Private equity firm CX Partners has initiated the sale of its majority stake in Thalappakatti Hotels, one of India’s leading Dindigul-style biryani chains, as it looks to exit its investment after seven years. The proposed transaction values the restaurant brand at around ₹1,000 crore, reflecting its strong financial performance and sustained growth in India’s organised food services sector.
CX Partners, which invested ₹260 crore in the Tamil Nadu-based restaurant operator in 2019, has appointed Advay Capital to manage the divestment process. The private equity firm is exploring a complete exit after supporting the brand’s expansion over the past seven years.
The proposed valuation represents a notable increase from the company’s previous funding round, when it was valued at approximately ₹860 crore. According to filings with the Ministry of Corporate Affairs, Thalappakatti Hotels reported operating revenue of ₹406.2 crore in FY25, up from ₹340.3 crore in FY24, highlighting continued business growth.
Additionally, the restaurant chain improved its profitability during the financial year. It posted a net profit of ₹7.3 crore in FY25, compared with ₹4.4 crore in the previous fiscal year, demonstrating stronger operational performance alongside revenue expansion.
The targeted valuation implies a revenue multiple of nearly 2–3 times annual revenue. Although CX Partners intends to divest its entire stake, the final transaction structure may include a combination of fresh capital infusion and secondary share sales, depending on the preferences of the incoming investor.
Founded in 1957 in Dindigul, Thalappakatti Hotels has evolved into one of South India’s most recognised restaurant brands under the leadership of Nagasamy Dhanabalan, a third-generation entrepreneur. Today, the chain operates more than 100 outlets across India, with a significant presence in southern markets. The company has continued to build its brand around its signature Dindigul-style biryani, which remains its key growth driver.
Meanwhile, India’s organised food services industry continues to attract strong investor interest as consumers increasingly prefer branded dining experiences and digital food delivery platforms continue to expand. Industry estimates value the domestic food services market at nearly $80 billion, with analysts projecting a 10–11% compound annual growth rate (CAGR) through 2030. Consequently, both domestic and international investors continue to explore opportunities in established restaurant brands seeking capital for expansion.
Going forward, the selection of a strategic or financial investor and the finalisation of transaction terms will remain key developments to watch. Investors will also closely monitor how Thalappakatti Hotels maintains profitability while expanding into new markets, alongside the impact of the ownership transition on the company’s long-term growth strategy.
