Devyani Q1 profit nearly quadruples as revenue rises 16.5%

Pizza Hut and KFC India operator Devyani International posted consolidated net profit of Rs 14.65 crore for Q1 FY27, versus Rs 3.69 crore a year earlier. Revenue from operations rose 16.5% YoY to Rs 1,580.5 crore.

— Source publishedWed, 29 Jul, 2026, 12:35 IST·First seen Wed, 29 Jul, 2026, 12:39 IST·Source ET Small Business

What happened

Devyani International, which operates Pizza Hut and KFC in India, reported Q1 FY27 consolidated net profit of Rs 14.65 crore, nearly four times the prior-year

Key facts

  • Consolidated net profit: Rs 14.65 crore, up from Rs 3.69 crore year earlier (nearly 4x)
  • Revenue from operations: Rs 1,580.5 crore, up 16.5% YoY from Rs 1,357 crore
  • Total income: Rs 1,599.7 crore, up from Rs 1,370.5 crore
  • Profit before tax from continuing operations: Rs 22.92 crore, up from Rs 2.94 crore
  • Total expenses: Rs 1,576.8 crore, up from Rs 1,367.4 crore

Why this matters

Devyani’s improved profitability and double-digit revenue growth enhance its capacity to pursue selective store expansion, brand partnerships and adjacent-market opportunities.

What to watch

  • India same-store sales growth by KFC and Pizza Hut, including dine-in versus delivery mix.
  • Restaurant-level EBITDA margin and whether profit growth remains ahead of revenue growth.
  • Net new-store openings, closures and management commentary on store payback periods.
  • Pizza Hut traffic, average ticket and promotional intensity relative to competing pizza and burger chains.
  • Food inflation, wage costs, rental escalations and delivery-platform commission trends.
  • Any change in losses, capital needs or operating performance in overseas businesses.
  • Prioritize KFC store additions in high-throughput catchments while tightening new-store payback thresholds.
  • Use targeted value bundles, loyalty and delivery-led offers to rebuild Pizza Hut traffic without broad-based discounting.
  • Increase menu engineering, local sourcing and labor-productivity initiatives to protect restaurant-level margins.
  • Allocate capital selectively across India and international operations, favoring formats and markets with demonstrated unit economics.