Devyani International Q3 FY26 Earnings Results: Revenue Rises 11%, Expands Store Network and Strengthens Margins

Devyani International posted Q3 revenue of ₹14,409 million, marking an 11.3% year-on-year increase.

• KFC India revenue grew 5.9% to ₹6,032 million.
• Pizza Hut India revenue declined 6.3% to ₹1,781 million.
• Own brands revenue rose 3.3% on a like-for-like basis to ₹938 million.
• International business revenue increased 10.1% to ₹4,734 million.

The company reported EBITDA of ₹2,267 million with an EBITDA margin of 15.7%, showing improvement in profitability.

Store Expansion and Brand Performance

During the quarter, Devyani International added 95 net new stores:

• 54 new KFC outlets in India
• 18 Pizza Hut stores
• 13 stores under Biryani by Kilo and Vaango
• 20 international stores across Thailand and Nepal

The total store count reached 2,279 outlets by the end of Q3 FY26. Importantly, Biryani by Kilo achieved brand-level EBITDA breakeven earlier than expected, marking a key milestone.

Turnaround Plan for Pizza Hut

The company has begun closing loss-making Pizza Hut stores and will open new outlets mainly to replace unprofitable ones.

This strategy aims to improve efficiency, reduce capital spending, and strengthen long-term profitability.

Positive Outlook and Leadership Changes

India operations grew 12.1% YoY, and January sales showed positive same-store growth across most brands, except Pizza Hut where losses are narrowing.

Looking ahead:

• Manish Dawar will become President and CEO from April 1, 2026.
• Current CEO Virag will retire on March 31, 2026, and continue as a Non-Executive Director.
• Anupam Kumar will take charge as Chief Financial Officer.

The company believes this leadership transition will support its next phase of expansion and diversification.

Read More: Union Budget 2026: Tax Increase Hits Indian Cigarette Companies; ITC, Godfrey Phillips in Focus!

About Devyani International

Devyani International is one of India’s largest quick service restaurant operators, managing over 2,000 stores across 280+ cities in India, Thailand, Nepal, and Nigeria.
It is the largest franchisee of Yum! Brands in India and Nepal and also operates Costa Coffee, Vaango, Biryani by Kilo, and other well-known brands.

Devyani International Share Price Movement

Devyani International share price (NSE: DEVYANI) was trading at ₹123.53, up ₹7.49 or 6.45% on February 4 at around 2:35 PM IST. During the day, the stock opened at ₹116.60, touched a high of ₹128.65, and fell to a low of ₹116.00. The stock currently does not have a reported P/E ratio or dividend payout.

Conclusion

Devyani International delivered steady revenue growth, expanded its store network, and improved margins in Q3 FY26. With Pizza Hut restructuring, breakeven in Biryani by Kilo, and new leadership ahead, the company appears positioned for the next stage of long-term growth.

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