KFC, Pizza Hut Operator Sees Rs 23.9 Crore Q2 Loss

By siliconindia  |  Thursday, 06 November 2025, 04:15:40 PM IST

KFC, Pizza Hut Operator Sees Rs 23.9 Crore Q2 Loss
  • Devyani International reports Rs 23.9 crore loss, down from Rs 2.2 crore profit in Q1 FY26.
  • Consolidated revenue rises 13% YoY to Rs 1,377 crore, boosted by 263 new outlets.
  • EBITDA drops to 14.1% due to Sky Gate acquisition, festival impact, and urban consumption slowdown.
Devyani International Limited, operator of popular quick service restaurant (QSR) brands such as KFC and Pizza Hut, reported a loss of Rs 23.9 crore in Q2 FY26, compared to a profit of Rs 2.2 crore in the previous quarter (Q1 FY26), according to a stock exchange filing.
On a year-on-year basis, the losses widened sharply by 367 per cent from Rs 4.9 crore in Q2 FY25. The company attributed the downturn to out-of-home consumption being impacted as both Shraavana and Navaratri fell in the same quarter. Additionally, unseasonal rains, especially in eastern India during the second half of September, weighed on business performance.
Despite the losses, Devyani International’s consolidated revenues grew 13 per cent year-on-year to Rs 1,377 crore. The growth was driven by the opening of 263 new outlets over the past year, taking the total store count to 2,184 units. KFC India contributed Rs 572.3 crore in revenue, up 5.3 per cent YoY.
The company’s EBITDA margin fell to 14.1 per cent in Q2, down from 16.3 per cent a year earlier, partly due to losses from its acquisition of Sky Gate Hospitality, the parent company of Biryani By Kilo. Devyani also cited declining demand and strong competition from local restaurants as challenges, noting that urban consumption is only starting to recover after a period of slow growth.
In April, Devyani International announced partnerships with three international brands New York Fries, Tealive, and Sanook Kitchen to strengthen its portfolio. The company reported strong revenue momentum from Biryani By Kilo and Goila Butter Chicken post-Dussehra. Integration of Skygate with Devyani International remains on track, with the company aiming to achieve brand contribution break-even by March 2026.

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