Mumbai — Devyani International Limited, the operator of KFC, Pizza Hut, and other quick-service restaurant brands, reported a loss of Rs 23.9 crore in the second quarter of FY26, reversing a small profit of Rs 2.2 crore in the previous quarter. On a year-over-year basis, the loss deepened significantly from Rs 4.9 crore in the same period last year.
The company said its performance was affected by a slowdown in out-of-home dining, as both Shraavana and Navaratri fell within the quarter. Unseasonal rainfall, particularly in eastern India during the latter half of September, further weighed on foot traffic and demand.
Despite the loss, total consolidated revenue rose to Rs 1,377 crore, reflecting 13 percent growth from a year earlier. The increase was driven by aggressive expansion, with 263 new outlets added over the past year, bringing the total store count to 2,184.
KFC India revenue rose 5.3 percent year-over-year to Rs 572.3 crore. However, the company’s EBITDA margin declined to 14.1 percent from 16.3 percent a year ago. The drop was partly attributed to losses stemming from the acquisition of Sky Gate Hospitality, the parent company of Biryani By Kilo.
The company also cited softening demand and rising competition from local restaurant operators, noting that consumer spending in urban markets is still in the early stages of recovery.
In April, Devyani International announced partnerships with three international brands — New York Fries, Tealive, and Sanook Kitchen — in an effort to broaden its portfolio.
The company said it has begun to see improved performance from Biryani By Kilo and Goila Butter Chicken following the Dussehra festival period. Integration of Sky Gate Hospitality into Devyani International remains underway, and the company expects the acquired brands to reach contribution break-even by March 2026. (Source: IANS)
