Jubilant FoodWorks Q2 FY26: A Quarter of Robust Growth and Strategic Innovation

Jubilant FoodWorks Limited (JFL), a leading multi-brand food-tech company, has reported a strong performance for the second quarter of Fiscal Year 2026 (Q2 FY26), underscoring its strategic clarity and disciplined execution across its diverse portfolio. The company, known for brands like Domino's, Popeyes, Dunkin', Hong's Kitchen, and COFFY, achieved a consolidated revenue from operations of 2,340.2 crore, marking a significant 19.7% year-on-year growth. This robust topline expansion was complemented by an impressive 53.7% surge in Profit After Tax (PAT) from continued operations, reaching 109.9 crore, with the PAT margin expanding by 104 basis points to 4.7%. The management expressed strong confidence in the results, highlighting consistent improvements in operating and PAT margins across all markets.

The quarter's performance was fueled by strong like-for-like (LFL) growth in key markets and an aggressive network expansion strategy. Domino's India delivered a solid 9.1% LFL growth, demonstrating sustained momentum for seven consecutive quarters. Internationally, Turkey's system sales grew by 29%, with revenue increasing by 28.7% to 592.7 crore, and a PAT margin of 10.4%. Sri Lanka and Bangladesh also contributed significantly, with Domino's revenue growing by 86.1% to 31.7 crore and 54.1% to 19.4 crore, respectively. The company's network expanded by 93 stores in Q2 FY26, bringing the total to 3,480 stores worldwide, with Domino's India alone reaching 500 cities, ahead of internal plans.

Strategic Innovations and Market Leadership

JFL's growth narrative is deeply intertwined with its continuous focus on product innovation and technological advancements. In Q2 FY26, the company introduced the 'Four-Cheese-Sourdough Pizza', a new product form that has garnered exceptional customer feedback and is gaining traction, even in Tier-2 and Tier-3 cities. For Popeyes, seven new variants were added to the 'Flavor Burst Burger' range, reinforcing its position as a brand known for bold flavors. The launch of 'Gourmet Dunkin Donuts' further diversified the festive season offerings.

A significant strategic move was the launch of an ad monetization platform on the Domino's app. This platform, partnering with iconic brands like Apple, Tata Neu, and Flipkart, leverages the app's nearly 15 million monthly active users to create new revenue streams. The company is also adapting artificial intelligence in its technology platform to enhance productivity across all functions, exemplified by the AI-created 'Cheezilla' campaign ad. These initiatives demonstrate JFL's commitment to thought leadership, anticipating sector trends and technological shifts rather than merely reacting to them.

Operational Efficiency and Future Outlook

On the profitability front, JFL's India business saw an improvement in its pre-IndAS EBITDA margin, driven by enhanced operating leverage and productivity gains. The management emphasized tight cost control throughout the supply chain and ongoing initiatives in store manpower, delivery costs, and general & administrative expenses. The company's focus on generating free cash flows and improving payback periods for new stores underscores its disciplined capital allocation strategy.

While the delivery channel continues its strong growth, contributing over 20% to revenue growth, the takeaway business experienced a decline, and dine-in revenue remained flattish. Management acknowledged these areas and is implementing strategies, such as value offerings for dine-in, to address them. The company's guidance for Domino's India includes a target of 15% year-on-year growth, with 5-7% from LFL growth and 7-10% from store expansion. JFL also aims to open approximately 1,000 stores in the next three years and improve EBITDA margins by 200 basis points over the same period, based on FY24 levels.

Sustained Growth and Investor Confidence

Jubilant FoodWorks' Q2 FY26 results reflect a company in a strong growth phase, effectively balancing expansion with profitability. The multi-brand strategy, coupled with continuous innovation in products and technology, positions JFL to capitalize on the rising middle-income class, rapid smartphone penetration, and growing online commerce trends in its emerging markets. The management's transparent communication regarding performance drivers and future targets reinforces investor confidence in its long-term vision and execution capabilities. As JFL continues to expand its footprint and innovate its offerings, it appears well-prepared for a promising second half of the fiscal year and beyond.