KFC, Pizza Hut operator Devyani International sees 90% drop in Q1 FY26 profit to Rs 2.2 crore
The Quick Service Chain operator's revenue from operations rose by 11% year-on-year from Rs 1,222 crore in Q1 FY25 to Rs 1,357 crore
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KFC and Pizza Hut chain operator Devyani International Limited announced first first-quarter result for the fiscal year 2026 on Wednesday. The company's profit declined by 90% to Rs 2.2 crore in Q1 FY26. Devyani International had posted a profit of Rs 22.43 crore in Q1 FY2025.
The Quick Service Chain operator's revenue from operations rose by 11% year-on-year from Rs 1,222 crore in Q1 FY25 to Rs 1,357 crore. The revenue of KFC India was up by 10.5% YoY to Rs 612.6 crore in the June quarter, while Pizza Hut India's revenue surged to Rs 187.3 crore, up 3% YoY.
“India’s QSR industry is on a structural growth trajectory – underpinned by rising urbanization, growing income levels, increasing digital adoption, an increase in female work participation rate and a growing appetite for convenience esp. among younger consumers. While near-term macro factors have led to a phase of soft consumer demand, we see a better outlook for the industry in the coming times. We are learning from the evolving consumer trends, and we need to reset our business to have a differentiated and compelling proposition for our consumers, whether they are online or offline. We strongly believe that our industry will remain a prime beneficiary of evolving consumer behaviour. It’s important that job creation continues in the economy with rising per capita income, which will lead to higher consumption," Ravi Jaipuria, Non-Executive Chairman, Devyani International said.
During the quarter, Devyani International expanded its store count to 2,145 after opening 106 new stores in Q1 FY26. The QSR chain owner also increased its stake by 86.13% in Sky Gate by investing Rs 103 crore.
Sky Gate Hospitality owns a portfolio of fast-growing foodservice brands, including ‘Biryani By Kilo’, ‘Goila Butter Chicken’, ‘The Bhojan’, ‘Get-A-Way’, and ‘Krazy Kebab Co'. Sky Gate Hospitality has 105 outlets at present.
On the international front, Devyani International's revenues were up by 11.2% YoY to Rs 433 crore. During the quarter, the company added 2 Tealive stores in Thailand and the first New York Fries store in Mumbai.
"As one of the leading QSR players, we are well-positioned to benefit from the rebound in consumer spending. Our multicuisine, multi-format strategy caters to a broad spectrum of consumer tastes, occasions, and price points, while diversifying away from any category or geography specific risks. It also enhances our ability to capture opportunities across varied markets and evolving consumer trends. With the strength of our brands and our execution capabilities, we are confident of our ability to deliver consistent growth. Our focus will remain on scaling profitably, strengthening both our core and emerging brands, and creating long-term value for all stakeholders," Jaipuria added.
