India business grows 12.1 per cent while margins improve sequentially; Pizza Hut turnaround underway
Devyani International reported consolidated revenue of Rs 1,441 crore in Q3FY26, up 11.3 per cent year-on-year, while revenue from India operations grew 12.1 per cent, the company said in its quarterly results. Despite the rise in sales, the quick service restaurant operator posted a net loss of Rs 11.1 crore during the quarter.
However, the company remained in the red during the quarter. Devyani International posted a net loss of Rs 11.1 crore in Q3FY26, narrowing from a loss of Rs 23.9 crore in Q2FY26 but widening compared to a loss of Rs 7.6 crore in Q3FY25. Earnings before interest, taxes, depreciation and amortisation (Ebitda) margin improved sequentially to 15.7 per cent from 14.1 per cent in the previous quarter, although it declined from 16.9 per cent a year earlier.
Management said it has initiated steps to turn around the Pizza Hut business by rationalising loss-making outlets as part of a broader restructuring exercise.
“The company has seen positive same-store sales growth (SSSG) across all its brands in the month of January, except Pizza Hut where the losses are being contained. The management is expecting that if this momentum continues through the quarter, this will lay a strong foundation for future growth,” it said.
Devyani International is among India’s largest quick service restaurant (QSR) operators, with 2,279 stores as of the end of Q3FY26 across more than 280 cities in India, Thailand, Nigeria and Nepal. The company is the largest franchisee of Yum! Brands in India and Nepal. It also holds exclusive franchise rights in India for several international brands including Costa Coffee, Tea Live, New York Fries and Sanook Kitchen.
