(MENAFN- IANS) Mumbai, Nov 6 (IANS) Devyani International Limited, the operator of popular quick service restaurant (QSR) brands like KFC and Pizza Hut, on Thursday slipped into losses by Rs 23.9 crore in Q2 FY26 on the sequential basis, from Rs 2.2 crore profit in the previous quarter this fiscal (Q1 FY26).

On the year-on-year basis, the losses widened by a massive 367 per cent, from the loss of Rs 4.9 crore in the same quarter last fiscal (Q2 FY25), as per its stock exchange filing.

The company attributed the losses to out-of-home consumption getting impacted due to both Shraavana and Navaratri falling in the same quarter, according to the exchange filing on Thursday.

Further unseasonal rains – especially in eastern parts of the country during the crucial second half of September also weighed down on the gains.

The company's consolidated revenues grew to Rs. 1,377 crore, posting a 13 per cent YoY growth. The revenue surge was fuelled by the opening of 263 new outlets in the past year, bringing the total store count to 2,184 units.

The company posted Rs. 572.3 crore revenues from KFC India, up 5.3 per cent YoY.

The EBITDA margin fell to 14.1 per cent in the second quarter, down from 16.3 per cent a year earlier, due in part to losses from its acquisition of Sky Gate Hospitality, the parent company of Biryani by Kilo.

It also cited declining demand and strong competition from local restaurants as reasons for the downturn, noting that urban consumption is just starting to recover after a period of slow growth.

The company in April had announced tie-ups with three international brands -- New York Fries, Tealive, and Sanook Kitchen -- to strengthen its overall portfolio.

The company announced that it saw strong momentum in the business revenue from Biryani By Kilo and Goila Butter Chicken from Skygate portfolio post Dussehra. It added that integration of Skygate with DIL remains on track, and remain poised to achieve brand contribution break-even by March 2026.

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