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Devyani International Limited (DIL), the master franchisee for brands including KFC and Pizza Hut in India, reported a sharp 90% year-on-year drop in net profit for the June quarter, falling to Rs 2.22 crore from Rs 22.43 crore in Q1FY25.
Total income rose 10.6% to Rs 1,370 crore from Rs 1,231 crore a year ago, while revenue from operations grew 11% to Rs 1,357 crore. However, total expenses climbed 12% to Rs 1,367 crore in Q1 FY26 from Rs 1,201 crore in Q1 FY25.
Segment-wise, Q1 revenues stood at Rs 612 crore for KFC India (up 10.5% YoY), Rs 187 crore for Pizza Hut India (up 3% YoY), and Rs 433 crore from the international business (up 11.2% YoY). EBITDA was Rs 204 crore with a margin of 15.1%.
During the quarter, DIL expanded its footprint to 2,145 stores, including 105 outlets of Sky Gate Hospitality following its acquisition on June 10, 2025. The company purchased an 80.72% equity stake in Sky Gate, excluding certain businesses, for Rs 4,196 million via preferential equity issue, later increasing its stake to 86.13% with an additional Rs 103 crore investment.
Sky Gate operates market-leading brands such as “Biryani by Kilo” and “Goila Butter Chicken.” The quarter also saw the addition of 106 new stores, including two Tealive outlets in Thailand and the first New York Fries store in Mumbai.
Commenting on the results, Ravi Jaipuria, Non-Executive Chairman, DIL, said India’s QSR industry remains on a “structural growth trajectory” despite near-term demand softness. He expressed confidence that Sky Gate’s brands will be key contributors to DIL’s expansion in the biryani and Indian cuisine segment, one of the country’s largest food categories.
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