Devyani International Reports Nearly Four-Fold Profit Growth as Pizza Hut and KFC Sales Strengthen

Devyani International, the Indian operator of Pizza Hut and KFC, reported a nearly four-fold increase in its quarterly net profit for the period ending June 30, driven by stronger customer demand across its quick-service restaurant outlets. The company posted a consolidated net profit of ₹146.5 million, up from ₹36.9 million during the same quarter last year. Revenue also grew by 16.5% year-on-year to ₹15.81 billion, reflecting improved sales despite a competitive market.

The company said its value-focused offerings and stable consumer demand helped support growth, while same-store sales at KFC outlets increased by 3.3%, marking the second consecutive quarter of positive growth. Gross margins also improved to 69.1%, supported by better operational efficiency, even as overall expenses rose by 15.3%. Chairman Ravi Kant Jaipuria noted that although demand has remained stable, weather uncertainties linked to El Niño and broader economic conditions could influence future consumer spending.

Devyani International also confirmed that its proposed merger with Sapphire Foods is progressing as planned. The all-share deal, announced earlier this year, is expected to create one of India’s largest quick-service restaurant operators by combining the country’s biggest franchisees of KFC and Pizza Hut. Following the earnings announcement, the company’s shares climbed as much as 9% during trading before settling around 4.9% higher, outperforming the broader market.

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