Devyani International reported consolidated net loss of ₹10.04 crore for the quarter ended March 31, representing a significant improvement from the loss of ₹14.74 crore recorded in the same period last year. According to latest reports, the Gurugram-headquartered company's revenue from operations rose 18.5% sequentially to ₹1,437 crore during the quarter, demonstrating strong operational performance despite challenging market conditions. The company's loss before tax stood at ₹18.09 crore as against ₹22.3 crore reported in the same period last year, showing marked improvement in operational efficiency. EBITDA added 14.24% YoY to ₹229.5 crore, though the EBITDA margin slipped to 16% from 16.6% in Q4 FY25. Total expenses increased 20.53% year-on-year to ₹759.1 crore, with cost of materials consumed at ₹448.29 crore (up 17.38% YoY), employee benefits expenses at ₹209.3 crore (up 22.68% YoY), and other expenses at ₹549.80 crore (up 19.72% YoY).
The company's flagship KFC brand delivered exceptional performance with 4.9% same-store sales growth during the quarter, marking its strongest performance in 14 quarters. As reported by Business Standard, KFC India's revenue rose 14.6% year-on-year, significantly outperforming the broader quick-service restaurant sector. The Gurugram-headquartered company attributed this strong performance to value-led offerings and customer engagement campaigns that helped sustain sales momentum. The company successfully navigated disruptions linked to recent cooking gas shortage due to Middle East conflict, which had minimal impact on operations. Univest notes that KFC's continued menu innovation with Indian-adapted products such as the Chana Chatpata Burger and localised pizza offerings helped drive footfall and average ticket size improvement in the quarter. The KFC India segment contributed ₹585.5 crore, up 14.6% YoY, while other brands maintained positive same-store sales growth trends.
The company's diversified brand portfolio showed mixed but generally positive performance across segments. Own brands segment posted ₹91.1 crore, registering an 11.5% increase on a like-for-like basis, demonstrating the strength of the company's non-KFC offerings. Pizza Hut India reported revenue of ₹169.2 crore, down 3.5% YoY, while the international business delivered strong growth of 20% YoY to ₹503.3 crore. Other brands including BBK, Vaango, and Costa continued their positive same-store sales growth trajectory, with BBK recording 3.2% SSSG. The company's growth strategy remained focused on disruptive value offerings, including combo and meal formats designed to enhance customer value while improving average order value, while also advancing expansion plans with BBK Express currently under pilot testing following the successful turnaround of BBK. The company's diversified brand portfolio strategy continues to demonstrate resilience across market conditions.
For the full financial year FY26, Devyani International's consolidated revenue from operations rose 13.3% to ₹5,612 crore compared with ₹4,951.1 crore in FY25, demonstrating sustained growth momentum. However, consolidated net loss widened to ₹42.5 crore from ₹6.9 crore in the previous year due to higher operating expenses, acquisition-related costs and exceptional items. The company completed the acquisition of Sky Gate Hospitality during FY26 and approved an amalgamation scheme involving Sapphire Foods India Ltd. Despite challenges, Devyani added 217 net new stores during the financial year, bringing its total store count to 2,256 as of March-end. The company crossed the 2,000-store milestone in India and international markets by March 2026, across 280 plus cities, ahead of the original 2026 target. The board approved an amalgamation scheme involving Sapphire Foods India Limited during FY26, which would further strengthen the Yum! Brands franchise network in India once regulatory approvals are completed.
Following the results announcement, shares of Devyani International, which were down as much as 1.9% before the results, rose 0.68% to ₹118.11 on the BSE. As reported by Business Standard, brokerage Elara Capital had earlier indicated that a sustained recovery in dine-in demand could meaningfully boost earnings for QSR operators, including Devyani International. The company's optimistic outlook reflects its ability to navigate current market challenges while maintaining growth momentum in its core KFC brand. The company expects to reach EBITDA break-even for the Skygate portfolio in FY27 as integration efficiencies are realised, with management guided for Skygate brand contribution to reach break-even by March 2026. With the merger progressing, leadership capabilities strengthening, and demand indicators showing early recovery, the company believes it is well positioned to enter its next phase of growth from a position of strength.
