Thank you for patiently holding. The conference for Devyani International will begin shortly. Please stay connected. Please do not disconnect. Ladies and gentlemen, good day and welcome to the Devyani International's earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and anyone who wishes to ask a question may enter star and one on the touchstone phone. To remove yourself from the queue, please enter *2. Should you need assistance during the conference call, please signal an operator by pressing * then 0 on the touchstone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Anoop Poojari from CDR India. Thank you and over to you, sir. Thank you. Good afternoon, everyone, and thank you for joining us on Devyani International's Q4 FY2025 earnings conference call. We have with us Mr. Ravi Jaipuria, Non-Executive Chairman of the company; Mr. Raj Gandhi, Non-Executive Director; Mr. Virag Joshi, CEO and Whole-Time Director; and Mr. Manish Dawar, CFO and Whole-Time Director of the company. We will initiate the call with opening remarks from the Chairman, followed by key financial highlights by the CFO. Thereafter, we will have the forum open for a question-and-answer session. Before we begin, I would like to point out that some statements made in today's call may be forward-looking in nature, and a disclaimer to this effect has been included in the results presentations shared with you earlier. I would now request Mr. Ravi Jaipuria to make his opening remarks. Good afternoon, everyone, and thank you for joining us today. I'm pleased to welcome you to Devyani International's post-results earnings conference call to discuss our performance for the fourth quarter and financial year 2025. The previous financial year was a challenging one, marked by several headwinds, including a slowdown in GDP growth, input inflation, weak urban consumption, and shifting geopolitical dynamics. However, the union budget 2025 aims to counter some of these pressures by attempting to boost consumption through tax relief measures targeted at individuals. Despite these headwinds, we are pleased to report that DIL continues to demonstrate strong momentum in its growth journey, both organically and through strategic acquisitions. During 2025, DIL reported consolidated revenue of INR 4,951 crore, registering a robust 39.2% year-on-year growth. This performance was primarily driven by the strategic acquisition of KFC stores in Thailand and supported by ongoing store expansion in India. The company's EBITDA margin stood at 17%, while absolute EBITDA increased by 29.1% over 2024. Most recently, we announced the acquisition of Sky Gate Hospitality, owners of Biryani by Kilo and other brands, making our entry into another high-potential food category. This will further strengthen our overall brand portfolio and deepen our well-laid-out strategy. During the year, we also tied up with three international brands, that is, New York Fries, Tealive, and Sanook Kitchen. We are proud to share that we have recently opened the first New York Fries store in Mumbai. This marks the beginning of our expansion with the new brands, and you will see more coming in the current year. Our store expansion strategy has been instrumental in driving growth and reinforcing our market leadership by following a balanced approach of scaling the footprint while maintaining rigorous store-level performance standards. We successfully added 257 new stores during full year 2025, elevating our total presence to 2,039 stores as of March 31, 2025. We have achieved our store rollout target across all brands, reflecting disciplined execution and strong execution capabilities. Our core brands, KFC, Pizza Hut, and Costa, remained at the forefront of this expansion, collectively contributing 204 net new stores, thereby further strengthening the presence of our brands. The store growth not only extends our reach to the new consumers but also serves existing ones better, enhances the operational synergies, and brand equity across markets. On the market front, our brand campaign, Taste the Epic, was recognized as an innovative and impactful campaign at the ACEF Global Customer Engagement Awards. Over the past five years, DIL has outperformed the organized QSR market in terms of both revenue growth and new store openings. While the revenues for the listed QSR industry grew at a CAGR of 29.6%, DIL achieved a significantly higher CAGR of 44.5%. The industry store count expanded at a CAGR of 22.5%. Against that, DIL recorded a robust store growth of 31%. To conclude, despite a subdued demand environment, DIL has remained focused on expansion while actively exploring new and innovative ways to engage with consumers. As one of the leading players in the Indian QSR sector, we are well-positioned to capitalize on anticipated recovery in the industry, with market conditions expected to improve, driven by union budget initiatives focused on agriculture and rural prosperity, along with increased consumption supported by tax relief measures. We remain optimistic about the growth opportunities ahead. Overall, we remain confident in our strategy, execution capabilities, and ability to deliver constant growth. Our focus will remain on scaling profitability, strengthening both our core and emerging brands, and creating long-term value for our stakeholders. With this, I would like to conclude my address and now hand over to Manish for the financial highlights. Thank you very much. Thank you, Mr. Jaipuria. Good evening, everyone. A very warm welcome, and thank you for your valuable time for attending DIL's Q4 FY2025 earnings conference call, our 15th such call since our listing in August 2021. DIL has continued with its store expansion plans. The store count as of 31 March 2025 was 2,039 stores, with our core store footprint at 1,917 stores, comprising of 1,060 KFC stores, 637 Pizza Hut stores, and 220 Costa Coffee stores. The consolidated operating revenue for FY2025, including Thailand, was INR 4,951 crore, with a robust growth of 39.2% versus FY2024. The Indian business witnessed a revenue growth of 7.5%. Q4 FY2025 consolidated revenues stood at INR 1,213 crore versus INR 1,047 crore in Q4 FY2024, growth of 15.8%. Indian business revenue for Q4 FY2025 was INR 801 crore, reflecting a growth of 6.6% versus Q4 FY2024. The gross margin of the consolidated business for FY2025 was 68.9% versus 70.3% in FY2024. The gross margin for Q4 FY2025 was 68.5% versus 68.7% in Q3 FY2025. A slight drop in margin was contributed mainly by cooking oil, coffee bean prices, and higher deal composition. The brand contribution for FY2025 was at 14.2% versus 15.5% in FY2024. This is mainly on account of sales deleverage and the amendment in GST law on rentals. Consolidated operating EBITDA, including Thailand, on a pre-index basis for FY2025, was INR 494 crore versus INR 381 crore in FY2024. Pre-index margins for FY2025 was 10% versus 10.7% in FY2024. FY2025 consolidated reported EBITDA margins on a post-index basis of 17%, INR 842 crore versus 18.3% in FY2024. The PVD for FY2025 on a consolidated basis was INR 12.8 crore versus INR 3.7 crore in full year 2024, with a growth of 248%. Moving the discussion to our core brands, KFC in India added 100 new stores in FY2025. With this, the total store count for KFC in India stands at 696 stores as of 31 March 2025. Average daily sales for FY2025 was INR 94,000 versus INR 105,000 in FY2024. Revenue of FY2025 at INR 2,179 crore increased by 6.6% versus FY2024. Gross margin for KFC for FY2025 was 68.9% versus 68.3% in Q4 FY2025. The brand contribution margin for FY2025 was at 17.4% and 16.2% for Q4, respectively. FY2025 decreased of 100 basis points. During the quarter, Pizza Hut India closed 14 stores. Overall, on a full year basis, Pizza Hut added 63 net new stores in FY2025 versus 61 in FY2024. The Pizza Hut India store count was 630 as of 31 March 2025. Revenue for FY2025 was INR 732 crore versus INR 709 crore in FY2024. For the quarter 2025, revenue was INR 175 crore versus INR 162 crore in Q4 FY 2024. The ADS for the brand was INR 34,000 in FY 2025 versus INR 37,000 in FY 2024. Gross margin for FY 2025 was 76.3% versus 75.9% in FY 2024, and brand contribution margin for FY 2025 was INR 20 crore with a margin at 2.7%. Costa Coffee added 11 new stores during the quarter and 41 stores during the entire financial year of 2025, reaching a cumulative store count of 220 stores as of 31 March 2025. FY 2025 revenue at INR 199 crore was INR 152 crore in FY 2024, with a 30.8% growth, and Q4 FY 2025 revenue was INR 52 crore, with a 16.1% growth versus Q4 FY 2024. The gross margin for FY 2025 was 75.4% versus 76.8% in FY 2024. This was impacted primarily because of inflation in coffee beans as well as other input materials for Costa Coffee. Brand contribution for FY 2025 was 16.1%, and FY 2024 was 17.6% versus 16.9% in the previous quarter. Moving to our international business, our total number of international stores was 375 as of 31 March 2025. The international business revenue for the quarter was INR 419 crore. The gross margin for FY 2025 was 64.2%, an improvement of 3% versus FY 2024, and the brand contribution margin for FY 2025 was at 15.9%, an improvement of 2.3% versus FY 2024. This is primarily on account of Thailand consolidation. Most recently, we announced the acquisition of Sky Gate Hospitality, owners of Biryani by Kilo, Goila Butter Chicken, and The Bhojan, marking our entry into high-profile Indian high-potential food category. We have acquired the business at an equity valuation of INR 519 crore. The stake of 80.72% will be settled by way of preferential allotment of DIL shares in accordance with SEBI regulations. DIL shareholders have voted in favor of the transaction, and we are planning to close the same in the next couple of weeks. We will also be infusing up to INR 90 crore cash by way of additional capital in the business. The business is currently loss-making, and we are hoping to turn it around in the next one year. To conclude, we continue to maintain a disciplined approach to growth, supported by strong execution and diversified brand portfolio that includes high-potential domestic and international formats. Our expansion strategy remains focused on driving profitability through operational efficiency and the continued rollout of small-format stores, which are both capital-efficient and scalable. As we look ahead, we believe the anticipated improvement in market conditions positions us well to build on the momentum of FY 2025. On that note, I would like to request the moderator to open the forum for any questions or suggestions that you may have. Thank you very much. Thank you. We will now begin the question and answer session. Anyone who wishes to ask a question may press * and 1 on the touchstone telephone. If you wish to remove yourself from the question queue, you may press * and 2. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles. Our first question comes from the line of Vivek from Jefferies. Please go ahead. Hi, good afternoon, team. A few questions. First, on KFC, Manish, this 83K ADS number looks very low. I mean, if I look at, I mean, except for, let's say, if you go back to second quarter 2021, this is the lowest number that I have seen, at least in the 18th quarter. What is the key reason for this number to be so low? Vivek, we've seen primarily one or two markets which have got impacted in KFC, which has pushed the SSSG down, and therefore the ADS numbers also. One is Andhra Pradesh and Telangana, where we've seen the impact of bird flu, which was only in Andhra Pradesh and Telangana in this year. The bird flu lasted for almost about 72-75 days. We are seeing the sales now coming back in Andhra Pradesh and Telangana. That has primarily kind of pushed down the table on SSSG as well as the ADS. The other thing that we've seen is primarily Kerala and West Bengal, where the impact of geopolitical situation continues. We are hoping that as things kind of now stabilize, we will see the SSSGs coming back in Kerala and West Bengal also. As you know, these are three very important states for us. Therefore, as we see the improvement coming back in these states, things will start to improve. At the same time, Karnataka, which is the largest state for us, has seen very, very stable numbers. Even the SSSG in Karnataka as a state and Bangalore as a city is positive, and there the ADS momentum is maintained. Therefore, in our view, let's say once these three states start to come back, we are seeing the signals now, we will see a better ADS as well as the SSSG. Got it. Does that mean, Manish, fourth quarter marks the trough and things should sequentially get better, or you can be at this level for some time and then the improvement may still be away? The other way of putting this also is that the SSSG number of -6% is also on a base of -7%, which was on a base of +2%. It is not that the base has been very high, right? How do you think about the improvement? You get better from here or you stay here for some more time? You're right, Vivek. We should see better numbers sequentially. As I said, I mean, it's primarily because overall we have seen the recovery, and that's the reason I kind of called out these three states separately because most of the other states, for example, I mean, UP is a good state for us. There are other states also which have seen a positive SSSG. As, let's say, these three states start to come back, we should. I think in our belief also, it's probably the trough that we are seeing. Okay. One last bit on this point, Manish. Again, apologies if I do not understand your business that well. If I go back to, let's say, fiscal 2022, fiscal 2023, you were broadly ballpark INR 120,000 in terms of ADS. That number, in the last three quarters, has been reasonably below INR 100,000 or 1 lakh. Do you think there is something which has changed in the business, or do you think as and when urban consumption picks up, you can still go back to those, let's say, INR 120,000 or thereabouts kind of number, which are looking quite far? Do you think that issue will—those numbers are achievable in the next few years? Vivek, I think what we need to bear in mind is that, let's say, when we had an ADS of almost INR 125,000-INR 127,000, there were about 300-odd KFC stores which are now sitting at close to 700 stores. It is more than double. All of this has happened in the middle of the consumption slowdown and all. Therefore, the way we are looking at the business in terms of what used to be INR 120,000, the new normal should be about INR 100,000-INR 105,000. We are confident of delivering the same margins that were delivered at INR 125,000-INR 127,000 ADS at INR 100,000. We have kind of geared up the business accordingly that from a profitability perspective, we should be able to deliver the same margins. Obviously, with this kind of store growth, there is some bit of cannibalization also happening that kind of impacts the ADS numbers. What I meant, Manish, was that was a cyclical high at that point of time. I understand the stores have, but India is a growth market as you have been also highlighting all time, and we have seen cycles in this business particularly. My simple question is this 120K number is not an abnormal number. As and when the cycle picks up, I'm not thinking about average, but as and when cycle picks up, those are still possibilities, or you think that there was something specific we were coming out of COVID and so on and so forth that that starting point was incorrect from that perspective? We are resizing the business, Vivek, for about 100,000-105,000 because, as you know, I mean, over a period of time, we've reduced the store sizes also. We've reformatted the store sizes. We've maintained the payback periods. Therefore, I mean, read that whatever was 120,000-125,000 number is 100,000-105,000. As I said, we'll be able to deliver the same margins which we were delivering at 120,000, at 100,000-105,000 now. Got it. Crystal clear, Manish. Second question is just a big picture or, let's say, whatever your philosophical thoughts are. As I see the kind of acquisitions that you have done, whether it's overseas or India in terms of brands, as an outsider, I get a feeling that the portfolio is getting a bit complicated. You have too much on your plate right now. There is KFC, which is the star, and then there are a lot of actors around it. How do you ensure that the management bandwidth stays on course and there is no accident in the journey therefore? The way we have structured, every brand gets a completely independent focus as far as the brand team is concerned. When I say the brand team, there is a separate CEO for the brand. There is a separate marketing team. There is a separate operations team and so on and so forth. It is only the support functions which are common across the brand, and that kind of works as a foundation for the entire business. Therefore, even for, let's say, if you were to look at, say, newer brands in terms of Sanook Kitchen and Tealive and all, we have hired a new CEO. If you were to look at the Thailand business, the team that existed prior to our acquisition has continued as is. There has been no change in the team, and they are doing a great job. We are not kind of tinkering too much as far as the brand teams are concerned. That is how we are kind of scaling up. Obviously, the new brands, they need more bandwidth. Again, over a period of time, our objective is to create multiple legs for the business so that we are not just dependent on one or two brands. If you look at, let's say, our recent acquisition in terms of Biryani, I mean, that is the largest online ordered and online consumed item as far as the Indian cuisine is concerned, and biryani is a large category. We have acquired a company which is one of the market leaders in the space. There also, even in this acquisition, the founders and the promoters who originally founded the brand will continue to run and manage the brand. We will only kind of harmonize the support functions to be able to draw the synergies. Otherwise, we have no intention to kind of change the fundamental brand management from that perspective. Got it. Just one last follow-up, if I may, Manish, on this point. For the longest time, biryani had, let's say, Yum portfolio and Costa alongside and a couple of your own brands. We have now seen a pickup in pace in terms of what you have done both outside India and in India. It just gives a feeling that are you a bit concerned about KFC or a deceleration in the growth of that business, which is why you are actually going after quite a few opportunities? I mean, it's just the pace has surprised. If you can just elaborate a bit more on that part, why do so many things instead of just focusing on a couple of big things? As you know, as far as KFC is concerned, it remains our star brand. We are as bullish on KFC as we were ever. Therefore, there is no change in terms of the way we look at the brand, the way we are bullish on the brand, the way we are kind of expanding the brand. There is no change. Pizza Hut, obviously, we have slowed down a little bit, and we have communicated that also in the past in terms of store growth and the other things. We want to create a leg which kind of becomes another, let's say, Pizza Hut in the business. As you know, even for example, let's say the new brands that we've signed up, they are all unique brands which are currently not so prevalent in the market, and we are trying to create that category. Therefore, we are quite bullish on those. Even biryani, for example, if you were to look at, I mean, that's the largest Indian food category, as I said. Obviously, we want to create different legs. At the same time, in terms of the opportunity and when it comes, I mean, it's a matter of when it comes and when you're able to grab it. Therefore, I mean, obviously, I mean, it cannot be at our speed and our choice when these opportunities come. We are absolutely in sync with what you are saying, and we are absolutely cognizant to whatever you are saying that we have to focus, and we have to pay attention to these new brands and the existing businesses that we have. That's what we are doing. Got it, Manish. Thank you for your detailed response. Wishing you and your team all the very best. Thank you. Thank you. Ladies and gentlemen, in order to ensure that the management is able to address questions from all participants in the conference, please limit your questions to one or two per participant. Should you have a follow-up question, we would request you to rejoin the queue. Our next question comes from line of Gaurav Jogani from JM Financial. Please go ahead. Thank you for the opportunity. Manish, my first question is with regards to the corporate overhead, and this is specifically the overhead in the international business. That seemed to have jumped quite higher. If you can provide any details why so and how is the outcome there? As far as international business, Gautam is concerned, we've done some reclassification in terms of the management fee that we charge to Thailand to harmonize between the accounting treatment of what was happening in India and what was happening in Thailand. Otherwise, in terms of the corporate overhead, they are absolutely in control. There's no change. If at all, if you look at the current quarter, they are down by a few basis points versus the previous quarter. Even the full-year basis is more or less remained the same versus what it was on a full-year basis. It is only a reclassification between the heads that you are seeing that aberration a little bit. Manish, I think if we look at the absolute term, last quarter, the corporate overhead was around INR 540 million, and this quarter, it's around INR 590 million. I mean, in this term also, QQ and YYY, both it has increased, actually. That's what I said. There is a reclassification between the brand contribution and the corporate overhead. Otherwise, if I were to negate that, then it stays on course. That's what I said. Okay. Okay. Got it. Got it. Manish, the other question is with regards to the margins again. I mean, it's partially alluded that KFC margins, despite a lower ADS, you might be able to do the same numbers that you are doing in India. How should we think of the margin in the next two years, given that the recovery has been gradual versus what the earlier expectation was? If you look at even the current margins, Gautam, we are currently sitting at about 16.2% at probably, as Vivek said, the worst-ever ADS in the history of the brand, at 83,000. As I said earlier, let's say once we are able to hit 100,000-105,000, we will be able to get back to 20% margins on this one. That is how we've kind of reshaped the business. We are absolutely confident that once the top line recovers, those numbers are doable because otherwise, if you look at a decline from 127,000 to 83,000, the brand would have been lost to the brand, which is not the case. We are still delivering 16%-17% brand contribution margin. Therefore, that kind of gives you the proof that we've already resized the business. We've already kind of recreated that from an overall P&L perspective. I have more questions. I'll come back to you. Sure. Thanks. Thank you. Our next question comes from line of Jayanthu Gowar with Bernstein. Please go ahead. Hi. Thank you for the opportunity. Manish, one question on Pizza Hut. What do we think is our plan forward for reviving that brand? I think it seems to have stabilized at these ADS levels, and they are not levels at which we can generate returns for us. What are our plans for that? I think there was some conversation in your sister's concerns investor call also regarding this. Would love to hear your perspective, please. Thank you. Jiyanshu, on Pizza Hut, as we have communicated in the past, we have slowed down the growth exactly because of the same concerns. Therefore, we are in discussions with Yum in terms of how do we turn around the brand because, for example, you know that most of the levers are controlled by Yum in terms of innovation, in terms of price point, promotions, and so on and so forth. We are currently in discussions with Yum in terms of how do we take this brand forward. See, overall, let's say if you were to look at between us and our second franchise partner, it still remains a strong brand. I mean, between the two, it is almost an INR 1,200 crore-INR 1,300 crore brand, which is the number two brand in the country after the market leader. We are absolutely hopeful that the brand can be turned around. We have to make the tweaks as far as innovation, value offerings, communication is concerned. I think we should be able to come back to you by next quarter in terms of what is our exact plan on Pizza Hut. Okay. Great. Thank you. Second question was on Thailand. Any specific details you can share about what is the shape of the business there and what is your outlook for going forward there in terms of either growth or profitability? See, Thailand business is very stable. We've improved the margins from the time we've actually taken over the business. We've managed to maintain triple SSGs as well as the ADS numbers at a healthy level compared to the rest of the business. Therefore, it's going at a right clip. We are also evaluating introducing new brands in Thailand. For example, Tealive, as you know, we communicated that we've signed up this brand for India and Thailand. You will see the new stores opening both in India and Thailand in the current quarter for Tealive. Our idea is to kind of leverage the existing Thailand infrastructure with the new brands from our portfolio, with the new brands that we are signing, and therefore build it further from there. We are bullish on the Thailand business as well as the overall market. Small follow-up on Thailand itself. Are we profitable at level this year? No, at level, we are not. At a brand contribution level, at an EBITDA level, we are positive because I think I don't know whether sorry, go ahead. No, no. Sorry, sorry. Please finish. Please finish. Because, for example, Thailand has a more aggressive depreciation policy than India, and we've not tried to kind of realign that to the Indian business because of tax reasons. That's the reason the PAT is negative. Otherwise, on that. Tea Live? Yes. Okay. Yeah. Sorry. I'm so sorry. I am so sorry. Actually, Tealive is part of Thailand business then, or will it be like a new subsidiary? It'll be part of the main business and the legal entity. It'll not be a new subsidiary. Okay. All right. Great. All right. Thank you. Thank you. Okay. Thank you. Our next question comes from line of Saurabh Kundan from Goldman Sachs. Please go ahead. Thank you very much. Most questions were already answered. Just one that you might have already had your development agreement discussions with Yum on an annual basis. Could you just let us know format-wise what would be your targets this year and a few years ahead as well? Thank you. That's all. We do not have annual development target discussions with Yum. We typically enter into an agreement which spans over a period of five to six years. That is how we kind of maintain. In case of any exceptional situation, we obviously go back to Yum, and we mutually align in terms of what is doable in the current circumstances and so on and so forth. As far as KFC is concerned, there is no change. We have talked about for this year about 110-120 stores. We are on course for that. There is no deviation. As far as Pizza Hut is concerned, we are having an overall discussion, which is what I mentioned in my earlier response, in terms of how do we take the brand forward. That includes the development discussions also with Yum. We'll be able to come back to you by next quarter in terms of what is our exact plan on Pizza Hut. KFC stays absolutely on course. All right. Thank you very much. That's all. Thank you. Thank you. Our next question comes from line of Ravi Jaipuria from Emkay Global. Please go ahead. Yes. Hi. Thanks for the opportunity. Manish, there has been a broad margin decline across formats. Second, if you can segregate this into impact due to value offerings and the second that you mentioned that there is some input inflation as well. The ninth question is, are you planning to take some price increase to beat this inflation? Sure. So Devanshu, two things there. If you look at, let's say, KFC, we've seen input price increase in palm oil, small bit in chicken and the flour. We think it'll probably come back. We've seen in the current quarter, even though oil prices are stabilizing now. Therefore, that is not a big worry. We do not want to take a price increase given the current overall consumption slowdown and so on and so forth. We'll try and absorb to the extent we can. We are hopeful that things should improve from where we are. As far as Pizza Hut is concerned, there's no big input price increase. Therefore, it's stable gross margins. The third one is Costa, where we've seen a very strong input increase as far as the raw coffee bean pricing is concerned. There we have taken and balanced it out from a pricing perspective as well as the deals and promotions. We are also trying to introduce some value layers in all of our brands. We have seen that happening very, very strongly with the competitive brands, whereas we have been kind of a little behind the curve, which has impacted our SSSG also. Therefore, we are planning to become a little more aggressive on the value layers. We will see that happening from the current quarter. Understood. These value layers, at least from an annual perspective, can have some impact on the gross margins, or that is manageable? Not so much because as of now, it's only test mode. We will try and implement and introduce that to the market. Let's see how it goes. Typically, it takes almost one or two years by the time it becomes a sizable composition of the menu mix. What is important is you need to have these value layers and price offerings so that you're able to get the footfalls in the stores. Once the consumer comes into the store, then obviously, it's not such a big issue. Understood. Our last question is, Biryani by Kilo, currently, the brand is having some operational loss. What are the medium-term expectations on the scale that this can achieve and the margin improvement that can happen in this format? You mentioned some infusion of INR 900,000,000 in this brand. What is the period for which the growth can sustain with this infusion that you're making? Devanshu, as you understand, there's a huge opportunity. Let me explain to you that in bits and pieces. One, as we kind of take over the brand, there's kind of opportunity in all lines. We can improve the GMs from where they are. We can improve the brand contribution where they are and so on and so forth. That's how I said on an organic basis, we will be able to turn around the brand in one year's time. At the same time, in terms of the expansion growth, for example, they've got three brands, which are Biryani by Kilo, Goila Butter Chicken, and The Bhojan. It can easily fit into all of our food court locations, whether it is on the highways or it is there in the malls or it is there in the airports. That's a good synergy that we can drive in because, as you know, even today also, we deal with third-party brands. We are going to be, in fact, we've already started that exercise that wherever on a per sq ft basis, we have some inefficiency coming in, we'll be easily able to replace the third-party brands with our own brands coming out of the Sky Gate portfolio. At the same time, they have a network of cloud kitchens. We are also evaluating whether in their cloud kitchen, we can put some of our brands depending on the location and what is the size of the cloud kitchen. Both ways, the synergies can work. We see it as a great opportunity. It can become a very strong leg in the business over a period of time. That's the reason we are bullish on this entire portfolio. For the period, this INR 900 million infusion, is this the only infusion that we plan, or is this going to be a continuous process where some money will be required to be infused in this brand for some time? See, it is too early to comment on that because we are hoping that with this, the overall brand will turn profitable, one for sure. Second, we have to understand, let's say, the first two phases of the brand expansion from a store perspective will be very efficient because we'll just house the brands within our own food courts and airports. Therefore, it will not be a huge CapEx. Let's see what is our growth aspiration because we are drawing up the long-term plans to be able to figure out. From an operations perspective, INR 90 crore should be enough. At the same time, please remember that as the overall portfolio exists today, we have to do a buyout of one or two subsidiaries. That is where some of the cash out of INR 90 crore will go away because Goila Butter Chicken is not fully owned by Sky Gate Hospitality. We have to complete that acquisition. That is part of the terms. At the same time, the Mumbai franchise partner ownership has to be consolidated. Some bit of money will go towards consolidation of that. The founders have already signed the term sheets on that. Understood, Manish. Thanks for taking my question. Thank you. The next question comes from line of Ravi Jayanthu Gowar with ISL Securities. Please go ahead. Hi, sir. My question is on the KFC. You earlier mentioned that you are basically making it such that at 105 sort of ADS, you would still make close to about 20% ROM. Just wanted to understand, apart from the store size change, what other measures are being put in place for this to happen? For the store size change, is it just a change for the stores which are open in the last year or so, or even the older stores you are somehow resizing downwards? Firstly, we've done that analysis to answer your last question first. Wherever, let's say, KFC stores are exceptionally large, and as you know, over a period of time, we've kind of opened new stores, and therefore, there has been some bit of cannibalization in the existing stores, we are planning to carve out the space for our newer brands, which are very, very small kiosk type of formats and so on and so forth. Obviously, these brands will be independent, but we'll be able to carve out some space. To your earlier question in terms of where are these margins going to be coming from, one is obviously the format that we've discussed earlier. The other one is, as we kind of go along, and if the ADS is a little down, you have the opportunities from a labor perspective. You have the opportunities from other overhead perspectives. That is what we have looked at, and we've kind of brought in that efficiency in the business. We are also negotiating some terms with the landlords, which again is a continuous process in the business. Therefore, we are hopeful that we'll be able to kind of control the rentals also to some extent. Is there any change in terms with the brand owner in terms of ad spend, royalties, etc.? That remains the same. There is no change. As you know, I mean, our commitment on royalty as well as the brand spends is on a percentage to the top line. There is no change on that. We do exactly as per the agreements that we've committed to. Got it. Just wanted to understand in terms of Sky Gate, the business has a bit of loss. So do you have a plan in terms of how many more quarters it will take for it to be a bit of a break-even? As I said, firstly, earlier on that we'll be able to turn around the business in one year's time. Therefore, we are absolutely confident that that should happen. Got it. Just one last question. In a conference call with one of your sister franchisees, they said that there was a little bit of a sort of difference of opinion in terms of the ad spends on Pizza Hut. Would like to know your take on that. See, there's no difference of opinion, I would say, because we both have different geographies. We both have a focus in terms of the formats because they are operating a little larger stores which are more dine-in focused, whereas our portfolio is small format, which is more delivery focused. As such, there is no difference of opinion. All we are trying to do is basically do whatever is required locally to ensure that the business kind of gets back on track. Because of the geography and because of these different formats, that is where the difference is. Okay. Thank you very much. Thank you. Our next question comes from line of Sanjeev Raj from Anand Rathi Institutional Equities. Please go ahead. Hi, team. Good afternoon. Thank you for giving this opportunity. Just want to understand a little bit better on our recent entry into the biryani business. We know that we are a differentiated brand in U.S.A. through strong execution and positioning. If you look at the biryani business, it's highly fragmented. Around 70-80% of the business is unorganized player. It's very competitive, and it's a low entry barrier and tough to scale. What's the thought process behind this move and how you are planning to bring differentiation in terms of value in such a competitive space? Also, you mentioned that currently, the business is plus making. How are you planning for a turnaround strategy here? Sure. See, biryani, as you know, is a large category. I absolutely agree with you that it's highly fragmented. As the food services play kind of grows in the country and as the consumption grows, we've seen a huge amount of consolidation on the Western brands. The same thing will happen in the Indian food category also. The brand is very well positioned. It's a premium brand. There's a very strong repeat rate from the consumer's point of view. The consumers indeed love this brand. One. Sir? It is. Sorry, go ahead. No, if you look at the chains, it's been changing from day to day, day to day. If you look at every 200 kilometers, the chains have been changing, right? On that part, how are you making the ASN, how are you trying to manage this total strategy? Sure. If you look at the biryani market overall, the largest category is Hyderabadi biryani, followed by Lucknowi biryani, and then Calcutta biryani. Let's say if you were to look at between these three, that would be almost like 60-70% of the market. From that point of view, while it kind of varies from state to state, it is not as fragmented as we used to think in the past. We've actually gone into the details of how much is what category and which state and so on and so forth. That is how we took a call. Coming to your question in terms of the turnaround, as I said earlier, we have the opportunities on material sourcing. There's a good opportunity there in terms of the way we buy. Obviously, we will start to buy and source for Biryani by Kilo as well. There is a sourcing opportunity. There is an opportunity on the labor, the way the labor gets deployed. There is an opportunity on the rentals because currently, the space or the premises that they operate from has a potential available. We can actually house some of our brands there, or we can actually cut the space wherever it is not required. There could be a lot of synergies which will be coming in as a result of Sky Gate Hospitality becoming part of a bigger portfolio, including all the support functions and so on and so forth. That is how our plan is to turn around the business. Thank you, sir. Second question is that, are we trying to position ourselves as a full-range QSR player with a wide variety of food offerings? Because we are already present in our core category, KFC, Pizza Hut, Burger, Coffee, Snacking, and South Indian vegetables, now Biryani. Is that the idea, to build a broader portfolio to serve different customer preference? See, we already are present in all the categories. As you know, in the Indian market, QSR big categories are basically chicken, pizza, burgers, coffee. So we are present in all of these categories. We've now got into the Indian category, which we were missing earlier apart from Vangu because Vangu was only focused on South Indian. At the same time, we've taken some new brands which are typically indulgence brands on the go, more whatever, rather than, let's say, a planned occasion. It's more whatever, temptation buying or temptation consumption. We are trying to position ourselves to cover various spaces available, not only from a brand perspective but also from a channel perspective. That's the reason we talked about our food court strategy in the past. All of this portfolio helps with our food court strategy as well. Thank you, sir. Finally, on KFC, we have reported almost 6.57, roughly. SSG. Negative output in SSG. In the last two years, we have been reached the bottom. Can we say this is the bottom? You mentioned that two markets have been affected by bird flu. Apart from this, is this negative SSG coming largely from Tyrone or Tyrone City, sir? Yeah, it's largely coming from three markets, as I said. One is Andhra Pradesh Telangana, Kerala, and West Bengal. The rest of the markets have already turned around. We are absolutely hopeful that these three markets also should turn around in the next few months. Yeah. Thank you, sir. Thank you for the opportunity. All the best. Okay. Thank you so much. Thank you. As there are no further questions, I would now like to end the conference. Over to Ravi Jaipuria with closing comments. Thank you very much. We hope we have been able to answer all your questions satisfactorily. Should you need any further clarifications or would like to know more about the company, please feel free to contact our Investor Relations team. Thank you once again for your interest and support and for taking the time out to join us on this call. Thank you very much once again. Thank you. On behalf of Devyani International, that concludes this conference. Thank you for joining us, and you may now disconnect. You are live.