Pizza Hut India operator's quarterly profit jumps nearly four-fold on stronger sales (updated)

Devyani International

29/07/2026 08:05

Rewrites, adds shares, chairman comment
July 29 (Reuters) - Devyani International DEVY.NS, the operator of KFC and Pizza Hut in India, reported a nearly four-fold rise in quarterly profit on Wednesday, helped by improved demand at its quick-service outlets, sending its shares to an over 2-month high.
Quick-service restaurant chains in the world's most-populous country have stepped up discounts and value meals to attract cost-conscious consumers amid rising competition from new entrants such as California Burrito, Wow! Momo and Blue Tokai Coffee. 
Larger chains are better placed to absorb higher energy costs than standalone restaurants, which have been hit by rising cooking gas prices due to the Iran war that has thwarted energy supplies from the Gulf.
The operating environment has remained volatile, Devyani International Chairman Ravi Kant Jaipuria said.
"While the demand has remained stable so far, the forecast of a below-normal season, combined with El Niño risk, is a reminder that consumption recovery in India rarely moves in a straight line."
Devyani, a franchisee of U.S.-based Yum Brands YUM.N, reported consolidated net profit of 146.5 million rupees ($1.53 million) for the three months ended June 30 compared with 36.9 million rupees a year ago. 
The company said its merger with Sapphire Foods continues to progress along expected timelines. The all-share deal, announced in January, will create one of India's largest quick-service restaurant operators by combining the country's two biggest KFC and Pizza Hut franchisees.
Devyani's revenue rose 16.5% to 15.81 billion rupees in the quarter, while expenses rose 15.3%.
     Same-store sales at its KFC outlets rose 3.3%, marking the second straight quarter of growth.
Consolidated gross margin improved by 30 basis points sequentially and by 90 basis points from a year earlier to 69.1%.
Shares of Devyani rose as much as 9% and were last trading 4.9% higher at 119.3 rupees as of 2:00 p.m., while India's benchmark Nifty 50 .NSEI index was up 1.1%.
     
($1 = 95.7100 Indian rupees)

 (Reporting by Mridula Kumar in Bengaluru; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)
 ((mridula.kumar@thomsonreuters.com))