Jubilant FoodWorks slips after management flags near-term margin headwinds
The company?s consolidated revenue from operations rose 19.3% YoY to Rs 2,499.5 crore in Q4 FY26 from Rs 2,095 crore in Q4 FY25.
Profit after tax surged 67.1% YoY to Rs 82.4 crore in Q4 FY26 from Rs 49.3 crore in the year-ago quarter. PAT from continuing operations increased 67.3% to Rs 93.6 crore.
Profit before tax from continuing operations before exceptional items stood at Rs 122 crore in Q4 FY26, up 57.8% YoY.
Operating EBITDA increased 23.7% to Rs 484.9 crore, while EBITDA margin improved 69 basis points YoY to 19.4%.
Gross profit rose 19.1% to Rs 1,786.4 crore during the quarter, although gross margin slipped marginally by 13 basis points to 71.5%.
On the cost front, raw material costs increased 19.9% YoY to Rs 713 crore during the quarter. Personnel expenses climbed 21.4% YoY to Rs 449.9 crore, while manufacturing and other expenses increased 15.4% to Rs 851.6 crore. Depreciation expense rose 28.5% to Rs 269.4 crore.
For FY26, Jubilant FoodWorks reported revenue from operations of Rs 9,512.5 crore, up 17.4% YoY. Annual operating EBITDA rose 19.1% to Rs 1,887.8 crore, with EBITDA margin improving to 19.8% from 19.6% in FY25. PAT surged 104.6% to Rs 444.2 crore from Rs 217.1 crore in FY25, while PAT from continuing operations rose 54.4% to Rs 386 crore.
However, the Street appeared concerned about slowing momentum in the India business. Standalone revenue grew only 6.4% YoY to Rs 1,679.7 crore, while standalone PAT from continuing operations before exceptional items declined 2.8% YoY to Rs 53.7 crore. PAT margin compressed 30 bps YoY to 3.2%.
Domino?s India revenue increased 5% YoY, while delivery revenue rose 10.3% and overall order volumes grew 10.4% during the quarter.
Management said growth during the quarter was impacted by a high base of 12.1% like-for-like (LFL) growth in the year-ago period, along with temporary factors such as Ramadan, school examinations and the shift of Navratri into Q4 from Q1 last year. The company added that dine-in and takeaway growth remained relatively soft during the quarter, weighing on overall LFL growth. Jubilant FoodWorks also disclosed that temporary LPG supply disruptions in select markets affected Domino?s India LFL growth by around 30-40 basis points in Q4 FY26.
The company said it managed the LPG disruption through menu reconfiguration, dynamic delivery catchments and alternative energy sources, adding that LPG supplies have largely normalised in Q1 FY27. Going forward, management said its focus remains on delivering sustainable 5-7% LFL growth.
Investors also appeared cautious about management commentary around future margin pressures. Jubilant FoodWorks warned of rising LPG costs, inflation in cheese, oil and packaging materials, as well as higher labour costs due to wage revisions. The company said a complete pass-through of these costs to consumers may not be feasible, which could create near-term pressure on margins.
Management further said affordability-led interventions such as lowering the free delivery threshold to Rs 99, targeted cashbacks and removal of packaging charges in select markets helped sustain order momentum, but weighed on average bill values.
On the operational front, the group added 69 net stores during the quarter, taking its global network to 3,636 stores.
International operations remained strong, with Turkey revenue rising 59.2% YoY to Rs 764.4 crore and PAT from continuing operations surging 150% to Rs 57.6 crore. Domino?s Sri Lanka revenue increased 61.4% YoY to Rs 36.7 crore, while Domino?s Bangladesh revenue rose 29.4% to Rs 20.9 crore. The company added 8 net stores across international markets during the quarter, taking the overseas store count to 1,074.
Jubilant FoodWorks operates quick-service restaurant brands including Domino?s Pizza, Dunkin? and Popeyes in India and several international markets. The Group has a strong portfolio of brands in emerging markets with franchise rights for two global brands - Domino?s and Popeyes ? and two own-brands, Hong's Kitchen, an Indo-Chinese QSR brand in India, and a CAF? brand - COFFY in Turkey.
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