Devyani International Q2 profit returns, owners post loss

Devyani International Limited, referred to here as Devyani International, reported a Rs 3.462 crore consolidated profit for the quarter ended 30 September 2026, reversing a Rs 23.946 crore loss a year earlier, as revenue rose to Rs 1,519.425 crore. However, the result attributable to owners was a Rs 24.2 lakh loss because Rs 3.704 crore of profit was attributable to non-controlling interests.

Why did Devyani International return to consolidated profit in Q2?

Devyani International returned to consolidated profit because total income exceeded total expenses by Rs 5.919 crore before the share of joint-venture loss, compared with a Rs 26.583 crore pre-joint-venture loss in the quarter ended 30 September 2025. Revenue from operations increased from Rs 1,376.751 crore to Rs 1,519.425 crore, while other income rose from Rs 5.134 crore to Rs 11.96 crore. Total income therefore increased to Rs 1,531.385 crore from Rs 1,381.885 crore.

The improvement came despite total expenses increasing from Rs 1,408.468 crore to Rs 1,525.466 crore. Cost of materials consumed rose by Rs 35.185 crore to Rs 478.15 crore, employee benefits expense increased by Rs 9.641 crore to Rs 211.331 crore, and other expenses rose by Rs 63.461 crore to Rs 600.402 crore. Depreciation and amortisation increased by Rs 18.098 crore to Rs 173.279 crore, while finance costs fell by Rs 3.526 crore to Rs 65.309 crore.

After a Rs 22.9 lakh share of loss from joint ventures and Rs 2.228 crore of tax expense, Devyani International reported Rs 3.462 crore profit from continuing operations. In the prior-year quarter, continuing operations posted a Rs 21.581 crore loss after a Rs 5.201 crore tax credit. That earlier period also included a Rs 2.365 crore after-tax loss from discontinued operations, taking its total quarterly loss to Rs 23.946 crore.

Why was Devyani International's result attributable to owners negative?

Devyani International's result attributable to owners was negative because it allocated Rs 3.704 crore of the quarter's Rs 3.462 crore consolidated profit to non-controlling interests. This left a Rs 24.2 lakh loss attributable to owners. Non-controlling interests are equity interests in consolidated entities that are not held by the company's owners.

The attribution differed from the quarter ended 30 June 2026, when Devyani International reported Rs 17.104 crore consolidated profit, including Rs 14.647 crore attributable to owners and Rs 2.457 crore attributable to non-controlling interests. In the September 2025 quarter, the Rs 23.946 crore consolidated loss comprised a Rs 21.887 crore loss attributable to owners and a Rs 2.059 crore loss attributable to non-controlling interests.

The same split affected comprehensive income. Devyani International recorded Rs 6.065 crore of negative other comprehensive income in the September 2026 quarter, including Rs 4.306 crore attributable to owners and Rs 1.759 crore attributable to non-controlling interests. Consequently, total comprehensive income was a Rs 2.603 crore loss, of which owners accounted for a Rs 4.548 crore loss while non-controlling interests recorded Rs 1.945 crore income.

Earnings per share from continuing operations were reported as a loss of Rs 0.00 per equity share, basic and diluted, for the September 2026 quarter. This compares with a loss of Rs 0.16 per share from continuing operations a year earlier and earnings of Rs 0.12 per share in the June 2026 quarter. The financial results state that quarterly per-share figures are not annualised.

How did Devyani International's first-half profit and cash flow compare?

Devyani International reported Rs 20.566 crore consolidated profit for the six months ended 30 September 2026, reversing a Rs 21.718 crore loss in the comparable 2025 half-year. Revenue from operations rose to Rs 3,099.941 crore from Rs 2,733.72 crore. Profit before tax from continuing operations was Rs 28.612 crore, compared with a Rs 23.843 crore loss a year earlier.

The six-month improvement occurred while total expenses increased to Rs 3,102.314 crore from Rs 2,775.865 crore. Depreciation and amortisation rose to Rs 353.633 crore from Rs 304.856 crore and other expenses rose to Rs 1,206.994 crore from Rs 1,056.185 crore. Finance costs were Rs 135.453 crore, compared with Rs 135.614 crore, while net impairment provision fell to Rs 1.489 crore from Rs 5.114 crore.

Net cash generated from operating activities increased to Rs 485.802 crore in the six months ended 30 September 2026 from Rs 401.281 crore a year earlier. Operating profit before working-capital changes rose to Rs 492.635 crore from Rs 401.008 crore. Investing activities used Rs 211.737 crore, including Rs 218.151 crore spent on property, plant, equipment and intangible assets.

Financing activities used Rs 612.432 crore in the 2026 half-year, compared with Rs 260.394 crore in the prior-year period. The outflow included Rs 230.154 crore of net repayment of short-term borrowings, Rs 147.898 crore repayment of non-current borrowings, Rs 98.712 crore of lease-principal payments and Rs 109.119 crore of lease-interest payments. Cash and cash equivalents consequently declined by Rs 338.303 crore to Rs 152.947 crore at 30 September 2026 from Rs 491.25 crore at the beginning of the period.

What changed in Devyani International's balance sheet?

Devyani International's total assets decreased to Rs 6,373.474 crore at 30 September 2026 from Rs 6,749.973 crore at 31 March 2026. Current assets declined by Rs 326.148 crore to Rs 526.278 crore, principally reflecting cash and cash equivalents falling to Rs 152.947 crore from Rs 491.25 crore. Trade receivables decreased to Rs 52.234 crore from Rs 64.078 crore, while inventories increased to Rs 181.548 crore from Rs 164.636 crore.

Total equity increased to Rs 1,898.872 crore from Rs 1,885.209 crore over the six months. Equity attributable to owners rose to Rs 1,545.059 crore from Rs 1,541.822 crore, and non-controlling interests increased to Rs 353.813 crore from Rs 343.387 crore. Paid-up equity share capital was unchanged at Rs 123.294 crore at both reporting dates.

Total liabilities fell to Rs 4,474.602 crore at 30 September 2026 from Rs 4,864.764 crore at 31 March 2026. Current borrowings declined to Rs 302.696 crore from Rs 574.761 crore, and non-current borrowings decreased to Rs 681.34 crore from Rs 785.633 crore. Non-current lease liabilities moved to Rs 2,247.993 crore from Rs 2,256.724 crore, while current lease liabilities increased to Rs 221.468 crore from Rs 216.028 crore.

Conclusion

Devyani International's September 2026 quarter returned to consolidated profit on higher revenue and reversed the loss reported a year earlier. Yet the Rs 3.462 crore consolidated profit did not produce a positive result for owners because Rs 3.704 crore was attributed to non-controlling interests. The separation between consolidated profit and owner-attributable profit is therefore central to the reported quarter.

The principal disclosed matter to watch is whether the owner-attributable result turns positive after the September-quarter Rs 24.2 lakh loss. The next results will also provide an update on cash after the first-half Rs 612.432 crore financing outflow, the Rs 218.151 crore investing outflow for property, plant, equipment and intangible assets, and closing cash of Rs 152.947 crore.