Jubilant FoodWorks: A Quarter of Strategic Growth and Expanding Profitability

Jubilant FoodWorks Limited, a leading multi-brand food-tech company, has reported a robust performance for the third quarter of fiscal year 2026 (Q3 FY26), demonstrating strong growth across its consolidated operations. The company, known for its extensive portfolio including Domino's, Popeyes, Dunkin', Hong's Kitchen, and COFFY, achieved significant milestones in revenue, profitability, and network expansion, reinforcing its strategic direction and operational discipline.

For Q3 FY26, Jubilant FoodWorks posted a consolidated revenue from operations of 2437.2 Crore, marking a substantial 13.3% year-on-year (YoY) growth. The operating EBITDA stood at 482.3 Crore, reflecting a 20.0% YoY increase, while the profit after tax (PAT) surged by an impressive 93.9% YoY to 98.1 Crore. This strong financial showing underscores the effectiveness of the company's calibrated price increases, favorable mix movements, and productivity-led efficiencies.

India Segment: Driving Growth and Innovation

The India segment, a cornerstone of Jubilant's operations, delivered a standalone revenue of 1801.5 Crore, growing 11.8% YoY. Domino's India continued its impressive run with a 5% like-for-like (LFL) growth, building on a strong base of 12.5% LFL growth in the same quarter last year. This marks the eighth consecutive quarter of positive LFL growth for Domino's, driven by a healthy 10% order growth and a 16.0% YoY increase in delivery channel revenue, which now accounts for 74.9% of the mix.

Network expansion in India was robust, with 75 new Domino's stores added in Q3 alone, contributing to approximately 200 new stores in the first nine months of the fiscal year—the highest ever for Domino's India. Popeyes also showed strong momentum, achieving high double-digit LFL growth for the second consecutive quarter and expanding its footprint by 5 stores to reach a total of 73. The company is increasingly confident in Popeyes emerging as a significant growth vector.

Menu innovation played a crucial role, with new product launches like Sourdough Pizza and Cheese Lava Pull Apart receiving overwhelming customer response and rapidly scaling. These products are also accretive to gross margins. The company's technology and AI initiatives are yielding tangible outcomes, with monthly transacting users on its apps growing over 20% YoY. Furthermore, the post-order page advertising platform is gaining traction, with over 10 active clients in the quarter, indicating a new avenue for monetization.

International Operations: Consistent Performance and Strategic Debt Management

Jubilant's international businesses also contributed significantly to the consolidated performance. The Turkey segment reported a revenue of 580.1 Crore, growing 15.0% YoY, with PAT surging by 202.0%. Notably, the Turkey business is now self-sufficient in servicing its acquisition-related debt through internal cash flows, reducing the financial burden on the parent company. The segment added 33 new stores, including 15 Domino's and 18 COFFY stores.

Sri Lanka and Bangladesh also demonstrated strong top-line growth. Sri Lanka's revenue stood at 35.3 Crore, with a 65.9% YoY growth, while Bangladesh recorded 21.9 Crore in revenue, growing 26.6% YoY. Both markets added 3 new stores each, indicating consistent expansion and improving profitability trajectories.

Margin Expansion and Future Outlook

The company's focus on margin expansion yielded positive results. Consolidated EBITDA margin (Pre-Ind AS 116) improved by 79 basis points (bps) YoY to 13.6%, while reported EBITDA margin expanded by 110 bps YoY to 19.8%. Standalone reported EBITDA margin expanded by 109 bps YoY to 20.5%. This improvement was driven by portfolio-wide gross margin enhancements, gains in store productivity, and operating leverage, despite persistent inflation in dairy, oil, and flour.

Management provided a clear outlook, expecting Domino's India to maintain LFL growth of 5-7% and overall standalone top-line growth of around 15%. The goal is to achieve a pre-Ind AS margin closer to 15% and improve EBITDA margins by approximately 200 bps over FY24 levels. The company plans to open 1,000 new stores in the next three years, with a strategic shift in capex towards store expansion as supply chain infrastructure peaks. While dine-in and takeaway channels require re-evaluation, the company remains confident in its ability to drive durable long-term value through disciplined execution and continuous innovation.