Devyani International Ltd

Devyani International Limited (DEVYANI) reported Q2 FY27 results for the quarter ended September 30, 2026, highlighting strong performance despite macroeconomic challenges. The company added 70 net new stores during the quarter, with KFC leading additions by opening 50 new units, bringing total store count to 1,923 in India and 2,325 globally. Consolidated sales grew 10.4% year-over-year to INR 1,519 Cr, driven by positive same-store sales growth (SSSG) ranging from 4% to 9% across brands, except Pizza Hut, which saw sequential improvement. Operating EBITDA increased by 18% to INR 229 Cr, reflecting cost control and higher same-store sales despite rising inflation in raw materials and wages. Profit before taxes (PBT) turned positive at INR 5.7 Cr for the quarter, compared to a loss of INR 27 Cr in the prior year. For the half-year, consolidated revenue reached INR 30,999 Mn, up 13.4% year-over-year, with India revenue growing 12.0% to INR 20,935 Mn. International revenue rose 16.9% to INR 10,318 Mn. EBITDA for the half-year reached INR 4,834 Mn, up 21.1% year-over-year, with EBITDA margin expanding to 15.6%. The company emphasized transaction-led growth and on-premise channel performance, while noting challenges including food and fuel inflation, AI-driven job losses, and regulatory scrutiny. Management highlighted plans to focus on value offerings and customer retention strategies amid a K-shaped economic recovery in India. The merger with Yum! Brands is progressing, with CCI approval received.

The document acknowledges strong financial performance and growth metrics but also highlights ongoing macroeconomic and operational challenges.