Devyani International Q2 FY27: Sales Grow 10.4% to ₹1,519 Cr, EBITDA Jumps 18% to ₹229 Cr
Devyani International reported Q2 FY27 consolidated sales of ₹1,519 crore, up 10.4% YoY. EBITDA grew 18% to ₹229 crore. The company added 70 net new stores, reaching 1,923 in India. Key initiatives include value offerings at KFC and strategic revival plans for Pizza Hut. CCI approval for the merger with Sapphire Foods has been received.
The results demonstrate robust financial performance, strategic expansion, and progress on a significant corporate action (merger), all of which have a material impact on the company's outlook.
The company reported strong sales and EBITDA growth, improved profitability, and significant store expansion. Positive developments regarding the merger with Sapphire Foods also contribute to the positive sentiment.
Devyani International Limited announced its unaudited financial results for the quarter and half-year ended September 30, 2026. The company reported consolidated sales of ₹1,519 crore, a year-on-year growth of 10.4%. Despite significant inflation in raw materials and wages, strong same-store sales growth (SSSG) and tight cost control led to an 18% increase in EBITDA, reaching ₹229 crore. This marks one of the best Q2 operating EBITDA figures for the company, contributing to a profit before tax (PBT) of ₹5.7 crore for the quarter, compared to a loss in the previous year. For the first half of FY27, the company posted a PBT of ₹29 crore, a significant improvement from a loss of ₹24 crore in the prior year.
The company added 70 net new stores during the quarter, with KFC leading the expansion with 50 net new units in India, bringing the total store footprint to 1,923 in India and 2,325 globally. Devyani International is on track to meet its full-year guidance of 200 to 220 net new store additions.
Key brand performance highlights include: * KFC: SSSG of 4.4%, revenue grew 12.3% to ₹642 crore. 50 net new stores were added, bringing the network to 844. * Pizza Hut: SSSG decline narrowed to -1.4%. Revenue was ₹184 crore. The company is working on new product ideas and value offerings for a long-term revival. * Own Brands (Vaango and Biryani By Kilo): Revenue of ₹95 crore, up nearly 11% year-on-year. Biryani By Kilo showed strong traction with an 8.1% SSSG, and Vaango delivered 6.9% SSSG. * Franchise Brands (Costa): Delivered an impressive 9.9% SSSG, with revenue growth steady at 7% year-on-year. * International Business: Posted quarterly revenues of ₹509 crore, despite disruptions in Thailand.
The company has received approval from the Competition Commission of India (CCI) for its proposed merger with Sapphire Foods and is awaiting no objection from SEBI. Devyani International remains optimistic about closing the merger process by the end of the current financial year.
Management commentary highlighted the challenges of inflation in raw materials, wages, and utilities, but emphasized strategies to mitigate these through calibrated price hikes, promotions, and cost-saving measures. The company is focused on value offerings, particularly for entry-level price points, to navigate the current macroeconomic environment and consumer sentiment.
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