Devyani International Limited (DIL) reported a 12.6% increase in consolidated revenue for Q2 FY26, reaching INR 13,767 Mn. KFC India’s revenue grew by 5.3% to INR 5,723 Mn, while Pizza Hut India’s revenue remained flat at INR 1,860 Mn. International business showed strong growth with revenues up 14.0% to INR 4,495 Mn. The company added 39 new stores during the quarter, including 30 KFC outlets.
Financial Performance Highlights
Devyani International Limited (DIL) announced its Q2 FY26 results, showcasing a 12.6% year-over-year increase in consolidated revenues, reaching INR 13,767 Mn. The company’s KFC India segment saw a revenue increase of 5.3% YoY, amounting to INR 5,723 Mn. Pizza Hut India’s revenue remained stable at INR 1,860 Mn. The International Business segment demonstrated strong growth, with revenues climbing by 14.0% YoY to INR 4,495 Mn.
Gross Margin and Brand Contribution
The consolidated Gross Margin for Q2 FY26 stood at 67.8%. While the consolidation of Skygate portfolio impacted the Gross Margin by 50 bps, the Gross Margin remained stable on a quarter-over-quarter basis excluding the Skygate impact. Consolidated Brand Contribution was reported at 11.7%, with Skygate consolidation impacting margins by 70 bps.
EBITDA Performance
Operating EBITDA (pre-IndAS) was reported at INR 934 Mn, with margins at 6.8%. Reported EBITDA stood at INR 1,943 Mn, reflecting margins of 14.1%. The consolidation of Skygate impacted the Reported EBITDA margins by approximately 1%.
Store Expansion and Network
DIL continued to expand its store network, adding a net total of 39 new stores during Q2 FY26. This includes 30 net new KFC stores. Tealive was test-launched with 6 new outlets opened during the quarter.
International Market Performance
International revenues grew by 14% YoY with slightly better margins. Nepal experienced an impact from civil unrest, while Thailand faced weather-related and border disturbances.
Chairman’s Comments
The company highlighted the positive impact of GST 2.0 and its disciplined execution despite external headwinds. DIL remains well-positioned to capture upcoming opportunities and deliver sustainable, profitable growth.
Source: BSE
