Jubilant FoodWorks Limited reported a stronger-than-expected Q1 FY26, with revenue up 11.2% and delivery sales surging 20.1%. The stock rose 5% as the company posted its third consecutive quarter of double-digit like-for-like sales growth.
Jubilant FoodWorks Limited, headquartered in Noida, Uttar Pradesh, is one of India’s largest quick-service restaurant (QSR) operators. The company holds the master franchise rights for Domino’s Pizza, Dunkin’ Donuts, and Hong’s Kitchen in India and select international markets, serving millions through dine-in, takeaway, and a technology-driven delivery network.
On August 12, Jubilant FoodWorks’ shares jumped 5% to ₹670 after the company announced Q1 FY26 earnings that beat market forecasts. The growth was fueled by a mix of affordable menu additions, free delivery offers, and a rapid expansion in store count.
For the quarter ended June 30, 2025:
- Revenue: ₹1,540 crore, up from ₹1,385 crore in Q1 FY25
- Like-for-like sales growth: 11.6% for Domino’s India
- Delivery segment growth: 20.1% YoY
- Net profit: ₹116 crore, up 19.6% from ₹97 crore last year
- EBITDA margin: 12.8% (pre-IND AS), in line with the company’s FY26–28E guidance of 12–14%
The delivery segment continued to outperform, contributing over two-thirds of total sales. Digital channels accounted for more than 70% of delivery orders, supported by the company’s AI-driven recommendation engine and loyalty programs.
Jubilant added 45 new Domino’s outlets during the quarter, taking its India store network past 1,950 outlets. The company’s store expansion plan for FY26 targets more than 200 new stores across its portfolio.
Management reiterated expectations of a 200 basis point EBITDA margin expansion over the next two years, supported by operating leverage, supply chain efficiencies, and strategic cost management. However, they acknowledged that sustaining high double-digit revenue growth could be challenging due to the strong base effect from previous quarters.
Peer operators such as Sapphire Foods and Devyani International posted declines in same-store sales, underscoring Jubilant’s relative strength in the QSR segment. The company’s value-focused strategy, menu innovation, and technology-driven customer engagement have enabled it to buck broader consumption headwinds.
With urban consumers continuing to watch spending, Jubilant’s combination of competitive pricing, fast delivery, and expanding reach positions it well to capture incremental market share in FY26 and beyond.
Investor Takeaways
- Stock Price Reaction: +5% to ₹670 post-results
- Growth Drivers: Affordable menu, strong delivery network, new store openings
- Risks: High base effect, consumer spending slowdown
- FY26 Outlook: Low-teens revenue growth, targeted 200 bps margin expansion
- Valuation Watch: Trading at a premium to QSR peers due to consistent outperformance
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