Jubilant Foodworks Limited — Q1 FY26 earnings call

Call held 13 Aug 2025

Management summary

Jubilant FoodWorks delivered a strong Q1 FY26, with consolidated revenue up 17% to INR 2,260 crores and Domino's India achieving 11.6% LFL growth. Profitability also saw significant improvement, with consolidated PAT growing 59.8% and pre-Ind AS EBITDA up 18.2%. The company continued its store expansion, adding 71 net new stores, and saw strong digital engagement metrics. While gross margins were impacted by strategic value-led initiatives, management remains confident in future margin improvement and growth.

Highlights

  • Consolidated revenue grew 17% year-on-year to INR 2,260 crores.

  • Domino's India delivered an impressive 11.6% like-for-like growth and 17.3% order growth.

  • Pre-Ind AS EBITDA grew by 18.2% to INR 292 crores with margins at 12.9%.

  • Consolidated PAT grew by 59.8% year-on-year.

  • Added 71 net new stores, expanding the total network to 3,387 stores across countries.

Concerns

  • Gross margin dipped due to a deliberate value-led pricing mix shifts, extended IPL season, and success of Big Big Pizza.

  • PAT growth over a 3-5 year period has been muted, with a double-digit decline in profit over 3 years.

  • Popeyes' slower growth in store additions during the quarter was noted as an aberration.

Key financials

  1. Consolidated Revenue ₹2,260 Cr +17%YoY
  2. Domino's India LFL Growth 11.6%
  3. Domino's India Order Growth 17.3%
  4. Pre-Ind AS EBITDA ₹292 Cr +18.2%YoY
  5. Pre-Ind AS EBITDA Margin 12.9%
  6. Consolidated PAT Growth 59.8%
  7. Net New Stores Added 71 stores
  8. Total Network Stores 3,387 stores
  9. Monthly Active Users 15 Mn +21.5%YoY
  10. App Installs 12.3 Mn +19.4%YoY
  11. Loyalty Members 37 Mn +48.6%YoY
  12. Delivery LFL Growth 20.1%
  13. Mature Store ADS ₹85,396
  14. Delivery Channel Growth 24.6%
  15. Dine-in Growth 2.5%
  16. Interest Cost Decline 17.6%

What they filed

Q1 FY27: revenue up 13.7%, net profit up 6.4% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue1,955 2,151 2,095 2,261 2,340 +20%2,429 +13%2,499 +19%2,570 +14%
EBITDA396 402 392 438 476 +20%484 +20%485 +24%504 +15%
Net profit67 43 49 94 195 +191%73 +70%82 +67%100 +6%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Turkey Business
    ₹519 Cr Revenue9.4% PAT Margin

Capital allocation

medium confidence
  • Capex Capex disclosed
    Over the last 3 years on a stand-alone basis, I think you've spent on an annual basis, INR700 crores to INR800 crores per annum. So I'm just wondering if the heavy commissary capex is behind us and this absolute number on an annual basis could probably moderate. So I think that was what I was trying to gauge. Yes. It will moderate to some extent. But like I said, it won't be a material moderation because I'm just recalibrating it from supply chain commissaries to store.
  • Debt Debt disclosed
    On post-Ind AS basis, interest cost declined 17.6% year-on-year, thanks to better debt management and working capital efficiencies, further strengthening profitability and cash flows... By next quarter, we will start funding the cost of acquisition debt from Turkey.

Guidance & targets

Store Count

  • Total Store Franchise Store Count · long term · High confidence 5,000 stores
    We are here trying to build a 5,000 store franchise, right?

    — Sameer Khetarpal

  • New Stores in India Store Count · next 3 years · High confidence 1,000 stores
    plan is because we believe there's potential in the country to open the next 1,000 stores in the next 3 years, right, which will mean that there will be a higher amount of capex, which will now swing towards store openings.

    — Suman Hegde

Margin

  • Stand-alone Margin Improvement Margin · over 3-year period · Medium confidence at least 200 basis points
    I hope you looked at that number, right? And it should improve from here. We had given that in over a 3-year period, we should improve by at least 200 basis points on a stand-alone basis. So that guidance remains actually, to be very honest.

    — Sameer Khetarpal

  • Popeyes Margin Drag Reduction Margin · next 2 years · Medium confidence half the drag
    we are looking at over the next 2 years to at least half the drag that we are currently seeing on the overall JFL margins.

    — Suman Hegde

LFL Growth

  • Delivery Plus Takeaway LFL Growth LFL Growth · medium term · Medium confidence 2.5% to 6%
    So therefore, from neutralizing to plus 2.5%, 3% to 5%, 6% is what we are internally targeting, right?

    — Sameer Khetarpal

What to watch in Q2 FY26

Demand Environment Improvement

next quarter
Current Challenging
Target Improved quarter-on-quarter

Why it matters

Indicates potential for sustained LFL and revenue growth.

We expect the demand environment to improve quarter-on-quarter going forward.

Risks & concerns

  • Challenging demand environment

    medium

    The company delivered strong results despite a challenging demand environment in Q1 FY26.

    Management acknowledged

  • High inflation environment in Turkey

    medium

    The Turkey business team continues to navigate a high inflation environment with agility and resilience.

    Management acknowledged

  • Gross margin compression due to strategic initiatives

    medium

    Gross margin dipped due to deliberate value-led pricing mix shifts, extended IPL season, and success of Big Big Pizza.

    Management acknowledged

  • Muted PAT growth over 3-5 years

    medium

    Analyst noted that PAT has seen no growth, and a double-digit decline over a 3-year period, which management attributed to past unsustainable margins and strategic investments.

    Analyst acknowledged

  • Competitive intensity

    medium

    The competitive environment is much more intense than 3-4 years ago, requiring efficient pricing.

    Management acknowledged

Q&A highlights

5 direct, 1 evasive
Price hikes and growth strategy Evasive
We are here trying to build a 5,000 store franchise, right? I think this is the time where we penetrate more, we get the throughput per store and the leverage is coming in pre-Ind AS basis. It's very easy to take price hike at this stage, right? And I get like several proposals every day on my table. I am going in for growth...

Analyst questioned why price hikes aren't being taken despite stabilized SSG, and management emphasized long-term growth and penetration over immediate price increases.

Asked by Percy Panthaki

Impact of loyalty plan on customer behavior (AOV, frequency) Partial
Firstly, our own assets are growing the fastest, right? So loyalty has a role to play over there. Second is frequency has begun to move up, right? ... And third is the cohort, right? So like in the Cheesy Rewards loyalty program, after earning six pies, you get a free pizza. That cohort, four plus is seeing the fastest growth.

Analyst sought quantitative data on loyalty program impact, but management provided qualitative insights on its role in asset growth and frequency improvement without specific numbers.

Asked by Percy Panthaki

Sustainability of double-digit LFL growth after Q3 high base Partial
Bases do matter, right? -- but I think, again, I will request you to step back. At 3 quarters of these double-digit like-for-like growth, we will be expanding to the seams of the store in terms of operations, right? And that's what we are seeing, right? ... So it is not just a base effect.

Analyst questioned if LFL growth would moderate due to a higher base, and management attributed current growth to strategic initiatives beyond just base effects.

Asked by Percy Panthaki

Divergence between delivery and dine-in channel growth Direct
eating at your home from QSRs, whether through a carryout or through delivery is a worldwide trend, right? And aggregators have obviously accelerated it. COVID boosted it. ... our on-premise includes dine-in and takeaway, right? ... our dine-in trust me, has been one of the best in terms of the customer input has been the best in the last 3 or 4 years.

Analyst asked about the significant difference in growth, and management explained it as a global trend towards home consumption and clarified that overall dine-in/takeaway growth is strong.

Asked by Nihal Jham

Reasons for gross margin decline and PAT growth over 3-5 years Direct
gross margin dilution is a result of 3 things. One is Big Big Pizza, which was we knew dilutive exceeded our expectation by almost 2x. And the IPL... Second is we had launched chicken... Third is we want to grow lunch... On post-Ind AS basis, interest cost declined 17.6% year-on-year, thanks to better debt management and working capital efficiencies, further strengthening profitability and cash flows...

Analyst questioned the gross margin dip and muted PAT growth. Management attributed margin dip to strategic value initiatives and explained PAT improvement through cost discipline and capital management.

Asked by Aditya Soman

Impact of price increases on new product traction and elasticity Direct
consumers are very smart. They have more tools to do price benchmarking. Price increases have to be very calibrated, right, very thoughtful... In Big, Big Pizza, we did take price increase, but we saw massive elasticity against us. So we will roll back where we have to.

Analyst asked about the effect of rolling back introductory prices. Management acknowledged consumer price sensitivity and confirmed rolling back price increases where elasticity was high.

Asked by Jay Doshi

Consideration of platform fees Direct
I'm dead against that. I have seen this play out like almost 15 years of my life, right? You do get a bump in 1 quarter, 2 quarter, right? Our own app is growing for a reason, right, because we kept it simple. We've kept it unhidden price. It's very easy to do it, right? All of what you are suggesting, we can do it like tomorrow morning. It's hard to build long-term businesses that on customer trust... but we are not doing it.

Analyst asked if the company would consider platform fees. Management firmly rejected the idea, prioritizing customer trust and long-term business building over short-term gains.

Asked by Jay Doshi

Customer feedback on store data accuracy (Google/apps) Direct
I myself a Domino's customer and we do order it for various of our friends as well. I think most of the numbers which are listed online for your stores are either inaccurate or don't work. So if you can work with -- and it causes a lot of frustration when you're actually ordering in between again and you're waiting for a very long period of time. Yes. Firstly, my sincere apologies for the poor experience. We are on it. I think hopefully, Al will take over and then we'll not need any intervention. That's what we are building. But in the meantime, please do -- like if you can drop us an e-mail where it is, we'll correct it in like...

An analyst provided direct customer feedback about inaccurate store information online, which management acknowledged and committed to addressing.

Asked by Aditya Vikhram

3 min read 8 chapters

Detailed narrative

Q1 FY26 Performance Overview

Jubilant FoodWorks delivered a strong start to FY26, with consolidated revenue reaching INR 2,260 crores, marking a 17% year-on-year growth. Domino's India achieved an impressive 11.6% like-for-like growth and 17.3% order growth. The company added 71 net new stores during the quarter, expanding its total network to 3,387 stores across operating countries. Pre-Ind AS EBITDA grew by 18.2% to INR 292 crores, with margins at 12.9%, and consolidated PAT increased by 59.8% year-on-year.

Domino's India Growth Drivers

Domino's India's strong performance was driven by accelerated menu innovation, rapid growth of digital assets, and decisive progress towards 20-minute delivery. Delivery like-for-like growth stood at 20.1%, even with free delivery now in the base. Mature store Average Daily Sales (ADS) reached a new high of INR 85,396, reflecting strong throughput and operational excellence. The delivery channel grew by 24.6% year-on-year, while dine-in also increased by 2.5% after a long period.

Digital Ecosystem Expansion

The company's digital ecosystem continues to scale, with monthly active users reaching approximately 15 million, up 21.5% year-on-year. App installs increased by 19.4% to 12.3 million, and loyalty members grew to 37 million, an increase of 48.6%. These metrics highlight the company's ability to drive consumer engagement and repeat business through its technology platforms, contributing significantly to overall growth.

Popeyes Brand Momentum

Popeyes is gaining strong momentum, particularly in South Indian markets, exhibiting double-digit Same-Store Growth (SSG) and improving restaurant profitability quarter-on-quarter. The brand has expanded to West India, including three stores in Mumbai with two more under construction, and management expects the slower growth in store additions this quarter to be an aberration. The company aims to open 100-150 more Popeyes stores and reduce the brand's drag on overall JFL margins by half within the next two years.

Turkey Business Performance

The Turkey business delivered results as intended, proving PAT accretive, cash positive, and high on Return on Capital Employed (ROCE). It reported INR 519 crores in revenue with a 9.4% PAT margin. Despite moderated like-for-like growth due to CPI-led price lag, order volume grew healthily, and profitability improved through cost discipline and capital management. Coffy, the coffee brand in Turkey, now operates 167 cafes across 38 cities.

Profitability and Margin Discipline

The company maintained its focus on cost reduction and capital allocation, leading to pre-Ind AS EBITDA growth of 18.2% and margin expansion. While gross margin dipped due to strategic value-led pricing, the extended IPL season, and the success of Big Big Pizza, these actions drove superior growth and new customer acquisition. Management expects margins to improve, targeting at least 200 basis points expansion on a stand-alone basis over a three-year period, driven by operating leverage and tight cost discipline.

Store Expansion Strategy

Jubilant FoodWorks added 71 net new stores this quarter, bringing its total network to 3,387 stores. The company aims to build a 5,000-store franchise and plans to open 1,000 new stores in India over the next three years. The strategy involves calibrating store sizes based on location, with smaller stores (800-900 sq ft) for delivery-centric urban areas and larger stores (1,500 sq ft) for dine-in focused Tier 2/3 cities, ensuring optimal throughput and customer experience.

Pricing and Value Proposition

Management emphasized a calibrated approach to pricing, acknowledging consumer price sensitivity and the impact of price increases on elasticity, as seen with Big Big Pizza. They firmly rejected the idea of implementing platform fees, prioritizing customer trust and long-term business building. The focus remains on offering value-led propositions like the INR 99 lunch and Chicken Burst pizza, which have been well-received, to drive growth and customer acquisition.

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