Business Overview:
- Operates KFC and Pizza Hut restaurants in India as a franchisee of Yum! Brands.
- Focus remains on protecting franchise agreements, unaffected by Yum! Brands’ strategic review of Pizza Hut globally.
Financial Performance (Quarter ended September 2025):
| Metric | Q2 FY26 | Q2 FY25 / Prior Year |
|---|---|---|
| Net Profit / Loss | -₹219 million | +₹0.17 million |
| Revenue from Operations | ₹13.77 billion | Not specified, up 12.6% YoY |
| EBITDA Margin | 14.1% | 16.3% |
| Store Count | 2,184 units | 1,921 units (added 263 stores) |
Same-Store Sales Performance:
- KFC: -4.2%
- Pizza Hut: -4.1%
- Sales growth remains muted due to competitive pressures and reduced promotional intensity.
Operational Notes:
- Discussions ongoing with Yum! Brands to slow Pizza Hut expansion in India.
- GST cuts had minimal impact on QSR segment.
- Pizza Hut remains particularly challenged, mirroring peer Sapphire Foods’ performance.
Takeaway:
Despite revenue growth from new stores, same-store sales remain weak, leading to a net loss. KFC outperforms Pizza Hut slightly, but overall margin pressures persist.