Jubilant FoodWorks Surges: Revenue Jumps 13%, Profits Soar 94%

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AuthorAkshat Lakshkar|Published at:
Jubilant FoodWorks Surges: Revenue Jumps 13%, Profits Soar 94%
Overview

Jubilant FoodWorks reported a robust Q3 FY26 with consolidated revenue up 13.3% year-on-year to Rs. 24.4 billion. Profits (PAT) from continuing operations surged 94%, driven by margin expansion and strong performance in India and Turkey. The company reaffirmed its strategy to build a 5,000+ store business, with significant investments in technology and network expansion.

Jubilant FoodWorks Serves Up Strong Growth in Q3 FY'26

Jubilant FoodWorks Limited, the master franchisee for Domino's and Popeyes in India, has delivered an impressive set of results for the third quarter of fiscal year 2026 (Q3 FY'26), showcasing significant growth in revenue and profitability, and signaling confidence in its ambitious expansion plans.

Financial Highlights

The company reported a consolidated revenue of Rs. 24.4 billion, marking a healthy 13.3% increase year-on-year. This top-line growth was complemented by strong bottom-line performance, with EBITDA growing 20% and an EBITDA margin expansion of 110 basis points. Most notably, Profit After Tax (PAT) from continuing operations, before exceptional items, more than doubled, soaring 94% year-on-year, with PAT margins expanding by 167 basis points.

Digging deeper, the standalone Indian business, which forms the core of its operations, saw revenue grow by 11.8% to Rs. 18 billion. Domino's India achieved a Like-for-Like (LFL) growth of 5%, building on a strong base from the previous year. The operational efficiency was evident in the 52 basis point sequential improvement in gross margin to 74.9% and a 110 basis point year-on-year rise in EBITDA margin to 20.5%.

International Shine & Strategic Focus

The international business also contributed positively. Turkey, despite its debt obligations, delivered double-digit revenue growth and maintained strong profitability. The company actively expanded its footprint, adding 33 new stores across its brands in Turkey alone during the quarter. Sri Lanka and Bangladesh also reported robust growth and margin expansion.

The Road Ahead: 5,000+ Stores and Tech Investments

Jubilant FoodWorks is not just resting on its current achievements; it's investing heavily for the future. Management has set an ambitious target to build a business of over 5,000 stores. To achieve this, the company is prioritizing investments in technology and Artificial Intelligence (AI), enhancing its supply chain capabilities, and strengthening delivery networks.

The company guided for a Domino's India LFL growth of 5% to 7% and standalone revenue growth of approximately 15%. The target for pre-Ind AS EBITDA margin remains around 15%. The Popeyes brand, while still scaling, is being optimized for industry-leading Average Daily Sales (ADS) and gross margins, with a medium-term goal of 250 stores and a business turnover of INR 1,000 crores.

Financial Discipline & Capex

Financial prudence is evident, with the Turkey business fully servicing its acquisition-related debt of EUR 110 million from its own cash flows, ensuring no burden on the Indian operations. The company plans annual capital expenditure (capex) in the range of Rs. 700-850 crores, with store capex expected to rise as it aims to open 1,000 stores in the next three years. Margin improvements are attributed to a better product mix, calibrated price increases, operating leverage, and productivity gains, with per-square-foot rental costs showing a downward trend.

Peer Comparison

Jubilant FoodWorks' performance stands out in the competitive Indian Quick Service Restaurant (QSR) space. While competitors like Westlife Foodworld (McDonald's India) and Devyani International (KFC, Pizza Hut India) are also pursuing growth and expansion, Jubilant's clear focus on Domino's brand strength, coupled with strategic bets on Popeyes and significant technology investments, positions it uniquely. The company's ability to consistently grow revenue and expand margins, even on a high base, demonstrates strong execution capabilities against its peers. Its aggressive store expansion targets also signal a proactive approach to capturing market share in a rapidly growing Indian consumer market.

Outlook

The company appears confident in its strategy to drive long-term shareholder value through continued investment in technology, supply chain, and store expansion. The focus remains on gaining market share across various QSR segments, including pizzas, bowls, chicken, and burgers.

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