India's KFC and Pizza Hut operator Devyani International Limited on Thursday hailed next-gen GST reforms calling it the "most important policy development for consumers and the retail industry." Praising the government's historic move to simplify and harmonize the GST framework to a 2-tier structure, the QSR operator sees minimal impact of GST on the QSR category.
"Q2 saw perhaps the most important policy development for consumers and the retail industry with the transition to GST 2.0 – a historic move to simplify and harmonize the GST framework to a 2-tier structure. While it’s still early to assess the results of this transition, the initial signs are encouraging," Ravi Jaipuria, Non-Executive Chairman at DIL said as the company declared its Q2 earnings on Thursday.
"The impact of the change has been very minimal on the QSR category and our business. We have already passed on the benefits of reduced input costs to our consumers," he said.
Jaipuria welcomed GST 2.0 as a "move to broaden the consumption story in India."
Devyani International Q2 earnings:
The largest franchisee of Yum Brands in India, Devyani International Ltd. reported a consolidated revenues of Rs. 1,377 cr with a 12.6% YoY growth. Out of this, the key QSR chains breakdown is as follows:
Devyani's KFC store recorded a 4.2% decline in same-store-sales-growth in Q2 FY26, as compared to -0.7% in Q1 FY26. The Pizza Hut outlets under DIL reported a 4.1% qoq decline in the last quarter.
"Out-of-home consumption was impacted due to both Shraavana and Navaratri falling in the same quarter, as well as unseasonal rains – especially in eastern parts of the country during the crucial second half of September," Jaipuria said.About its recent acquisition of Biryani By Kilo and Goila Butter Chicken from Skygate, the QSR giant is on track to achieve brand contribution break-even by March 2026.
"Q2 saw perhaps the most important policy development for consumers and the retail industry with the transition to GST 2.0 – a historic move to simplify and harmonize the GST framework to a 2-tier structure. While it’s still early to assess the results of this transition, the initial signs are encouraging," Ravi Jaipuria, Non-Executive Chairman at DIL said as the company declared its Q2 earnings on Thursday.
"The impact of the change has been very minimal on the QSR category and our business. We have already passed on the benefits of reduced input costs to our consumers," he said.
Jaipuria welcomed GST 2.0 as a "move to broaden the consumption story in India."
Devyani International Q2 earnings:
The largest franchisee of Yum Brands in India, Devyani International Ltd. reported a consolidated revenues of Rs. 1,377 cr with a 12.6% YoY growth. Out of this, the key QSR chains breakdown is as follows:
- KFC India: Rs. 5,723 million, up 5.3% YoY
- Pizza Hut India: Rs. 1,860 million, up 0.6% YoY
- International business: Rs. 4,495 million, up 14.0% YoY
Devyani's KFC store recorded a 4.2% decline in same-store-sales-growth in Q2 FY26, as compared to -0.7% in Q1 FY26. The Pizza Hut outlets under DIL reported a 4.1% qoq decline in the last quarter.
"Out-of-home consumption was impacted due to both Shraavana and Navaratri falling in the same quarter, as well as unseasonal rains – especially in eastern parts of the country during the crucial second half of September," Jaipuria said.About its recent acquisition of Biryani By Kilo and Goila Butter Chicken from Skygate, the QSR giant is on track to achieve brand contribution break-even by March 2026.
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