Jubilant Foodworks Limited — Q3 FY26 earnings call

Call held 10 Feb 2026

Management summary

Jubilant FoodWorks reported a strong Q3 FY26 with consolidated revenue growth of 13.3% and EBITDA up 20%. The India business, led by Domino's and Popeyes, showed robust performance with positive LFL growth and significant margin expansion driven by calibrated price increases, new product launches, and productivity efficiencies. International operations, particularly Turkey, also contributed positively, generating cash flows to service acquisition debt. The company continues to focus on technology, store expansion, and improving unit economics across its brands.

Highlights

  • Consolidated revenue of ₹2440 crores, up 13.3% YoY.

  • Consolidated EBITDA up 20% YoY, with margin expanding 110 bps.

  • Domino's India achieved 5% LFL growth for the eighth consecutive quarter on a strong base of 12.5% LFL growth.

  • Popeyes saw impressive double-digit LFL growth, indicating strong brand acceptance and high customer repeats.

  • Turkey business continued positive results, generating steady cash flows and paying 100% of dividends to service JFL's acquisition-debt obligations.

  • Consolidated PAT from continuing operations before exceptional items grew 94% YoY.

  • India gross margin expanded 52 bps sequentially to 74.9%.

Concerns

  • Potential 10-15 bps impact on overall cost line from Labour Code implementation.

  • Dine-in and takeaway channels require significant intervention to improve performance.

Key financials

2 periods

Headline

  • Consolidated Revenue
    ₹2,440 Cr
    YoY +13.3%
  • Consolidated EBITDA Growth
    20%
  • Consolidated EBITDA Margin Expansion
    110 bps
  • Consolidated PAT Growth (pre-exceptional)
    94%
  • India Revenue
    ₹1,800 Cr
    YoY +11.8%
  • Domino's India LFL Growth
    5%
  • India Gross Margin
    74.9%
  • India Reported EBITDA Margin
    20.5%
  • Total Stores
    3,600 stores

Q3

  • Total Store Additions
    114 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

SegmentRevenue GrowthStore Additions (Q3)
India11.8%—
Domino's India10.7%75 stores
Popeyes—5 stores
Turkeydouble-digit yoy33 stores
Sri Lanka & Bangladesh——

Capital allocation

high confidence
  • Capex ₹700 Cr
    • Store expansion (1,000 stores in next 3 years)
    • Technology investments
    Our overall capex spend in the last couple of years have been in the range of anywhere between Rs. 700 crores to Rs. 850 crores. Yes, the supply chain capex has peaked, but we do not expect a significant movement downwards on the capex bill because we are, of course, recalibrating. We've called out saying we want to open 1,000 stores in the next 3 years, right, which mean that the store capex will kick in.
  • Debt Debt disclosed
    So the debt outstanding, the debt we took on account of the acquisition of about EUR110 million in our Netherlands entity, Ashish. And that, of course, the repayment schedule has not come up. We will look at what we do with that repayment, most likely, of course, the way Turkey is generating cash flow, we will look at funding some of that also from the Turkey cash flows. Having said that, and hence, right now, the obligation on debt is only with respect to the interest, 100% of the interest obligations are being paid by the Turkey business now since the last 3 quarters.

Guidance & targets

Volume

  • Domino's LFL Growth Volume · long-term · High confidence 5% to 7%
    Domino's should grow at 5% to 7% like-for-like growth.

    — Sameer Khetarpal

Revenue

  • Standalone Top Line Growth Revenue · long-term · High confidence around 15%
    Overall top line should grow for standalone around 15%

    — Sameer Khetarpal

  • Popeyes Contribution to Growth Revenue · near term · Medium confidence 1% to 1.5%
    I think Popeyes, Amit, should add like 1%, 1.5% to growth, right?

    — Sameer Khetarpal

  • Ad Monetization on App Revenue · short-term · Medium confidence 1% of revenues
    So at least my own take is at the right time, I'm not saying it short-term, we should get about 1% of our revenues on that channel. We should be able to monetize to that extent.

    — Sameer Khetarpal

  • Ad Monetization on App (absolute) Revenue · in fullness of time · Low confidence 3 digit crore number
    And in fullness of time, it can get to 3 digit or close to that.

    — Sameer Khetarpal

Margin

  • Standalone Pre-Ind AS Margin Margin · long-term · High confidence closer to 15%
    and we should get closer to 15% pre- Ind AS margin, right?

    — Sameer Khetarpal

  • Company EBITDA Margin Improvement Margin · above FY '24 margins · High confidence 200 bps
    I think our guidance has been consistent saying that above FY '24 margins, we want to improve by about 200 bps at an EBITDA level as a company.

    — Suman Hegde

Capacity

  • Total Store Network Capacity · long-term · High confidence 5,000-plus stores
    we are building a 5,000-store network business

    — Sameer Khetarpal

  • Store Expansion Capacity · next 3 years · High confidence 1,000 stores
    we want to open 1,000 stores in the next 3 years

    — Suman Hegde

Profitability

  • Labour Code Impact on Cost Line Profitability · after April · Medium confidence 10 to 15 bps
    But maybe about 10 to 15 bps is the impact that we see at an overall level at an outer limit

    — Suman Hegde

Disclosure

  • Popeyes Detailed Financial Disclosure Disclosure · Q1 FY27 · High confidence at 100 stores
    Let us just get to 100 stores, we'll disclose everything... It may happen by Q1. That's where we should start reporting the numbers.

    — Sameer Khetarpal

Business Size

  • Popeyes Business Size Business Size · medium term · Medium confidence 250 store INR1,000 crores business
    And I can only see that this to be a 250 store INR1,000 crores business in medium term and with very high profitability.

    — Sameer Khetarpal

What to watch in Q4 FY26

Popeyes detailed financial disclosure

Q1 FY27 (by 100 stores)
Current Not yet disclosed, strong double-digit LFL growth, improved ADSs and gross margins.
Target Disclosure of numbers for Popeyes (ADS, SSG, revenues, margins).

Why it matters

Will provide transparency on the unit economics and profitability of Popeyes, a key growth vector.

And in about 100 stores, we will start disclosing the numbers to all of you. And then we can scale faster from there... It may happen by Q1. That's where we should start reporting the numbers.

Risks & concerns

  • Labour Code Implementation

    medium

    Potential 10-15 bps impact on overall cost line due to new Labour Code.

    Management acknowledged

  • Dine-in/Takeaway Performance

    medium

    Dine-in and takeaway channels are not growing as fast as delivery and require strategic intervention.

    Management acknowledged

Q&A highlights

7 direct
LFL Growth Outlook & Margin Expansion Direct
Domino's should grow at 5% to 7% like-for-like growth. Overall top line should grow for standalone around 15%, and we should get closer to 15% pre- Ind AS margin, right?

Clarifies management's long-term growth and margin targets for the core Domino's business and standalone entity, addressing analyst concerns about LFL deceleration.

Asked by Vivek M.

Operating Leverage & Labour Code Impact Direct
From a Labour Code impact perspective, we have taken, of course, the onetime exception. Going forward, yes, there will be some impact that will come into the cost line. We anticipate as of now, while there's no definitiveness on it because everybody is looking at restructuring their wages and what will be the definitions which are actually rolled out when the implementation happens in April. But maybe about 10 to 15 bps is the impact that we see at an overall level at an outer limit, but we, of course, continue to look at. So nothing material that I want to call out.

Asked by Nihal Mahesh Jham

Competing with other food categories and market share Direct
India is a $60 billion food services market. So our competition is bhatura chana, dosa, idli, biryani, that is what India consumes. And the frequency of pizza is 3 in a year, and burger will be probably the same. So the idea is not to bring burger from 3 to 2 and pizza from 3 to 4. But the idea is to, out of 200 occasions that Indian is consuming Indian food, get 1 additional share of pizza.

Asked by Nihal Mahesh Jham

Capex Outlook and Supply Chain Optimization Direct
Our overall capex spend in the last couple of years have been in the range of anywhere between Rs. 700 crores to Rs. 850 crores. Yes, the supply chain capex has peaked, but we do not expect a significant movement downwards on the capex bill because we are, of course, recalibrating. We've called out saying we want to open 1,000 stores in the next 3 years, right, which mean that the store capex will kick in.

Asked by Nihal Mahesh Jham

App-based Delivery vs. Aggregators & Ad Monetization Direct
So at least my own take is at the right time, I'm not saying it short-term, we should get about 1% of our revenues on that channel. We should be able to monetize to that extent... in fullness of time, it can get to 3 digit or close to that [crore number].

Asked by Manish Poddar

Popeyes Growth, Margins, and Disclosure Direct
So firstly, the SSG for Popeyes has been positive double digits for 3 quarters in a row. And the last quarter being the highest ever... We've seen highest ever ADSs in the last quarter. Gross margins have improved. Restaurant profitability has improved. And we are well on track. And in about 100 stores, we will start disclosing the numbers to all of you. And then we can scale faster from there... It may happen by Q1. That's where we should start reporting the numbers.

Asked by Amit Sachdeva

Domino's Royalty Expense Direct
I think we are not expecting any upward or downward movement. We believe we have a very good rate. We have outstanding relationships. We're all good over there.

Asked by Jaykumar Doshi

3 min read 7 chapters

Detailed narrative

Q3 FY26 Performance Overview

Jubilant FoodWorks delivered a strong Q3 FY26, with consolidated revenue growing 13.3% year-on-year to ₹24.4 billion. Reported EBITDA saw a significant 20% increase, and the consolidated EBITDA margin expanded by 110 basis points. Profit After Tax (PAT) from continuing operations, before exceptional items, surged by 94% year-on-year, with the PAT margin expanding by 167 basis points. This performance was attributed to disciplined execution, strategic investments, and robust contributions from both domestic and international segments.

India Business Growth and Margin Expansion

The India business reported revenues of ₹18 billion, an 11.8% year-on-year growth. Domino's India achieved a 5% like-for-like (LFL) growth, building on a strong base of 12.5% LFL growth in the prior year, and overall revenue grew 10.7%. Gross margin in India expanded sequentially by 52 basis points to 74.9%, driven by calibrated price increases and new product launches like Sourdough Pizza and Cheese Lava Pull Apart. This led to India's reported EBITDA margin improving by 110 basis points year-on-year to 20.5%.

Popeyes' Strong Momentum and Future Outlook

Popeyes continued its strong performance with double-digit LFL growth for the second consecutive quarter, indicating strong brand acceptance. The brand expanded to 73 stores with 5 new additions in Q3. Management expressed increasing confidence in Popeyes becoming a powerful new growth vector, aiming for it to contribute 1-1.5% to overall growth. The company expects to disclose detailed financial numbers for Popeyes once it reaches 100 stores, anticipated by Q1 FY27, and envisions it becoming a 250-store, ₹1,000 crore business in the medium term.

International Business Performance

Jubilant FoodWorks' international operations also showed impressive results. The Turkey business continued to outperform plans, delivering double-digit year-on-year growth and maintaining strong PAT margins. Notably, the Turkey business is now generating steady cash flows sufficient to service 100% of the interest obligations on the EUR 110 million acquisition-related debt in the Netherlands entity. During the quarter, 33 new stores were added in Turkey, including 15 Domino's and 18 COFFY stores. Sri Lanka and Bangladesh also reported strong double-digit top-line growth and improved bottom-line performance.

Store Network Expansion and Technology Focus

The company added 114 stores across all brands and markets in Q3, bringing the total store count to nearly 3,600, with approximately 2,530 stores in India. Domino's India alone added 75 stores in Q3, contributing to 200 new stores in the first nine months of the fiscal year, marking its highest-ever expansion. Jubilant FoodWorks is committed to building a 5,000-plus store business and plans to open 1,000 stores in the next three years. Investments in technology and AI continue to yield tangible outcomes, with monthly transacting users on apps growing over 20% year-on-year.

Ad Monetization on Proprietary App

Jubilant FoodWorks has begun monetizing its proprietary app platform through post-order page advertising, collaborating with brands like Flipkart, Tata Neu, Amazon Fresh, and Apple. With 15-16 million monthly active users, the company aims to generate approximately 1% of its revenues from this channel in the short term, with aspirations to reach a three-digit crore figure in the fullness of time. This initiative leverages the company's strong tech foundation and ability to target customers by zip code and cohort, creating a new revenue stream without impacting the core ordering experience.

Capital Allocation and Debt Management

The company's overall capex spend has been in the range of ₹700-850 crores in recent years. While supply chain capex has peaked, the focus is shifting to store capex to support the target of 1,000 new stores in three years. The EUR 110 million acquisition debt in the Netherlands entity for the Turkey business is now fully serviced by the Turkey operations' internal cash flows, eliminating the need for funds from the India business for interest obligations. Management expects to provide guidance on the FY27 capex budget in the next quarter.

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