Archive · 6 Nov 2025
Devyani International Posts Q2 Loss Despite Revenue Growth
Imagine Devyani International is a company that runs popular fast-food restaurants like KFC and Pizza Hut.
In the last three months, they made more money selling food than they did last year, which is good news.
However, even though they made more money, they ended up losing a small amount of money overall.
This happened because their expenses increased, and their profit margins went down a bit.
The company also opened many new restaurants during this time, continuing to grow its business.
They are also navigating changes in the country's tax system, called GST 2.0, which they believe is having a minimal impact on their business.
Despite the recent loss, the company is still expanding and expects future performance to be shaped by these growth efforts and market adjustments.
Devyani International reported a net loss of ₹21.8 crore for the September quarter, compared to a marginal profit last year.
Revenue increased by 12.7% year-on-year to ₹1,376.7 crore.
EBITDA decreased by 1.8% to ₹192 crore, and margins contracted to 14% from 16%.
The company expanded its store network, adding 39 net new outlets during the quarter, reaching a total of 2,184 stores.
Shares of Devyani International fell 3% following the announcement of its quarterly results.
- Who
- Devyani International, an operator of KFC and Pizza Hut in India
- What
- Reported a net loss of ₹21.8 crore for the September quarter, despite a 12.7% rise in revenue to ₹1,376.7 crore. Shares dropped 3% following the announcement.
- When
- September quarter (Q2 FY26), with shares falling on Thursday, November 6, 2025.
- Where
- India
- Why
- The net loss was reported despite revenue growth, with factors like reduced EBITDA margins and sector-wide adjustments to new GST norms impacting profitability.
Analyst Concerns
Company Outlook
Financial Performance
Analyst Concerns
Shares fell 3% following a net loss of ₹21.8 crore and a contraction in EBITDA margins to 14% from 16% year-on-year, indicating profitability pressure.
Company Outlook
Revenue increased by 12.7% to ₹1,376.7 crore, and the company added 39 net new outlets, signaling growth in its store network. The company states the impact of GST 2.0 has been minimal on its business and that benefits of reduced input costs have been passed to consumers.
- Company
- Devyani International
- Reporting Period
- September Quarter (Q2 FY26)
- Net Loss
- ₹21.8 crore
- Previous Year Net Profit
- ₹0.02 crore
- Revenue
- ₹1,376.7 crore
- Revenue Growth (YoY)
- 12.7%
- EBITDA
- ₹192 crore
- EBITDA Margin
- 14%
- Store Network
- 2,184 outlets
- New Outlets Added in Q2
- 39
Sources
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