Devyani International Limited has received an ESG rating of 64 from NSE Sustainability Ratings Analytics Limited, the company announced in a regulatory filing on December 11, 2025. The rating was assigned voluntarily and reflects the company's environmental, social, and governance practices.

Regulatory Disclosure Details

The disclosure was made pursuant to Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, in compliance with the SEBI Master Circular No. SEBI/HO/CFD/PoD2/CIR/P/0155 dated November 11, 2024. The company communicated this development to both the National Stock Exchange of India Limited and BSE Limited.

Stakeholder Communication

Devyani International has made the ESG rating information accessible to stakeholders by uploading the details on the company's official website at www.dil-rjcorp.com . This ensures transparency and allows investors and other stakeholders to review the company's sustainability performance metrics.

The disclosure was signed by Pankaj Virmani, who serves as both Chief Sustainability Officer and Company Secretary, highlighting the company's integrated approach to sustainability governance and corporate compliance.

Devyani International Limited , a major player in the Quick Service Restaurant (QSR) sector, has reported a 13% year-on-year growth in consolidated revenue for Q2 FY26, reaching INR 1,377.00 crore. The company faced headwinds from unseasonable rains and the timing of religious festivals but continued its expansion strategy across brands.

Key Financial Highlights

Brand Performance

KFC India

• Revenue: INR 572.00 crore (+5.30% YoY)
• Average Daily Sales: INR 89,000.00
• Brand Contribution Margin: 14.10%
• Added 30 new stores, reaching a total of 734 stores

Pizza Hut India

• Revenue: INR 186.00 crore
• Same-Store Sales Growth: -4.00%
• Average Daily Sales: INR 33,000.00
• Opened 3 new stores, totaling 621 stores

International Business

• Revenue: INR 450.00 crore (+14.00% YoY)
• Brand Contribution: INR 75.00 crore (16.70% margin)

Expansion and New Initiatives

Devyani International continued its expansion strategy across various brands:

• KFC: Added 30 new stores in India
• Pizza Hut: Opened 3 new stores
• Tealive: Test launched with 6 new outlets
• Biryani By Kilo: Expanded to airport locations in Mumbai and Pune

The company remains on track to achieve brand contribution breakeven for its SkyGate acquisition by March 2026.

Market Challenges and Strategy

Manish Dawar, CFO and Whole-Time Director, highlighted the challenges faced during the quarter:

"We had this peculiar situation whereby Dussehra and the Navaratri came in the same quarter, which was unlike the previous year. And therefore, we saw a kind of prolonged dip in the SSSG (Same-Store Sales Growth)."

The company increased promotional activities to support sales during this period, particularly focusing on value offerings. Dawar noted, "We are working on innovation in that segment as well. You would have seen the promotions around the whole Epic Savers campaign where we are promoting the value layer."

Outlook

While the demand environment remains challenging, Devyani International is optimistic about the upcoming quarter, typically a strong period for the QSR industry. The company is balancing its efforts between maintaining dine-in relevance and catering to the growing delivery segment.

Dawar commented on future prospects, stating, "We've seen some difference post Dussehra. Let's see whether it sustains the momentum or not. But overall, let's say, if you were to ask me what is the one-word conclusion, it remains muted."

As Devyani International navigates through these market challenges, it continues to focus on store expansion, menu innovation, and operational efficiency to drive growth in the competitive QSR landscape.