India’s quick service restaurant landscape is set for a major consolidation as Devyani International and Sapphire Foods India move to merge their operations, creating the country’s largest single QSR platform by store count. The transaction, disclosed through stock exchange filings, is expected to take effect from April 1, 2026, subject to regulatory approvals.
Once completed, the combined entity will operate more than 3,000 restaurants across India and select international markets, significantly strengthening its scale in the highly competitive fast food segment. Both companies are key franchise partners of Yum! Brands, operating KFC and Pizza Hut outlets across the region.
Under the proposed share swap arrangement, Devyani International will issue 177 of its shares for every 100 shares held in Sapphire Foods. The merger is expected to unlock annual cost and operating synergies of around ₹210 to ₹225 crore by the second full year after integration, driven by efficiencies in procurement, supply chain, marketing and shared services.
Devyani International, controlled by RJ Corp chairman Ravi Jaipuria, is already Yum! Brands’ largest franchisee in India, with more than 2,000 outlets across India, Thailand, Nigeria and Nepal. Beyond KFC and Pizza Hut, its portfolio includes Costa Coffee, Vaango, Biryani By Kilo, Goila Butter Chicken and other emerging food brands.
Sapphire Foods, backed by Samara Capital, operates over 1,000 restaurants across India and Sri Lanka, adding a strong presence in the island nation to Devyani’s existing international footprint. Post-merger, Devyani will hold unified franchise rights for KFC and Pizza Hut across the Indian market, simplifying brand management and expansion planning.
The companies have indicated that full operational integration is likely to be completed within 15 to 18 months. As part of the broader transaction, Devyani will also take over 19 KFC restaurants currently operated by Yum! India in Hyderabad and make a one-time payment towards licence and approval fees.
Management said the merged platform will prioritise faster KFC expansion, a turnaround strategy for Pizza Hut, and scaled investment behind newer homegrown brands, positioning the group for sustained growth in India’s evolving QSR market.
