“Consumer demand remained relatively subdued through much of the first three quarters as discretionary spending moderated,” chairman Ravi Jaipuria said in the company’s latest annual report. Rather than “pursuing growth at any cost,” the company focused on protecting unit economics, improving operational efficiency and selectively investing in technology and customer engagement.
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He said the fourth quarter saw “early signs of recovery,” with improving consumption trends, value-led initiatives at KFC and product innovation helping lift average daily sales and stabilise same-store sales. “While demand recovery is still evolving, these early trends reinforce our confidence in the long-term opportunity for organised food services in India.”
The comments come after a challenging year for India’s quick-service restaurant industry, where operators leaned on value meals and promotional offers to revive traffic amid weak urban consumption.
Devyani’s revenue from operations rose 13.3% during FY26 and ended the year with 2,256 restaurants globally, adding 217 stores including 193 in India, taking its domestic network to 1,857 outlets.
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Jaipuria said the company is broadening its business beyond its traditional KFC and Pizza Hut operations by investing in homegrown brands such as Vaango, Biryani By Kilo and Goila Butter Chicken, while also expanding Costa Coffee, New York Fries and Sanook Kitchen.