Summary
Jubilant FoodWorks Limited - Q3 FY26 Earnings Call Summary Tuesday, February 10, 2026 5:00 PM
Event Participants
Executives 6 Apar (Head of IR), Aslan Saranga (CEO - Turkey), Hari S. Bhartia (Co-Chairman), Sameer Khetarpal (CEO & MD), Shyam S. Bhartia (Chairman), Suman Hegde (CFO)
Analysts 6 Aditya Soman (CLSA), Amit Sachdeva (UBS), Ashish Kanodia (Citigroup), Jay Doshi (Kotak), Manish Poddar (Invesco), Manoj Menon (ICICI Securities), Nihal Mahesh Jham (HSBC), Vivek M (Jefferies)
Financials & KPIs
| Metric | Reported | Commentary |
|---|---|---|
| Consolidated Revenue | ₹2,440 crores | +13.3% YoY; driven by double-digit growth across all domestic and international segments. |
| India Revenue | ₹1,800 crores | +11.8% YoY; supported by 10% order growth and network expansion. |
| Domino’s India LFL | 5.0% | Positive LFL for 8th consecutive quarter; lapping a high base of 12.5% in the previous year. |
| Consolidated EBITDA | ₹500.2 crores | +20.0% YoY; reported margin at 20.5%, up +110 bps YoY. |
| India Gross Margin | 74.9% | +52 bps QoQ and +80 bps over 6 months; driven by favorable product mix and efficiency. |
| India Pre-Ind AS EBITDA | 13.3% | +90 bps YoY and +120 bps QoQ improvement due to pricing and cost discipline. |
| Consolidated PAT | ₹138.8 crores* | +94.0% YoY (before exceptional items); PAT margin expanded by +167 bps. |
| Store Count (Total) | 3,600 units | 114 stores added in Q3; India footprint reached 2,530 stores. |
| Monthly Transacting Users | 16 million | +20% YoY growth; reflects strong adoption of the proprietary app. |
| Capex (Annualized) | ₹700-850 crores | Sustained investment in store network and tech; supply chain capex has peaked. |
Note: Calculated based on revenue and reported margin improvement.
Geographic & Segment Commentary
- Domino’s India: Achieved 10.7% revenue growth driven by 10% order growth and 5% LFL. The brand opened 75 stores in Q3 (200 in 9M FY26), marking the highest 9-month expansion ever. Focus remains on premiumization through Sourdough and Cheese Lava launches which are gross margin accretive.
- Popeyes India: Delivered high double-digit LFL growth for the second consecutive quarter with 73 total stores. Management is shifting focus toward “Flavor Burst” burgers and 15-piece buckets to compete as a challenger brand. Store-level profitability is improving, and separate reporting is expected upon reaching the 100-store milestone.
- Turkey (DP Eurasia): Continued strong performance with double-digit growth and 33 store additions (15 Domino’s, 18 COFFY). The business is now entirely servicing its acquisition-related debt through internal cash flows, paying interest obligations for the last three quarters.
- Sri Lanka & Bangladesh: Both markets reported high double-digit top-line growth. Operations show a positive trajectory in both margin expansion and bottom-line improvement.
Company-Specific & Strategic Commentary
- Technology & AI Monetization: Launched post-order advertising on the app, partnering with over 10 brands including Amazon and Apple. Management targets ad revenue to eventually reach 1% of total online sales.
- Product Innovation & Mix: Shifted strategy toward margin-accretive launches like Sourdough Pizza and Cheese Lava Pull-Apart. These products helped offset persistent inflation in dairy, oil, and flour.
- Operational Discipline: Site selection for new stores is now 100% AI-enabled, targeting 1,000 new stores over the next three years. Management is also reducing average store square footage to optimize rental costs as delivery reaches 75% of the mix.
- Competitive Strategy: Maintained “Free Delivery” for two years while matching aggregator minimum order values (₹99) in specific regions to protect market share against Swiggy/Zomato.
Guidance & Outlook
| Metric | Guidance / Outlook | Commentary |
|---|---|---|
| Domino’s India LFL | 5% - 7% | Management target for sustainable long-term growth despite high bases. |
| Standalone Revenue Growth | ~15% | Driven by LFL targets and aggressive store expansion in white spaces. |
| Pre-Ind AS EBITDA Margin | ~15% (Target) | Aims for 200 bps improvement over FY24 levels via gross margin and EBU drag reduction. |
| Store Network Goal | 5,000+ stores | Long-term structural target to build a deeply penetrated delivery network. |
Risks & Constraints
| Risk | Context |
|---|---|
| Input Cost Inflation | Management noted persistent inflation in essential commodities like dairy, oil, and flour. While gross margins improved via mix, sustained commodity spikes could pressure margins. |
| Aggregator Competition | Food delivery platforms are lowering minimum order values and increasing platform fees. JFL must balance maintaining its own app’s price advantage while potentially matching aggregator moves. |
| Segment Drags | Smaller brands (Dunkin, Hong’s) and early-stage Popeyes currently create a ~230-250 bps drag on consolidated margins. The speed of “halving” this drag is critical to meeting the 15% margin target. |
Q&A Highlights
Margins and Delivery Strategy
- Question: How did margins expand despite decelerating LFL growth? (Vivek M, Jefferies)
- Answer: Growth investments in FY25 (Free delivery/Big Big Pizza) were dilutive, but current focus is on accretive mix (Sourdough) and calibrated pricing. Other expenses are growing slower than revenue, providing operating leverage (Sameer Khetarpal, Suman Hegde).
Aggregator Dynamics
- Question: How do you view platform fees and the competitive landscape with Swiggy/Zomato? (Vivek M, Jefferies)
- Answer: JFL wants its own app to be the fastest-growing and most immersive channel. Aggregators dropped MOV to ₹99, which JFL matched selectively. Platform fees remain a “lever” JFL could use but currently prefers to keep the journey friction-free (Sameer Khetarpal).
Popeyes Scalability
- Question: When will you report Popeyes as a separate segment and how is the model evolving? (Aditya Soman, CLSA / Ashish Kanodia, Citi)
- Answer: Separate reporting will likely start in Q1 FY27 after crossing 100 stores. The focus is on matching industry-par ADS and gross margins. JFL corrected the US-style large-store formats to more efficient Indian layouts (Sameer Khetarpal).
Ad Monetization
- Question: What is the potential for app-based advertising revenue? (Manish Poddar, Invesco)
- Answer: JFL targets 1% of online sales from ads. Focus is exclusively on post-order pages to avoid interrupting the buying journey. High app engagement (16m MAU) allows for zip-code-level targeting (Sameer Khetarpal).
Turkey Debt
- Question: What is the status of the €110 million acquisition debt? (Ashish Kanodia, Citigroup)
- Answer: The Turkey business is now funding 100% of the interest obligations from internal cash flows. No funds were remitted from India for debt servicing in recent quarters (Suman Hegde).
Key Takeaway
Jubilant FoodWorks delivered a robust Q3 FY26, characterized by 13.3% consolidated revenue growth and a notable 20% surge in EBITDA. Domino’s India achieved 5% LFL growth on a high base, while the network expansion accelerated with 114 total store additions. Strategically, the company successfully transitioned from growth-at-any-cost to margin-focused execution, leveraging AI for site selection and app monetization while launching margin-accretive products like Sourdough pizza. The Turkey business reached a financial milestone by self-servicing its acquisition debt interest through internal cash flows. While commodity inflation in dairy and oil remains a watch point, management’s discipline in head-count and store sizing has led to a 110 bps expansion in EBITDA margins. Looking forward, the company remains committed to a ~15% standalone growth trajectory and a 5,000-store long-term goal, supported by a maturing Popeyes brand and a highly efficient proprietary technology stack.
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