Shares of Devyani International declined more than 8% from the day’s highs after the company reported its September quarter earnings on Monday, November 2. The company saw a 10.3% year-on-year (YoY) increase in consolidated revenue to ₹1,519 crore for the second quarter from ₹1,376.7 crore in the corresponding quarter last year.
The company’s net loss narrowed sharply to ₹0.2 crore from ₹22 crore a year ago. Earnings before interest, tax, depreciation and amortisation (EBITDA) rose 21.4% YoY to ₹233 crore, compared with ₹192 crore in Q2 FY26.
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EBITDA margin expanded by 135 basis points to 15.35%, from 14% in the year-ago quarter.
The company reported a profit before tax of ₹5.7 crore for the quarter, compared with a loss in the corresponding period last year, according to its investor presentation.
70 new stores added during the quarter
Devyani International added 70 net new stores during Q2 FY27, taking its total store count to 2,325 as of September 30, 2026. This included 1,923 stores in India and 402 international outlets.
KFC led the store additions, opening 50 net new outlets in India during the quarter. Pizza Hut added six stores, while franchisee brands and the company’s own brands added five and seven stores, respectively.
The company remains on track to add 200-220 net new stores during FY27.
KFC, Costa and Biryani By Kilo report positive same-store sales growth
Devyani International said it maintained positive same-store sales growth (SSSG) momentum across most of its brand portfolio in India. KFC India reported SSSG of 4.4% in Q2FY27, improving sequentially. Costa Coffee and Biryani By Kilo recorded SSSG of more than 8%.
Pizza Hut’s SSSG also improved sequentially, although it remained negative at 1.4%.
Chairman Ravi Jaipuria said the company recorded positive SSSG ranging from 4% to 9% across its brand portfolio in India, except Pizza Hut, which saw sequential improvement.
He flagged food and fuel inflation, pressure on household budgets and evolving regulatory requirements as near-term challenges for the business.
The company highlighted its focus on customer value propositions during the quarter. KFC’s ₹99 Krisper meal helped attract new customers, while Pizza Hut launched its Triple Spice range. Biryani By Kilo introduced Sattvik Biryani.
India and international business performance
Revenue from Devyani International’s India business rose 9.1% YoY to ₹1,022.6 crore in Q2 FY27. Revenue from its international business increased 13.2% to ₹508.7 crore.
The international business reported operating EBITDA of ₹63.7 crore, compared with ₹47.1 crore in the year-ago quarter. India’s operating EBITDA rose to ₹61.1 crore from ₹46.2 crore.
For the first half of FY27, consolidated revenue increased 13.4% YoY to ₹3,099 crore. India revenue grew 12% to ₹2,093.5 crore, while international revenue rose 16.9% to ₹1,031.8 crore. Consolidated EBITDA for the first half increased 21.1% to ₹483.4 crore, with the margin improving by 100 basis points to 15.6%.
Jaipuria said the company was looking to respond to the macroeconomic environment through sharper value offerings at entry price points, consistent marketing and efforts to bring customers back to its restaurants.
He also said heightened inspections by food authorities across the country had disrupted store operations during the inspection process. The company said it supported a stronger focus on hygiene and operational controls, while calling for consistent application of the requirements.
On the proposed merger, Jaipuria said preparations were progressing and that the company had received approval from the Competition Commission of India (CCI).
Following the Q2 results announcement, shares of Devyani International fell about 8% from the day’s highs and were trading at ₹ 118.88 as of 12.30 pm, down 1.3%. The stock has declined more than 19% so far in 2026 and 26% over the last one year.
Devyani International shares fall 8% from day’s high despite narrower Q2 loss, 10% revenue growth