Jubilant Foodworks Limited — Q2 FY26 earnings call

Call held 13 Nov 2025

Management summary

Jubilant FoodWorks reported a strong Q2 FY26 with consolidated revenue growing 19.7% to ₹23.4 billion and PAT up 53.7%. The company expanded its network by 93 stores, bringing the total to nearly 3,500. India Domino's achieved a 9.1% LFL growth, while the Turkey business also showed strong performance with a 10.4% PAT margin. Management highlighted continued focus on product innovation, digital adoption, and cost control, despite some inflationary pressures on key ingredients.

Highlights

  • Consolidated revenue from operations increased by 19.7% YoY to ₹23.4 billion.

  • Consolidated PAT from continued operations grew 53.7% YoY.

  • Added 93 stores during Q2 across brands and markets, operating close to 3,500 stores.

  • Domino's India delivered 9.1% like-for-like growth and expanded to 500 cities.

  • Turkey business delivered robust pipeline growth and a healthy PAT margin of 10.4%.

Concerns

  • Inflationary pressure on cheese prices due to rising milk prices post Maharashtra election.

  • Delivery channel bill size saw a dip of 200 bps due to new customer acquisition at lower price points.

Key financials

  1. Consolidated Revenue 23,400 Mn +19.7%YoY
  2. Consolidated EBITDA 4,800 Mn +19.5%YoY
  3. Consolidated PAT — +53.7%YoY
  4. India Business Revenue 17,000 Mn +15.8%YoY
  5. India Domino's LFL Growth 9.1%
  6. Turkey Business Revenue 5,900 Mn
  7. Turkey Business PAT Margin 10.4%
  8. Total Stores 3,500 stores
  9. Stores Added Q2 93 stores

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

  • India Business
    17,000 Mn Revenue15.8% YoY Growth9.1% Domino's LFL Growth16.5% Domino's Delivery LFL Growth81 stores Domino's New Stores Q28 stores Popeyes New Stores Q2
  • Turkey Business
    5,900 Mn Revenue10.4% PAT Margin5.6% Domino's LFL Growth (adjusted for inflation)5 stores COFFY New Stores Q2172 cafes COFFY Total Cafes
  • Sri Lanka
    81% LFL Growth

Capital allocation

high confidence
  • Capex Capex disclosed
    • H1 investments in fixed assets (store, tech, delivery network bikes) ₹4,150 Mn
    So, we do not break that up, Gautam. And I think where we have said in the past also is a large part of our investment base is now, of course, shifting to store investment and it is very little. So, it is between store and tech investments where now a majority of our investments are now going into. ... So, we do as growth increases and LFL comes in, you do realize a large component, given we have our own delivery network, goes into bikes. So, a large part to support the growth has also gone behind putting in more bikes on the ground. So, that is also a large part of our investment. It is over and above store investment. Yes. So, those are three big components. Commissary is very, very minimal.
  • Debt Debt disclosed
    Post IndAS, interest costs declined by 23.5% year-on-year, largely due to efficient refinancing of the acquisition debt in Turkey.

Guidance & targets

Revenue

  • India Domino's YoY Revenue Growth Revenue · year-on-year · High confidence closer to 15%
    Yes, great question Vivek. It is how we build our internal plan. So, we want the India Domino's business to grow closer to 15% year-on-year. That is what internally we target.

    — Sameer Khetarpal

  • Ad Monetization Revenue Contribution Revenue · Medium confidence at least 50 basis points of the revenue
    My ambition would be to get at least 50 basis points of the revenue to flow in from this, but it will take time, right? It is not going to happen.

    — Sameer Khetarpal

Volume

  • India Domino's LFL Growth Volume · year-on-year · High confidence roughly 5% to 7%
    Now, roughly 5% to 7% should come from like-for-like growth and we should increase 7% to 10% on the store expansion.

    — Sameer Khetarpal

Store Count

  • India Domino's Store Expansion Growth Store Count · year-on-year · High confidence 7% to 10%
    Now, roughly 5% to 7% should come from like-for-like growth and we should increase 7% to 10% on the store expansion.

    — Sameer Khetarpal

  • Total Stores Added Store Count · in the three years · High confidence about 900 stores
    Yes. I think it is less about the guidance, right? So, we are committed to about 900 stores, like we said, in the three years, right? So, that target does not change.

    — Sameer Khetarpal

Profitability

  • EBITDA Margin Improvement Profitability · Over three years · High confidence 200 basis point
    our guidance that we have given or that what Suman gave during Investor Day that we should improve 200 basis point, right, Suman? ... Over three years.

    — Suman Hegde

What to watch in Q3 FY26

India Domino's LFL Growth

next quarter
Current 9.1%
Target 5-7% range

Why it matters

To verify if the LFL growth remains within management's stated target range for sustainable growth.

So, we want the India Domino's business to grow closer to 15% year-on-year. That is what internally we target. Now, roughly 5% to 7% should come from like-for-like growth and we should increase 7% to 10% on the store expansion.

Risks & concerns

  • Inflationary pressure on cheese prices

    medium

    Milk prices post Maharashtra election have shot up, impacting cheese prices, which is being managed through selective price pass-through and cost control.

    Management acknowledged

  • Hyperinflation economy in Turkey

    medium

    Hyperinflation in Turkey leads to accounting adjustments, but the underlying business performance and EBITDA margins remain stable.

    Management acknowledged

  • Lower average ticket size in delivery channel

    low

    New customer acquisition in delivery often starts at lower price points, leading to a 200 bps dip in bill size, but repeat rates are stable, indicating effective customer acquisition.

    Management acknowledged

Q&A highlights

8 direct
LFL Growth Targets for India Domino's Direct
So, we want the India Domino's business to grow closer to 15% year-on-year. That is what internally we target. Now, roughly 5% to 7% should come from like-for-like growth and we should increase 7% to 10% on the store expansion.

Management provided specific numerical targets for overall growth, LFL, and store expansion for the India Domino's business.

Asked by Vivek M.

Dine-in Sales Recovery and Strategy Direct
The work on dine-in or in-store is very much underway. Like for example, the Rs. 99, the renowned value meal that we launched for dine-in between 11:00 AM and 3:00 PM is giving us the joy. We have expanded that to delivery at about Rs. 150 during lunch hours.

Management outlined specific initiatives to boost dine-in sales, which had a low base, indicating a strategic focus on this channel.

Asked by Vivek M.

Impact of GST Benefits on Margins and Pricing Direct
I think our internal estimates, while see we were at a 5% regime and we continue to be at a 5% regime with no input tax credit. Having said that, we are thankful to the government to bring down the GST on some of the input like the ingredients like cheese and sauces that we get from 12% to 5%. And therefore, the weightage of that in our mix is about 50 basis points in terms of margins.

Management quantified the margin benefit from GST reduction on inputs (50 bps) and explained the strategy of selectively passing benefits to consumers to drive consumption.

Asked by Vivek M.

October Growth Trajectory and Q3 Outlook Direct
So, Jay, like I said, October has been a very good month for us, it continued, it was ahead of our plans. ... At the moment, I remain very confident looking at how October has gone. So, I am not giving you a particular number saying yes or no to it, but we are ahead of our plan, right?

Management provided a positive update on October's performance, indicating strong momentum for Q3 despite a high base from the previous year.

Asked by Jay Doshi

Drivers for 200 bps EBITDA Margin Improvement Direct
The breakup was very simple, we have to recover 100 basis points from gross margins through mix, through other procurement initiatives, so that is one. If we grow 5% to 7% consistently, right, the leverage is coming in, at least in rental lines, other lines will also come.

Management detailed the components of the targeted 200 bps margin improvement, including gross margin recovery, operating leverage, and cost control.

Asked by Percy Panthaki

Q2 Margin Performance and Cost Reduction Initiatives Direct
Yes, I think there are four initiatives over there on the operating cost cycle. So, one is our supply chain cost, right? So, we are driving massive automation, and the higher sales per store is getting leverage over there. ... Third is, I have been the most hated employee in the company from a G&A standpoint, right, so I track it like a hawk, and in fact, we are beginning to get G&A productivity and G&A leverage.

Management explained the reasons for Q2 margin performance (inflation on cheese) and outlined specific initiatives for operating cost reduction, including supply chain automation and G&A productivity.

Asked by Nihal Mahesh Jham

Delivery Channel Bill Size Decline Direct
I think the short answer over there is as delivery grows, it is becoming an acquisition channel for new customers. And new customers typically start at a lower price point and we have grown very handsomely in our new customer acquisition rate. ... So, therefore, from that perspective, new customers come in at a lower average ticket size, but we are seeing no dilution in the repeat rates.

Management clarified that the dip in delivery bill size is due to new customer acquisition at lower price points, but emphasized stable repeat rates, indicating a healthy acquisition strategy.

Asked by Devanshu Bansal

Strategy for New City Store Additions Direct
What we obsess about is, I think, three things. Number one, there has to be a customer base. So, we map the household, household incomes, number of things on our app. So, there are several customers who are in these cities. And they have downloaded the app. ... And third thing is we obsess about the ROIC. Typically, these cities have much higher penetration of dine-in, because we are the first organized QSR to enter these cities.

Management detailed the criteria for new city expansion, focusing on customer base, app penetration, and Return on Invested Capital (ROIC), indicating a data-driven approach.

Asked by Sabyasachi Mukerji

3 min read 7 chapters

Detailed narrative

Strong Consolidated Performance and Profitability

Jubilant FoodWorks reported a robust Q2 FY26, with consolidated revenue from operations increasing by 19.7% year-on-year to ₹23.4 billion. Consolidated EBITDA grew by 19.5% to ₹4.8 billion. Notably, consolidated PAT from continued operations saw a significant jump of 53.7% year-on-year, validating strategic capital deployment and execution focus. The company aims for a 200 basis point EBITDA margin improvement over three years from FY24 levels.

India Business Momentum and Store Expansion

The India business delivered industry-leading revenue growth of 15.8% to almost ₹17 billion, driven by strong order volume growth of 15% year-on-year. Domino's India achieved a positive like-for-like (LFL) growth of 9.1%, marking seven consecutive quarters of positive LFL growth. The company expanded its network by adding 81 new Domino's stores in Q2, taking the total to 149 for H1 FY26 and extending service to 500 cities. Overall, 93 new stores were added across all brands and markets in Q2, bringing the total store count to nearly 3,500.

Turkey Business Outperformance and International Growth

The Turkey business continued its strong performance, exceeding plans with revenues of ₹5.9 billion and a healthy PAT margin of 10.4%. Domino's LFL growth in Turkey, adjusted for inflation, was 5.6%. The COFFY brand in Turkey is also ramping up, adding five new stores in Q2 to reach a total of 172 cafes. Sri Lanka and Bangladesh businesses also witnessed strong growth, with Sri Lanka reporting an 81% LFL growth.

Product Innovation and Digital Initiatives

Product innovation remains a key growth lever. Following successful launches like Big Big Pizza and Chicken Burst, Q2 saw the introduction of four cheese sourdough pizzas, which received exceptional customer feedback. Digitally, the company achieved a major milestone by launching an ad monetization platform on the Domino's app, attracting iconic brands and nearly 15 million monthly active users. App traffic grew 28%, and the loyalty member base rose to over 40 million.

Dine-in and Takeaway Performance

While delivery channel revenue grew over 20% and delivery LFL was 16.5%, the dine-in segment grew 14% in Q2, and takeaway declined by 19%. Management is actively working on initiatives to boost dine-in sales, including the ₹99 value meal for dine-in during lunch hours. The decline in takeaway is attributed to the attractiveness of 20-minute free delivery, which incentivizes customers to order for delivery rather than pick-up.

Cost Control and Margin Management

The India business saw sequential improvement in pre-IndAS EBITDA margins, driven by improved operating leverage and productivity gains. The team maintained tight cost control across the supply chain. The reduction in input GST from 12% to 5% on ingredients like cheese and sauces contributed approximately 50 basis points to margins, with benefits selectively passed on to consumers to drive consumption, especially during the festive period.

Capital Expenditure and Investment Focus

Total investments in fixed assets for H1 FY26 amounted to ₹4.15 billion. The majority of this investment is shifting towards store and tech investments, with minimal commissary investments. A significant portion of capex also goes into expanding the delivery network by adding more bikes to support growth. The company is committed to opening approximately 900 stores over the next three years, with a focus on customer base, app penetration, and ROIC for new city entries.

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