Devyani International Net Profit Rises to Rs 14.65 Crore in Q1 FY27

Devyani International, the operator of KFC and Pizza Hut restaurants in India, reported a significant improvement in profitability during the quarter ended June 30, 2026, supported by revenue growth across its quick-service restaurant portfolio and positive momentum in its KFC business.

The company posted a consolidated net profit of Rs 14.65 crore in Q1 FY27, compared with Rs 3.69 crore in the corresponding quarter last year, reflecting a nearly four-fold increase in earnings.

Consolidated revenue from operations rose 16.5 percent year-on-year to Rs 1,580.5 crore, up from Rs 1,357 crore in Q1 FY26. Total income increased to Rs 1,599.7 crore, compared with Rs 1,370.5 crore a year earlier.

Profit before tax from continuing operations stood at Rs 22.92 crore, compared with Rs 2.94 crore in the same quarter last year, indicating stronger operational performance despite higher costs. Operating expenses increased to Rs 1,576.8 crore during the quarter from Rs 1,367.4 crore in the year-ago period, reflecting continued investments in restaurant operations and network expansion.

A key performance indicator during the quarter was the improvement in KFC's same-store sales. Existing KFC outlets recorded 3.3 percent same-store sales growth, suggesting improving consumer demand and higher spending across established locations.

The results come at a time when India's organized quick-service restaurant sector is showing signs of stabilization after a period of demand volatility. Restaurant operators continue to focus on value offerings, delivery channels and store productivity to drive growth.

Devyani International's performance also comes against the backdrop of its proposed merger with Sapphire Foods India, another major franchise operator of KFC and Pizza Hut outlets. The proposed combination is expected to create one of India's largest quick-service restaurant operators by store count, further strengthening scale and market presence.

With double-digit revenue growth and stronger earnings in the opening quarter of FY27, Devyani International enters the remainder of the fiscal year with improved momentum.