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Devyani International Ltd (DIL) reported a net profit of ₹3.46 crore in the September 2026 quarter, compared with a net loss of ₹23.9 crore in the corresponding quarter last year, according to a regulatory filing, as shared in media reports.
The company is India's largest franchisee of Yum Brands, which operates popular restaurant chains such as Pizza Hut, KFC and Costa Coffee.
Revenue from operations increased 10.36% to ₹1,519.42 crore in Q2 FY27, against ₹1,376.75 crore in the July-September quarter of the previous fiscal.
Total expenses rose 8.3% to ₹1,531.38 crore during the quarter.
The company's total income, including other income, increased 16.72% to ₹1,599.7 crore in the second quarter.
For the first half of FY27, DIL's consolidated total income grew 13.7% to ₹3,131.09 crore
Chairman Ravi Jaipuria said: "Despite steep inflation in raw materials and wages, the leverage from higher same-store sales and tight cost control helped us lift the EBITDA by nearly 18 per cent, to ₹229 crore. This is one of the best Q2 operating EBITDA numbers that we have seen, and the same helped us post Profit before Taxes of ₹5.7 crore for the quarter, against a loss last year".
DIL's overall store count stood at 2,325 at the close of the September quarter.
"We added 70 net new stores during the quarter. KFC led the store additions, with 50 net new units added in India. This takes our store footprint to 1,923 stores in India and 2,325 globally," he said.
The company remains on course to achieve its annual target of 200–220 net store additions.
On the outlook, Jaipuria said: "Equally encouraging is the quality of growth that we are observing. Across brands, we have witnessed transaction-led growth – and growth in our on-premise channel sales. Both these trends are very heartening and are key to a long-term sustainable growth trajectory".
With a strong presence in India's QSR market, DIL operates as the country's largest franchisee of Yum Brands' KFC and Pizza Hut chains. It is also the sole franchisee for Costa Coffee, Tea Live, New York Fries and Sanook Kitchen in India, while its owned portfolio includes South Indian vegetarian QSR chain Vaango.
Earlier this year, DIL and Sapphire Foods India, the two leading franchise operators of Yum Brands' KFC and Pizza Hut chains in the country, announced a merger through a share-swap arrangement. The combined entity is expected to operate more than 3,000 stores, creating one of India's largest QSR networks.
Last year, DIL expanded its portfolio by acquiring Sky Gate Hospitality, which owns brands such as Biryani By Kilo and Goila Butter Chicken.
Meanwhile, shares of Devyani International declined 4.11% to ₹115.60 apiece on the BSE on Monday.
