Devyani International Q1 Results: Net profit falls nearly 90% despite revenue growth; margin narrows

Shares of Devyani International Ltd. fell from the highs of the day after its net profit for the June quarter declined nearly 90% from the same quarter last year.Devyani International, India’s largest franchisee for Yum Brands, operating KFC and Pizza Hut outlets, reported a net profit of ₹3.6 crore for the June quarter, a decline of 88% from the year-ago period.

Its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) for the quarter declined by 4.6% from last year to ₹206 crore, while margin narrowed by 250 basis points year-on-year to 15.2% from 17.7%.

Revenue for the quarter increased by 11% from the year-ago period to ₹1,357 crore from ₹1,222 crore.
During the quarter, sales at KFC India grew by 10.5% from last year to ₹612.6 crore, while Pizza Hut India sales remained sluggish at 3% from last year to ₹187.3 crore. International business revenue increased by 11.2% from last year to ₹433.2 crore.Devyani International added 106 new stores during the quarter, taking the total store count to 2,145. The company also invested an additional ₹103 crore in Sky Gate, increasing its stake to 86.13%.

“While near-term macro factors have led to a phase of soft consumer demand, we see a better outlook for the industry in coming times. We are learning from the evolving consumer trends, and we need to reset our business to have a differentiated and compelling proposition for our consumers whether they are online or offline,” Ravi Jaipuria, Non-Executive Chairman of Devyani International said in a statement.

“Our multicuisine, multi-format strategy caters to a broad spectrum of consumer tastes, occasions, and price points, while diversifying away from any category or geography specific risks,” he added.

Shares of Devyani International are recovering from the lows of the day, currently trading 0.9% lower a ₹152.12. The stock is down 10% in the last one month and 17% so far in 2025.