Motilal Oswal has initiated a 'Buy' rating for Jubilant FoodWorks with a ₹625 target following the company’s 1QFY27 results. The upgrade highlights strong Popeyes growth and a recovery in Domino's order volumes. Investors should track ongoing competitive pressures in the QSR space and the company's ability to maintain margins amidst commodity inflation.
On August 14, 2026, brokerage firm Motilal Oswal upgraded its stance on Jubilant FoodWorks, assigning a 'Buy' rating with a target price of ₹625. This move follows the company’s first-quarter fiscal year 2027 (1QFY27) results, which were released on August 13, 2026. The brokerage noted that the Quick Service Restaurant (QSR) operator achieved a 9% year-over-year revenue growth for the quarter, aligning with market expectations.
The company’s operational performance shows a contrast between its established brand and its newer segment. Domino’s Pizza, which represents a large portion of the business, showed signs of recovery with a like-for-like (LFL) sales growth of 2.5%. This is a notable improvement from the 0.2% growth recorded in the previous quarter. Order volumes for Domino’s also increased by 6.5%, suggesting that customer demand is stabilizing. Simultaneously, the Popeyes brand has become a significant growth driver, posting a 97% surge in revenue and over 40% LFL growth, indicating that the brand is scaling rapidly in the Indian market.
On August 14, following the earnings announcement, Jubilant FoodWorks shares traded in the range of ₹508 to ₹521. While the results brought optimism, some analysts have maintained a cautious view regarding certain areas of the business. A primary concern for observers remains the muted like-for-like growth in the core Domino’s India business. Furthermore, the QSR sector continues to face intense competitive pressures, which could impact the company’s ability to pass on costs to consumers or grow market share.
Management has expressed an optimistic outlook, anticipating that the second quarter of the fiscal year will perform better than the first. They expect a stronger growth trajectory in the latter half of the year. Investors should track whether the company can successfully translate this outlook into reality, specifically by balancing profit margins while aggressively scaling the Popeyes chain. Another important factor to watch will be how commodity price inflation affects the company's EBITDA margins in the coming quarters.