Devyani International Limited posts Rs 5.7 crore quarterly PBT

Devyani International Limited reported Rs 5.7 crore in profit before tax for the quarter ended September 30, 2026, reversing a prior-year loss. DIL said consolidated sales rose 10.4% year on year to Rs 1,519.4 crore, while operating EBITDA increased 34% to Rs 125.1 crore and its operating EBITDA margin was 8.2%.

What did DIL report in Q2 FY2027?

DIL reported Rs 5.7 crore of profit before tax, or PBT, in Q2 FY2027, compared with a loss in the corresponding quarter a year earlier. The November 2, 2026 announcement did not disclose the amount of the prior-year quarterly loss, but identified the move to positive PBT as a quarterly performance highlight.

The Q2 result followed a first-half improvement. DIL reported PBT of Rs 29 crore for H1 FY2027, compared with a Rs 24 crore loss in the previous year's first half, showing that the improvement extended across the six months ended September 30, 2026.

Consolidated sales reached Rs 1,519.4 crore in Q2 FY2027, up 10.4% year on year. Management linked the quarter's outcome to positive same-store sales growth, transaction-led growth, growth in on-premises sales and cost control, while noting steep inflation in raw materials and wages.

How did DIL's sales and same-store sales change?

DIL's sales increased 10.4% year on year to Rs 1,519.4 crore in Q2 FY2027, supported by positive same-store sales growth, or SSSG, across most of its portfolio. KFC recorded SSSG of 4.4%, Costa Coffee reported 9.9%, and Biryani By Kilo reported 8.1% for the quarter ended September 30, 2026.

Costa Coffee's 9.9% SSSG was the highest among the three disclosed brand results, compared with 8.1% for Biryani By Kilo and 4.4% for KFC. Chairman Ravi Jaipuria said positive SSSG across DIL's India portfolio ranged from 4% to 9%, except PH, which showed sequential improvement without a percentage being disclosed.

Management said the sales improvement was led by transactions and on-premises channel sales. The release did not quantify transactions or channel sales, but it presented those factors alongside the 10.4% sales increase and the 70 net new stores added during Q2 FY2027.

DIL ended the September 2026 quarter with 2,325 stores globally, including 1,923 stores in India. Its network spans India, Thailand, Nigeria and Nepal, while the release specifically stated that the 50 KFC net additions during the quarter were in India.

Why did DIL's profitability improve?

DIL reported operating earnings before interest, tax, depreciation and amortisation, or operating EBITDA, of Rs 125.1 crore for Q2 FY2027, up 34% year on year, with an 8.2% margin. The company said higher same-store sales created operating leverage and that tight cost control helped offset raw-material and wage inflation.

Brand contribution margins rose by 1.3 percentage points in Q2 FY2027 and by 1.2 percentage points year to date. DIL did not disclose the underlying brand contribution margin levels, but the stated gains show that its reported margin improvement covered both the quarter and the financial year to date.

The announcement also highlighted quarterly reported EBITDA of Rs 229 crore. Jaipuria said EBITDA rose by nearly 18% to Rs 229 crore, which differs from the separately disclosed 34% increase in operating EBITDA to Rs 125.1 crore; the release did not provide a reconciliation or definition explaining the relationship between the two measures.

The Rs 5.7 crore PBT outcome was disclosed alongside the 8.2% operating EBITDA margin and the 1.3-percentage-point increase in quarterly brand contribution margin. DIL therefore presented the return to positive PBT as occurring with higher sales and margins, rather than attributing it to one separately quantified item.

What are DIL's expansion and merger plans?

DIL said it remains on track to add 200 to 220 net new stores in FY2027 after adding 70 during Q2 FY2027. KFC accounted for 50 of the 70 net additions, or more than two-thirds of the quarterly total, and the group network reached 2,325 stores at September 30, 2026.

Jaipuria said the planned FY2027 openings would retain a focus on suitable locations and a clear line of sight to profitability. The 200-to-220-store range is management guidance rather than a reported result, and the announcement did not specify the planned allocation of additions among KFC, Costa Coffee, Biryani By Kilo or other formats.

DIL said its new management team was settling in and that pre-merger preparation was progressing according to its plans. The company said it had received approval from the Competition Commission of India, or CCI, and expected merger approvals in line with its initial plans, but did not disclose a completion date.

The company described the merger as still requiring the approvals referenced by management. Its November 2, 2026 release did not identify the remaining approvals, the merger timetable or a financial effect, leaving those matters unresolved alongside the FY2027 store-opening target.

Conclusion

DIL's Q2 FY2027 release shows a return to positive quarterly PBT of Rs 5.7 crore after a prior-year loss, alongside Rs 1,519.4 crore in sales and disclosed SSSG of 4.4% at KFC, 9.9% at Costa Coffee and 8.1% at Biryani By Kilo. Operating EBITDA rose 34% to Rs 125.1 crore, while quarterly brand contribution margins increased by 1.3 percentage points.

The next disclosed operating milestone is management's target of 200 to 220 net new stores in FY2027, following 70 additions in Q2 FY2027. The merger process is also a matter to watch: DIL has received CCI approval and management expects remaining approvals in line with its plan, but the company has not provided a completion date.