Total expenses increased 14.4% year-on-year (YoY) to Rs 1,408.47 crore in Q2 FY26, driven by higher cost of materials consumed (up 18.6% YoY), employee benefits expenses (up 10% YoY), and other expenses (up 15.4% YoY).

The company stated that it expanded its network to 2,184 stores during the quarter, adding 39 net new stores, including 30 KFC outlets in India. It also test-launched the Tealive brand with six stores in the country. Operations in Thailand continued to progress well, while the turnaround of Skygate remains on track, with brand contribution break-even targeted by March 2026.

Ravi Jaipuria, non-executive chairman of Devyani International, said, “Q2 saw the transition to GST 2.0—a historic move to simplify and harmonize the GST framework into a 2-tier structure. The initial signs are encouraging, with significant upside in consumption categories like automobiles and durables, while the impact on the QSR category has been minimal. The company has already passed on the benefits of reduced input costs to consumers.

The company continued to expand its network with 30 net additions to KFC and 3 to Pizza Hut. It also rolled out the Tealive brand with 6 new outlets during the quarter as a test launch, receiving positive customer feedback.

Biryani by Kilo and Goila Butter Chicken from the Skygate portfolio continued to perform well with strong post-Dussehra momentum. The integration of Skygate with DIL remains on track, with brand contribution break-even targeted by March 2026.

Despite challenges like Shraavana, Navaratri, and unseasonal rains impacting out-of-home consumption, consolidated revenues grew 13% YoY to Rs 1,377 crore, supported by brand resilience and disciplined execution.”

Devyani International (DIL) is the largest franchisee of Yum Brands in India and one of the country’s leading quick service restaurant (QSR) operators. The company also operates Costa Coffee outlets across India under a franchise agreement.

Shares of Devyani International shed 0.75% to Rs 158.50 on the BSE.