Jubilant FoodWorks ends FY26 with strong consolidated growth, but India LFL was soft in Q4

Jubilant FoodWorks closed Q4 FY26 and FY26 with a clear contrast in its numbers. Consolidated performance remained strong, supported by international growth and steady profitability in Turkey, while India showed resilient order momentum but a weak like-for-like quarter for Domino’s.

For Q4 FY26, consolidated revenue from operations rose to INR 2,499.5 crore, up 19.3% year-on-year. Operating EBITDA increased to INR 484.9 crore and EBITDA margin improved to 19.4%. Profit after tax from continuing operations before exceptional items was INR 93.6 crore, with PAT margin rising to 3.7%.

For FY26, consolidated revenue from operations reached INR 9,512.5 crore, up 17.4%. EBITDA rose to INR 1,887.8 crore and margin improved slightly to 19.8%. PAT from continuing operations before exceptional items increased to INR 411.3 crore, taking PAT margin to 4.3%.

FY26 growth was broad-based, led by Domino’s scale and Turkey momentum

The group ended FY26 with 3,636 stores worldwide, after adding 351 net stores during the year. Domino’s remained the engine, ending FY26 at 3,335 stores across India and international markets. Popeyes in India expanded to 78 stores. The company’s own brands were smaller in scale, with Hong’s Kitchen at 29 stores in India and COFFY at 194 stores in Turkey.

The consolidated revenue mix continues to be India-led but with rising contribution from Turkey. The Q4 slide shows India and Turkey as the dominant contributors, and FY26 revenue was disclosed with India at 72% and Turkey at 26%.

Financial summary (as reported)

Note: PAT is for continuing operations before exceptional items, as per the presentation.

India delivered order growth, but Domino’s LFL was muted in Q4

India’s standalone revenue for Q4 FY26 was INR 1,679.7 crore, up 6.4% year-on-year. EBITDA margin improved to 20.5% and EBITDA increased to INR 344.4 crore. PAT before exceptional items was INR 53.7 crore, down 2.8% year-on-year, and PAT margin was 3.2%.

Operationally, Domino’s saw strong order growth of 10.4% year-on-year, and delivery revenue grew 10.3%, with delivery mix at 76.1%. The company added 59 Domino’s stores in the quarter and expanded to 10 new cities, taking its presence to 521 cities.

However, the Q4 slide disclosed Domino’s India LFL growth of only 0.2% year-on-year, with ADS at INR 80,069 for mature stores. In the earnings call, management pushed investors to focus on annual performance rather than quarter-on-quarter movement. The CEO also stated that the main issue to solve is dine-in and takeaway, while delivery remains the company’s strength.

A key commercial decision discussed on the call was the reduction in minimum order value from INR 149 to INR 99. Management said this was a conscious move to build long-term customer acquisition and volume growth, even if it reduces average ticket size.

Margin levers are structural, but inflation is a near-term headwind

Gross margin in India improved sharply in Q4, with standalone gross margin at 75.5%, up 98 basis points year-on-year. The company attributed this to an improving mix of margin-accretive SKUs and reduced wastage. Management also referenced premium product launches and calibrated pricing as contributors.

At the same time, the call highlighted multiple inflation vectors. Management quantified the energy headwind at roughly 100 to 120 basis points and said pricing increases of about 1.2% had been passed to customers. The CFO also flagged wage inflation from minimum wage increases across 11 states and said the Labour Code impact was about 20-odd basis points, while noting commodity inflation risk could rise with higher logistics costs.

Management did not provide a quarter-specific margin forecast, stating the duration of inflation pressures is hard to predict. Still, it reiterated that the long-term margin expansion goal of 200 basis points remains intact, while acknowledging short-term pressure.

International: Turkey remains a profit anchor, SL and BAN scale steadily

Turkey continued to stand out in profitability. In Q4 FY26, Turkey revenue from operations was INR 764.4 crore, up 59.2% year-on-year, and PAT margin was 7.5%. For FY26, Turkey revenue was INR 2,456.0 crore, up 28.8%, with PAT margin at 8.3%. Management attributed improved PAT margins partly to refinancing of loans from Lira to Euro, and stated the business generates cash flows and repatriates dividend.

COFFY, the group’s cafe brand in Turkey, was highlighted as the fifth largest coffee brand in Turkey by store footprint, and management noted a price index correction in Q4.

Sri Lanka and Bangladesh remained smaller but fast-growing markets. Sri Lanka reported Q4 revenue of INR 36.7 crore, up 61.4%, and FY26 revenue of INR 128.5 crore, up 64.3%. Bangladesh reported Q4 revenue of INR 20.9 crore, up 29.4%, and FY26 revenue of INR 79.9 crore, up 27.4%.

Cash flow improved after a volatile FY23-FY24 phase

The presentation emphasised improving free cash flow generation. On a consolidated basis, cash flow from operations rose to INR 1,252.1 crore in FY26, with free cash flow to firm at INR 247.2 crore. On a standalone basis, cash flow from operations was INR 916.6 crore, with free cash flow to firm at INR 102.7 crore.

Both series show that free cash flow was negative in FY23 and FY24 before returning to positive in FY25 and strengthening further in FY26.

What to watch after FY26

The core FY26 narrative is clear. Jubilant FoodWorks is scaling its store base and sustaining consolidated growth, supported by Turkey’s strong profitability and improving cash generation. In India, delivery remains robust and technology initiatives are pushing owned-channel engagement, with own-app MAU reaching 17.1 million in Q4 FY26.

The near-term investor debate will likely revolve around two points. First, whether Domino’s India can move back from a weak Q4 like-for-like print to its stated medium-term range of 5% to 7%. Second, how effectively the company can protect margins against energy and wage inflation while still prioritising volume growth. Management’s stance is that structural levers such as wastage reduction, premium mix and productivity gains remain in place, even if the next few quarters see volatility.