Devyani International reported a 12.6% year-on-year revenue increase to INR 1,377 crore in Q2 FY26. KFC India added 30 net new stores, reaching a total of 734. While consolidated EBITDA was INR 194 crore, margins were impacted by the Sky Gate acquisition, which is expected to reach breakeven by March 2026. The company is optimistic about GST 2.0 and continues to focus on sustainable growth.
Financial Performance
In Q2 FY26, Devyani International’s operating revenue reached INR 1,377 crore, reflecting a 12.6% year-on-year increase. Gross profit stood at INR 933 crore, with a margin of 67.8%. The company’s brand contribution margin was 11.7%.
Brand Performance
KFC India expanded its store network by 30, bringing the total count to 734. Pizza Hut India’s revenue for the quarter was INR 186 crore, with stable gross margins. The company test-launched Tealive with six new outlets, and recent acquisitions like Biryani By Kilo and Goila Butter Chicken performed well, especially after Dussehra.
Strategic Initiatives
Devyani International is integrating Sky Gate, aiming for brand contribution breakeven by March 2026. It is also focusing on promotional strategies and menu innovations, such as the ‘Chana Chatpata Burger’ at KFC. The company anticipates benefits from GST 2.0 and remains focused on expanding its portfolio and operational efficiency.
EBITDA and Margins
Consolidated operating EBITDA was reported at INR 194 crore, with margins at 14.1%. This figure reflects the full impact of Sky Gate consolidation. Excluding Sky Gate, operating EBITDA would have been higher at 7.6%. Start-up costs related to new franchise brands like Tealive, New York Fries, and Sanook Kitchen also affected margins.
Store Expansion
Devyani International plans to open approximately 100 to 110 new KFC stores during the financial year. The company ended September 2025 with a total store count of 2,184, including 1,100 KFC stores and 630 Pizza Hut stores globally.
International Business
The international business saw revenues of INR 450 crore, up 14% year-on-year, with gross margins at 64% and a brand contribution of INR 75 crore, representing 16.7% margins, primarily led by strong performance in Thailand.
Source: BSE
