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Sapphire Foods India Limited (SFIL) has announced its merger with Devyani International Limited (DIL) through a share swap. Under the proposed terms, 177 shares of DIL will be issued for every 100 shares of SFIL. This strategic move aims to create one of the largest quick-service restaurant (QSR) operators in India, leveraging economies of scale and operational synergies. The merger is expected to result in a stronger balance sheet to support accelerated expansion and a wider investor base with enhanced liquidity.

The transaction is subject to customary approvals, including those from stock exchanges, SEBI, CCI, NCLT, creditors, and shareholders. The appointed date for the merger is proposed as April 1, 2026, with the entire process anticipated to take approximately 12 to 15 months to complete. Following the merger, the registered offices of both companies will be relocated to Haryana. Yum! Brands has expressed full support for the deal, viewing India as a high-priority market for the DIL partnership. Key focus areas for the merged business include expanding KFC and strengthening Pizza Hut operations, alongside growing the non-Yum portfolio. DIL will also fully manage Pizza Hut operations, including marketing, technology, and supply chain, with phased transitions for KFC and Pizza Hut technology and supply chain capabilities.

Additionally, DIL will acquire 19 KFC outlets in Hyderabad currently operated by Yum! India and will pay a one-time fee to Yum! India for merger approval and license for additional territories. The investor presentation highlights pro-forma financials for the merged entity, showcasing significant combined revenues, EBITDA, and gross profit. The merged business will benefit from improved geographical diversification, centralized procurement, cohesive brand campaigns, reduced corporate overheads, and a unified tech platform to drive growth. The presentation also provides an overview of both entities and their respective brand portfolios, including KFC, Pizza Hut, and other franchise and homegrown brands.