It had incurred a net loss of Rs 76.46 crore in the October-December period a year ago, according to a regulatory filing from Devyani International Ltd (DIL).
Revenue from operations was up 11.31 per cent to Rs 1,440.9 crore in December quarter FY26.
The company has a “broad-based improvement in margins” and its Biryani by Kilo business, acquired last year, achieved breakeven, said an earnings statement from DIL.
Total expenses of the Quick Service Restaurant (QSR) operator were up 11.71 per cent in December quarter to Rs 1,446.5 crore. Total income, which includes other income, was at Rs 1,453.22 crore, up 11.48 per cent year-on-year.
DIL is the largest franchisee for Yum Brands’ QSR chains – KFC & Pizza Hut in India. In addition, DIL is the sole franchisee for Costa Coffee, Tea Live, New York Fries and Sanook Kitchen in India. It also owns the South Indian vegetarian food chain Vaango.
It was operating a total of 2,279 stores as of December 31, 2025, which includes 1,877 in the domestic market and 402 in the international market. It was operating 1,174 KFC stores, 648 Pizza Hut and 218 Own-Brands and 214 Franchisee-Brands. It added 95 net new stores in which 54 additions were from KFC India and 18 to Pizza Hut. It also scaled up Biryani by Kilo by adding 13 stores.
“Our business continues to grow in a sustained manner. India operations grew 12.1 per cent YoY, while consolidated revenues reached Rs 1,441 crore, growing 11.3 per cent YoY. Our international business continues to gather strength from operations and profitability perspective and the same is reflected. in the steady improvement in the results,” Chairman Ravi Jaipuria said.
DIL has also started the process of turnaround of the Pizza Hut business by rationalising loss-making stores.
“Our idea is to bring a sharper focus to this exercise and therefore we will open new stores only to compensate for the closure of loss-making stores. This will also help us to utilize the existing assets and equipment in our new stores and bring down the capex for the new openings as well,” he said.
Last month, Sapphire Foods India and DIL, the two leading franchise operators of Yum! Brands for its KFC and Pizza Hut brands announced merger, through a share swap, which will create one of the largest chains in India with over 3,000 stores operated by the combined entity.
Meanwhile, in a separate filing, DIL said its board has approved acquisition of 11.4 per cent additional equity stake in Sky Gate Hospitality from the promoters for a consideration of Rs 57.5 crore through a mix of cash and issuance of Non-Convertible Redeemable Preference Shares.
DIL had last year acquired Sky Gate Hospitality, which owns brands such as Biryani By Kilo and Goila Butter Chicken.
Shares of Devyani International Ltd on Wednesday settled at Rs 123.30 apiece on BSE, up 6.06 per cent from the previous close.