Devyani International, one of India's largest quick-service restaurant operators with 2,200+ stores across India, Thailand, Nepal and Nigeria, reports its Q2 FY 2026-2027 numbers with the Sapphire Foods merger as the defining event of the year. The print will speak to whether the Operating EBITDA margin builds on Q1 FY27's 9.6% as LPG costs eased, and whether the Pizza Hut turnaround moves off a (2.2)% same-store sales decline and a Rs. 4 Cr brand-contribution loss.
| Results date | November 02, 2026 |
|---|---|
| Quarter | Q2 FY 2026-2027 |
| Previous quarter revenue | Rs. 1,580.52 Cr |
| Previous quarter PAT | Rs. 17.10 Cr |
| Previous quarter EBITDA margin | 16.1% (Reported EBITDA) |
| Market cap | Rs. 14,980.27 Cr |
| CMP | Rs. 121.45 |
The board meets on November 02, 2026 to consider the Q2 & H1 FY27 results for the period ended September 30, 2026. The company's October 27, 2026 exchange filing under SEBI LODR Reg 30(6) intimated the results and the same-day investor/analyst call.
An investor/analyst call is scheduled for November 2, 2026 at 2:00 PM IST, after the Q2 & H1 FY27 results are released earlier the same day. The intimation was filed under SEBI LODR Regulation 30(6) on October 27, 2026.
The Q2 FY27 print tests whether Devyani's turnaround and growth track extends into a second straight quarter, with the Sapphire Foods merger — CCI application filed September 10, 2026, completion targeted by end-FY27 — as the defining event. The demand backdrop firmed through the quarter: domestic GST collections accelerated from +6.5% YoY in June to +10.1% in July and September, and QSR was the fastest-growing retail category in both August (+15%) and September (+11%) per RAI, corroborating management's Q1-call statement that stable demand trends were reflected in Q2 performance till date. LPG — the flagged store-level cost swing — was a tailwind relative to Q1, with the Delhi 19-kg commercial cylinder cut Rs. 183.50 on July 1 and a further Rs. 202 on August 1 before a small Rs. 9.50 hike on September 1, leaving the quarter-average well below the June peak of Rs. 3,113.50; the key bridge is whether Operating EBITDA margin builds on Q1's 9.6% (vs 8.6% in Q3 and Q4 FY26), partly offset by food inflation at 7.74% in September and wage-cost inflation, with only a sub-0.5% menu price increase taken in Q1. Brand-level momentum is mixed — KFC India SSSG of +3.3% in Q1 after +4.9% in Q4 FY26, Costa Coffee at +10.2%, and Pizza Hut still the drag at (2.2)% with a Rs. 4 Cr brand-contribution loss — while international revenue grew +20.7% YoY in Q1. Management declined FY27 SSSG/overall guidance last quarter and has stated five priorities for the year, including opening new stores per earlier guidance, maintaining positive SSSG across the portfolio, and getting ready for the merged entity. The El Niño/driest-monsoon-since-2009 trajectory and the rupee trading near 95.6 through the quarter remain the flagged macro risks to the consumption recovery.
Guidance scorecard to test on the call: Management's stated goals from prior calls and where each stands:
Operating metric trajectory: Brand-level same-store sales and store counts entering Q2:
Strategic execution / merger and amalgamation updates: Corporate actions pending alongside the results:
Risks and headwinds to monitor: Management-flagged sensitivities for the quarter:
Consolidated revenue was Rs. 1,580.52 Cr, up 16.47% YoY and 10.00% QoQ, with PAT of Rs. 17.10 Cr versus a Rs. (9.84) Cr loss in Q4 FY26. The company reported its highest-ever EBITDA of Rs. 255 Cr at a 16.1% margin on the Reported EBITDA basis.
The amended Scheme was approved by the Board on August 26, 2026 with the exchange ratio unchanged at 177:100, and a joint CCI application was filed on September 10, 2026. Completion is targeted by end of FY27, with synergies estimated at Rs. 210–225 Cr annually and post-merger promoter holding diluting to 41.99% from 61.37%.
Pizza Hut India's same-store sales were (2.2)% in Q1 FY27 with a brand-contribution loss of Rs. 4 Cr, after FY26 SSSG of (5.3)% and negative brand contribution of Rs. (33) Mn. Management has said the turnaround will take a couple of years, with full strategic energy behind Pizza Hut in FY28 once the two entities combine.
Management has guided for 200–225 net new stores in FY27 on a standalone basis, including 100–110 KFC India additions (also stated as 110–120). In Q1 FY27, KFC added 11 net stores in India and 2 in Thailand, with BBK adding 3 net.
Management has given an open-ended, ADS-linked guidance: 20% KFC brand contribution margin upon crossing Rs. 105,000–110,000 average daily sales. KFC India ADS was last disclosed at Rs. 90,000 in Q3 FY26.