock exchanges, Competition Commission of India, NCLT, shareholders, and creditors. The process is expected to take 12 to 15 months for completion.

Post-merger, DIL will become one of India’s largest quick-service restaurant operators, combining KFC, Pizza Hut, and emerging brand operations under a single entity.

Yum! Brands approved the merger and agreed to enhanced waivers, long-term alignment, and transfer of 19 KFC stores in Hyderabad to DIL. DIL will pay a one-time license fee.

The merger is expected to generate annual synergies of ₹210–225 crore from the second full year. Integration, including operational and financial consolidation, will complete within 15 to 18 months.

Stock performance of Devyani International for Period of 1 week, 6 months, and 1 year

Devyani International Limited delivered a 1.79% return over the past week. It declined by 14.8% in the past six months and fell 22.0% over the past year.

Stock performance of Sapphire Foods for Period of 1 week, 6 months, and 1 year

Sapphire Foods India Ltd delivered a 4.26% return over the past week. It declined by 22.0% in the past six months and fell 23.1% over the past year.

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Shareholding pattern of Devyani International

Particulars	Sep 2025	Jun 2025	Mar 2025
Promoter	61%	63%	63%
FII	6.60%	9.40%	10.50%
DII	19.80%	18.10%	16.90%
Public	12.30%	9.90%	10.00%

Shareholding pattern of Sapphire Foods

Particulars	Sep 2025	Jun 2025	Mar 2025
Promoter	26%	26%	26%
FII	31.30%	31.60%	30.40%
DII	37.30%	37.90%	38.50%
Public	5.40%	4.50%	5.00%

About Devyani International

Devyani International Limited (NSE: DEVYANI) operates over 2,000 quick-service restaurants across India, Thailand, Nigeria, and Nepal. It is the largest Yum! Brands franchisee and sole Indian franchisee for multiple international brands.

About Sapphire Foods

Sapphire Foods India Limited (NSE: SAPPHIRE) operates KFC and Pizza Hut restaurants across India and Sri Lanka, including dine-in, takeaway, and delivery formats, holding franchise rights in multiple states.

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time. The securities quoted are exemplary and are not recommendatory.

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