Devyani International Swings to Rs 3.46 Crore Q2 Profit as Revenue Rises 10.36 Percent

Devyani International Ltd (DIL) reported a consolidated net profit of Rs 3.46 crore for the September 2026 quarter, compared with a net loss of Rs 23.9 crore in the corresponding period last year. Revenue from operations increased 10.36 percent year-on-year to Rs 1,519.42 crore in Q2 FY27, up from Rs 1,376.75 crore.

The company’s total expenses rose 8.3 percent to Rs 1,531.38 crore during the quarter, while total income, including other income, increased 16.72 percent to Rs 1,599.7 crore. For the first half of FY27, consolidated total income grew 13.7 percent to Rs 3,131.09 crore.

Chairman Ravi Jaipuria attributed the improvement in operating performance to higher same-store sales and cost controls despite inflation in raw materials and wages. He said, "Despite steep inflation in raw materials and wages, the leverage from higher same-store sales and tight cost control helped us lift the EBITDA by nearly 18 per cent, to ₹229 crore. This is one of the best Q2 operating EBITDA numbers that we have seen, and the same helped us post Profit before Taxes of ₹5.7 crore for the quarter, against a loss last year".

DIL added 70 net new stores during the quarter, taking its global network to 2,325 outlets. KFC accounted for 50 of the net additions in India. The company now operates 1,923 stores in India and remains on track to meet its annual target of 200–220 net store additions.

"We added 70 net new stores during the quarter. KFC led the store additions, with 50 net new units added in India. This takes our store footprint to 1,923 stores in India and 2,325 globally," he said.

The company also reported growth in transactions and on-premise channel sales across its brands. Jaipuria said, "Equally encouraging is the quality of growth that we are observing. Across brands, we have witnessed transaction-led growth – and growth in our on-premise channel sales. Both these trends are very heartening and are key to a long-term sustainable growth trajectory".

DIL operates KFC and Pizza Hut in India as a franchisee of Yum Brands and is also the franchisee for Costa Coffee, Tea Live, New York Fries and Sanook Kitchen. Its owned portfolio includes South Indian vegetarian QSR chain Vaango. Last year, the company expanded its portfolio through the acquisition of Sky Gate Hospitality, which owns Biryani By Kilo and Goila Butter Chicken.

DIL and Sapphire Foods India, the other major franchise operator of Yum Brands’ KFC and Pizza Hut chains in India, announced a merger through a share-swap arrangement. The combined entity is expected to operate more than 3,000 stores. Shares of Devyani International declined 4.11 percent to Rs 115.60 apiece on the BSE on Monday.