KFC India operator Devyani falls on Q1 profit slump; brokerages flag weakness ahead

** Devyani International DEVY.NS falls 0.7% to 157 rupees

** KFC and Pizza Hut operator posts 88% y/y slump in Q1 profit; rev from ops up 11.1% y/y

** Brokerages see weakness ahead as margins remain under stress

** Core profit margins contracted 15.1% from year-ago 18.3%, weighing on profitability

** PhillipCapital ("Neutral"; PT: 162 rupees) sees higher marketing spends, rise in prices to weigh on profitability

** Macquarie ("Outperform"; PT: 215 rupees) sees continued margin weakness across formats, limited near-term triggers

** Stock rated "buy" on average; median PT is 190 rupees, per data compiled by LSEG

** YTD, DEVY falls 14%