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A recovery in consumer demand and improved performance across its quick service restaurant portfolio helped Devyani International deliver a sharp rise in earnings during the quarter ended June 30, 2026. The company, which operates KFC and Pizza Hut in India, reported strong revenue growth alongside a notable turnaround in profitability, led by positive momentum in its KFC business.
The company posted a consolidated net profit of ₹14.65 crore in Q1 FY27, compared with ₹3.69 crore in the corresponding quarter last year, marking nearly a fourfold increase.
Consolidated revenue from operations grew 16.5 percent year on year to ₹1,580.5 crore from ₹1,357 crore in Q1 FY26. Total income also increased to ₹1,599.7 crore, up from ₹1,370.5 crore in the year ago period.
Profit before tax from continuing operations rose to ₹22.92 crore from ₹2.94 crore a year earlier, reflecting improved operating performance despite higher costs. Operating expenses increased to ₹1,576.8 crore during the quarter from ₹1,367.4 crore in the corresponding period last year as the company continued to invest in restaurant operations and expand its store network.
A key highlight of the quarter was the improvement in KFC's same store sales, with existing outlets recording 3.3 percent growth. The performance indicates improving consumer demand and higher spending across mature restaurants.
The results come as India's organised quick service restaurant sector continues to recover after a prolonged period of uneven demand. Operators across the industry are focusing on value driven offerings, digital ordering, delivery channels and improving store level productivity to sustain growth.
The quarterly performance also comes ahead of Devyani International's proposed merger with Sapphire Foods India, another leading franchisee of KFC and Pizza Hut restaurants. The combined entity is expected to become one of the country's largest quick service restaurant operators by store count, enhancing operational scale and strengthening its market position.
Backed by double digit revenue growth, improving profitability and encouraging same store sales performance, Devyani International enters the rest of FY27 with stronger business momentum and an expanded platform for future growth.
