Devyani International Limited announced its financial results for the second quarter (Q2) and first half (H1) of FY2027, ending September 30, 2026. The company achieved consolidated sales of INR 1,519 Cr in Q2 FY27, marking a 10.4% year-over-year growth. Operating EBITDA saw a significant increase of nearly 18% to INR 229 Cr in Q2 FY27. The company also reported positive profit before tax of INR 5.7 Crs for the quarter, a substantial improvement from the previous year’s loss.
Devyani International Delivers Robust Q2 and H1 FY27 Performance
Devyani International Limited (DIL) has announced its financial outcomes for the second quarter (Q2) and the first half (H1) of the financial year 2027, concluding on September 30, 2026. The company demonstrated strong growth momentum, with Q2 FY27 sales reaching INR 1,519 Crore, reflecting a 10.4% increase compared to the same period last year. This performance was bolstered by positive same-store sales growth (SSSG), ranging from 4% to 9% across its brand portfolio, with KFC leading store additions with 50 net new units in India.
Key Financial Highlights
The positive SSSG contributed to a significant rise in earnings. Despite inflationary pressures on raw materials and wages, DIL managed to lift its EBITDA by nearly 18% to INR 229 Crore in Q2 FY27. This marked one of the best operating EBITDA figures for a second quarter. Consequently, the company reported a Profit Before Tax (PBT) of INR 5.7 Crore for the quarter, a marked improvement from a loss in the prior year. For the first half (H1) of FY27, the PBT stood at INR 29 Crore, contrasting with a loss of INR 24 Crore in H1 FY26.
Business Expansion and Strategy
DIL continued its aggressive store expansion strategy, adding 70 net new units during Q2 FY27, bringing its total store count in India to 1,923 stores and 2,325 stores globally. The company is on track to meet its full-year guidance of 200-220 net new additions. The Chairman highlighted the quality of growth observed, driven by transaction growth and an increase in on-premise channel sales, indicating a sustainable long-term growth trajectory.
While acknowledging near-term challenges such as food inflation and potential impacts of AI adoption on job losses, DIL remains focused on providing value at entry price points, consistent marketing efforts, and bringing guests back to its restaurants. The company is also progressing well with its pre-merger preparations and has received CCI approval for the merger.
Performance Across Brands
Key brand performance highlights include SSSG momentum maintained with KFC delivering +4.4% SSSG, improving QoQ. Costa and BBK delivered over 8.0% SSSG, and Pizza Hut SSSG also improved sequentially. Initiatives like the INR 99 Krisper meal at KFC for new customer recruitment and the launch of the Triple Spice range at Pizza Hut are aimed at enhancing customer value proposition. DIL also reported strong margin delivery amidst inflation, with operating EBITDA growing +34% YoY to reach INR 125 Crore in Q2 FY27.
Consolidated EBITDA for H1 FY27 reached INR 4,834 Mn, a 21.1% increase compared to H1 FY26, with an EBITDA margin of 15.6%. The company’s store additions during the quarter included 70 Net New Units (NNU), with KFC adding 50 net new stores and BBK adding 6 net additions. Revenue from operations for H1 FY27 stood at INR 30,999 Mn, a +13.4% increase over H1 FY26.
Source: BSE
