Jubilant FoodWorks TAX SHOCKER REVEALED: Demand CUT, Domino's Sales EXPLODE! What Investors MUST Know!

Jubilant FoodWorks Ltd., operator of Domino's Pizza and Dunkin' Donuts in India, has announced developments regarding a tax demand rectification and its strong second-quarter financial performance.

Tax Matter

• On December 4, 2025, the company received a rectification order from the Income Tax Department.
• This order reduced the tax demand for the fiscal year 2021 from ₹216.19 crore to ₹190.21 crore.
• Jubilant FoodWorks stated that the revised demand still overlooks its previously submitted contentions and that it has filed an appeal.
• The company reiterates its expectation that the impugned tax demand will likely be deleted upon completion of the redressal process.
• It has maintained that no material financial implications are anticipated from this order.

Q2 Performance

• For the quarter ending September 30, 2025, the company reported a 19.7% year-on-year increase in revenue to ₹2,340 crore.
• This growth was driven by healthy performance across its brands, particularly Domino's Pizza.
• Domino’s India achieved 15.5% YoY revenue growth, fueled by a 15% rise in orders and a 9% like-for-like growth.
• The delivery channel saw a significant surge of 21.6% in revenue.
• Jubilant FoodWorks expanded its network by adding 93 stores, bringing the total to 3,480 outlets.

Stock Movement

• Shares of Jubilant FoodWorks Ltd. closed at ₹591.65 on December 5, marking a slight increase of 0.18% on the BSE.

Impact

• The reduction in the tax demand eases financial uncertainty for Jubilant FoodWorks, although the appeal process continues.
• The strong Q2 earnings performance, driven by Domino's significant growth, signals operational strength and consumer demand.
• Investors may view these developments positively, balancing the ongoing tax dispute with robust business growth.
• Impact Rating: 6/10

Difficult Terms Explained

• Rectification Order: A formal decision by an authority to correct an error in a previous ruling or document.
• Tax Demand: The amount of tax determined by tax authorities to be owed by a taxpayer.
• FY21: Refers to the Fiscal Year 2021 (April 1, 2020 - March 31, 2021).
• Impugned: Disputed or challenged legally.
• Redressal Process: The procedure for seeking a remedy or resolution for a grievance or dispute.
• YoY: Year-on-year, a comparison of a metric over a 12-month period to the same period in the prior year.
• Like-for-like growth: Measures the sales growth of existing stores open for at least a year, excluding new openings or closures.