Jubilant Food.

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 item^📎s, 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.

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 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.

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.

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.

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.

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.