Devyani International Ltd (DIL), the largest operator of KFC and Pizza Hut outlets in India, has lauded the government’s rollout of next-generation GST reforms, calling it one of the most significant policy moves for consumers and the retail industry.
“The transition to GST 2.0 marks a historic step towards simplifying and harmonizing the taxation framework into a two-tier structure,” said Ravi Jaipuria, Non-Executive Chairman of Devyani International, while announcing the company’s Q2 FY26 results. “While it’s still early to assess the full impact, initial signs are encouraging. The change has had minimal effect on the QSR category, and we have already passed on the benefits of reduced input costs to our consumers.”
Jaipuria further noted that the new tax regime would “broaden India’s consumption story” by driving affordability and efficiency across retail formats.
For the second quarter, Devyani International reported consolidated revenue of ₹1,377 crore, reflecting a 12.6% year-on-year growth. The brand-wise performance was led by:
KFC India: ₹572.3 crore, up 5.3% YoY
Pizza Hut India: ₹186 crore, up 0.6% YoY
International operations: ₹449.5 crore, up 14% YoY
However, the company witnessed a dip in same-store sales, with KFC recording a 4.2% decline and Pizza Hut slipping 4.1% quarter-on-quarter. Jaipuria attributed this to subdued out-of-home consumption during Shraavana and Navaratri, along with unseasonal rains in eastern India during late September.
On its expansion plans, Devyani reaffirmed progress on integrating Biryani By Kilo and Goila Butter Chicken, brands it recently acquired from Skygate Hospitality. The company expects both to achieve brand-level break-even by March 2026.
Jaipuria concluded that the simplified GST regime, coupled with Devyani’s multi-brand strategy, will strengthen the QSR player’s position in India’s fast-evolving consumption landscape.