Event Type: The document is a transcript of the Q2 & H1 FY27 Earnings Conference Call held post declaration of Unaudited Financial Results.

Date and Time: The conference call was held on November 2, 2026. The specific time was not mentioned in the transcript.

Purpose: The purpose was to discuss the company's quarterly results and provide a business and financial update for Q2 and H1 FY27.

Earnings Announcement Timing: The call was held after the earnings announcement, specifically "post declaration of Unaudited Financial Results."

Management Participants:

  • Mr. Raj Gandhi, Non-Executive Director
  • Mr. Manish Dawar, President and Group CEO (delivered Chairman's remarks)
  • Mr. Anupam Kumar, CFO
  • Mr. Anoop Poojari from CDR India (Moderator)

Availability of Materials: The transcript was filed with the exchanges and is being uploaded on the company's website at www.dil-rjcorp.com. No mention was made of a presentation deck or recording being available.

UPSI Statement: The document did not contain any specific statement indicating that no unpublished price sensitive information (UPSI) would be shared.

Financial Period Discussed: The call discussed results for the Quarter and Half Year ended September 30, 2026 (Q2 FY27).

Key Financial Highlights from Transcript:

  • Consolidated Q2 revenue grew 10.4% YoY to INR 1,519 crore.
  • Operating EBITDA (pre-Ind AS basis) was INR 125 crore, up 34% YoY.
  • Operating EBITDA margin improved to 8.2% from 6.8% in the previous year.
  • Profit Before Tax (PBT) for Q2 was INR 5.7 crore versus a loss last year.
  • H1 PBT was INR 29 crore versus a loss of INR 24 crore in the previous year.
  • Gross margin was 68.5%, an improvement of 70 basis points YoY.
  • Consolidated brand contribution margin expanded to 13% with brand contribution of INR 198 crore, up 23% YoY.

Brand Performance Details:

  • KFC: SSSG of 4.4%, revenue of INR 642 crore (up 12.3% YoY), gross margin of 68.2%, brand contribution margin of 13.9%. Added 50 net new stores (total 844).
  • Pizza Hut: SSSG of -1.4% (sequentially better), revenue of INR 184 crore (nearly flat YoY), gross margin of 76.7%, brand contribution margin of -1.8% (loss of INR 3.3 crore). Added 6 net new stores (total 632).
  • Own Brands (Vaango & BBK): Combined revenue of INR 95 crore (up 11% YoY), gross margin of 65.4% (vs 62.6% last year), brand contribution of INR 9 crore (9.4% margin). BBK SSSG 8.1%, Vaango SSSG 6.9%. Total 225 stores.
  • Franchise Brands (Costa): Revenue growth of 7% YoY, SSSG of 9.9%, gross margin of 74.2%, brand contribution margin of 15.5%. Total 202 stores.
  • International Business: Quarterly revenues of INR 509 crore, brand contribution margin of 17.9% (INR 91 crore).

Store Expansion: The company added 70 net new stores in Q2 (68 in India), taking the total store footprint to 1,923 stores in India and 2,325 stores globally. The company reaffirmed its full-year guidance of 200-220 net new store additions.

Strategic Updates & Forward-Looking Statements:

  • The company is focusing on value propositions (INR 99/149 meal combos at KFC) to drive traffic in the current macroeconomic environment.
  • Mentioned facing inflation in raw materials (chicken, edible oils, dairy) and wages, with only a 1-2% price hike taken YTD.
  • Received CCI approval for the proposed merger with Sapphire Foods. Awaiting no objection from SEBI before proceeding with NCLT application. Expects to close the merger process by the end of FY27.
  • The Sky Gate merger is also progressing and expecting NCLT approval shortly.

Additional Notes Section

  • The document was an attachment (transcript) to a regulatory filing submitted to the NSE and BSE.
  • The transcript contained detailed financial data and performance metrics for Q2 and H1 FY27.
  • The Chairman, Mr. Ravi Jaipuria, did not attend the call due to personal reasons, and his remarks were delivered by Mr. Manish Dawar.