Jubilant FoodWorks Q2 profit up 0.5% despite 11.8% revenue growth

Jubilant FoodWorks Limited reported Q2FY27 consolidated revenue growth of 11.8% to Rs 2,607.9 crore, while profit after tax, or PAT, from continuing operations before exceptional items rose 0.5% to Rs 113.9 crore. Earnings before interest, tax, depreciation and amortisation, or EBITDA, increased 7.3%, and the consolidated EBITDA margin declined to 19.7%.

Why did JFL's Q2 profit lag revenue growth?

JFL's consolidated profit lagged revenue because EBITDA rose 7.3%, below the 11.8% revenue increase, and EBITDA margin fell by 83 basis points, or bps, year on year to 19.7% from 20.5%. Management attributed the margin contraction to hyperinflation-accounting-related monetary gains and losses in DP Eurasia.

Consolidated PAT from continuing operations before exceptional items was Rs 113.9 crore in Q2FY27, compared with Rs 113.4 crore in Q2FY26 and Rs 103.2 crore in Q1FY27. PAT margin was 4.4%, down from 4.9% a year earlier but above 4.0% in the preceding quarter, showing a sequential recovery in profit conversion.

The comparisons exclude Dunkin after its recognition as discontinued operations in current and prior periods. Group system sales were Rs 3,109.4 crore in Q2FY27, while India supplied 72% of consolidated revenue and Eurasia, comprising Turkey, Georgia and Azerbaijan, supplied 26%; both shares were unchanged from Q1FY27.

How did JFL's standalone margins change in Q2FY27?

JFL's standalone EBITDA margin increased by 16 bps year on year to 19.8% in Q2FY27, while standalone PAT margin declined by 14 bps to 3.8%. Standalone revenue from operations grew 11.5% to Rs 1,885 crore and EBITDA rose 12.4% to Rs 372.4 crore, slightly faster than revenue.

Standalone gross margin expanded by 110 bps to 75.5% from 74.4% in Q2FY26, which JFL attributed to sourcing efficiencies. Adjusted EBITDA, measured before Indian Accounting Standard 116, or Ind AS 116, lease accounting, rose 12.1% to Rs 233.2 crore, with adjusted EBITDA margin at 12.4% versus 12.3% a year earlier.

Standalone PAT from continuing operations before exceptional items was Rs 72.5 crore, compared with Rs 67.4 crore in Q2FY26 and Rs 72.8 crore in Q1FY27. The 7.6% year-on-year increase did not extend sequentially, as PAT declined Rs 0.3 crore from Q1FY27; adjusted PAT margin before Ind AS 116 was 4.5% in Q2FY27.

Which businesses drove JFL's quarterly revenue growth?

JFL's Domino's India business was the largest disclosed contributor, with revenue increasing 9.2% year on year to Rs 1,792.2 crore in Q2FY27. Order growth was 6.3%, like-for-like, or LFL, growth reached 4.1%, and delivery revenue rose 11.3%; delivery represented 75.8% of the quarter's revenue mix.

Domino's India LFL growth improved from 2.5% in Q1FY27 and 0.2% in Q4FY26. Average daily sales, or ADS, were Rs 81,400, compared with Rs 78,200 a year earlier and Rs 82,200 in Q1FY27, while gross margin grew 121 bps to 75.8% and the store base reached 2,601 across 587 cities.

Popeyes grew faster from a smaller base, as revenue rose 121.9% year on year to Rs 75.9 crore and LFL growth reached 53.0%. It added 11 stores in Q2FY27 to reach 99, while system-level ADS was Rs 90,300, below Rs 96,100 in Q1FY27; gross margin increased 149 bps to 68.5%.

The total network added 108 net stores during Q2FY27 and ended at 3,820 worldwide. Domino's added 92 stores, including 88 in India, Popeyes added 11 and COFFY added five; JFL also said infrastructure upgrades were complete at about 20% of identified dine-in and takeaway-heavy Domino's stores.

What did JFL's international operations contribute?

JFL's DP Eurasia revenue increased 12.6% year on year to Rs 667.6 crore in Q2FY27, but EBITDA fell 2.4% to Rs 139.7 crore because of a hyperinflationary accounting adjustment. PAT from continuing operations before exceptional items rose 0.3% to Rs 61.7 crore, while PAT margin declined to 9.2% from 10.4%.

Turkey's inflation-adjusted sales indicators were negative despite positive nominal LFL growth in Turkish lira. Domino's pre-inflation-adjusted LFL was 28.2%, but inflation-adjusted LFL was negative 2.1%; COFFY recorded 6.5% and negative 18.8%, respectively, as actual inflation exceeded expected inflation under International Accounting Standard 29.

Sri Lanka revenue rose 9.1% year on year to Rs 34.6 crore, but was below Rs 34.9 crore in Q1FY27. Bangladesh revenue rose 12.5% to Rs 21.8 crore from Rs 19.4 crore a year earlier, but was lower than Rs 22.3 crore in the preceding quarter.

Is JFL generating more cash while expanding stores?

JFL's consolidated free cash flow to firm increased 22.2% year on year to Rs 154.7 crore in H1FY27, while cash flow from operations rose to Rs 641.5 crore from Rs 606.6 crore in H1FY26. Cash flow from operations is stated after repayment of lease liabilities under Ind AS 116.

Standalone free cash flow to firm increased 21.8% to Rs 23.1 crore in H1FY27 from Rs 19 crore in H1FY26. Standalone cash flow from operations rose to Rs 441.5 crore from Rs 434.6 crore, and JFL defines free cash flow to firm as operating cash flow less net capital expenditure on a cash basis.

The cash-flow increase coincided with 108 net store additions in Q2FY27, including 99 in India and eight in Eurasia. Management said its priorities are disciplined Domino's India execution, Popeyes scale and unit economics, international business development, and technology deployment across operations.

Conclusion

JFL's Q2FY27 results show that double-digit consolidated revenue growth did not translate into comparable profit growth: revenue rose 11.8% to Rs 2,607.9 crore, EBITDA rose 7.3%, and PAT increased 0.5% to Rs 113.9 crore. Standalone operations differed, with EBITDA margin expanding 16 bps as gross margin increased 110 bps.

The next disclosed markers are the recovery in Domino's dine-in and takeaway business after upgrades at about 20% of identified stores and the national rollout of the Rs 119 My Meal offer. Management's plan also calls for Popeyes expansion guided by store-level returns, while DP Eurasia's inflation accounting and inflation-adjusted LFL remain unresolved variables for consolidated results.