Mumbai, Nov 6 (NationPress) - Devyani International Limited, known for its popular quick service restaurant (QSR) brands including KFC and Pizza Hut, has reported a loss of Rs 23.9 crore in Q2 FY26, marking a decline from a profit of Rs 2.2 crore in the preceding quarter (Q1 FY26).

On a year-over-year basis, the losses have increased significantly by 367 percent, compared to the loss of Rs 4.9 crore recorded in Q2 FY25, according to the company's filing with the stock exchange.

The company has pointed to the adverse impact on out-of-home consumption due to the overlapping festivals of Shraavana and Navaratri during this quarter.

Additionally, unseasonal rains, particularly in the eastern regions of the country during the critical second half of September, have further hindered potential gains.

Despite the setbacks, the company's consolidated revenues increased to Rs 1,377 crore, reflecting a 13 percent year-on-year growth. This revenue growth was primarily driven by the launch of 263 new outlets over the past year, bringing the total to 2,184 locations.

Revenue from KFC India reached Rs 572.3 crore, up 5.3 percent YoY.

The EBITDA margin fell to 14.1 percent during the second quarter, down from 16.3 percent in the same period last year, partly due to losses from the acquisition of Sky Gate Hospitality, which is the parent company of Biryani by Kilo.

Moreover, the company noted a decline in demand and intense competition from local eateries, while urban consumption is gradually starting to recover after a period of stagnation.

Earlier in April, the company had announced partnerships with three international brands - New York Fries, Tealive, and Sanook Kitchen - to enhance its overall portfolio.

Devyani International reported robust growth in revenue from Biryani By Kilo and Goila Butter Chicken from the Skygate portfolio after Dussehra. They also confirmed that the integration of Skygate with DIL is on schedule, aiming for a brand contribution break-even by March 2026.