JUBLFOOD - Jubilant Food.

📊 NSE: JUBLFOOD 🏢 Hotels 📅 Last Updated: 12/14/2025 8:42

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 19.7% YoY to INR 2,340.2 Cr in Q2 FY26. Domino's India revenue increased 15.5% YoY to INR 1,700 Cr, while Turkey (DP Eurasia) reported INR 590 Cr. Sri Lanka revenue surged 86.1% YoY to INR 31.7 Cr and Bangladesh grew 54.1% YoY to INR 19.4 Cr.

Geographic Revenue Split

India remains the dominant market contributing approximately 72.6% of consolidated revenue (INR 1,700 Cr out of INR 2,340.2 Cr). Turkey and other international markets (Bangladesh, Sri Lanka, Azerbaijan, Georgia) contribute the remaining 27.4%.

Profitability Margins

Consolidated PAT margin expanded by 104 bps YoY to 4.7% in Q2 FY26. Turkey business maintains a high PAT margin of 10.4%. Standalone pre-IndAS EBITDA margins improved by 37 bps YoY.

EBITDA Margin

Consolidated EBITDA margin remained steady at 20.3% (INR 476.2 Cr), growing 19.5% YoY. Pre-Ind AS EBITDA margin was 13.9% (INR 324.4 Cr), up 18.5% YoY.

Capital Expenditure

Not disclosed as a total INR Cr figure, but the company added 93 net stores in Q2 FY26 and is expanding seasoning manufacturing capacity in Bangalore and insourcing Popeyes marination to drive long-term efficiency.

Credit Rating & Borrowing

CRISIL A1+ rating reaffirmed for INR 100 Cr Commercial Paper. Interest costs declined 23.5% YoY in Q2 FY26 due to efficient refinancing of Turkey acquisition debt.

⚙️ Operational Drivers

Raw Materials

Key raw materials include 100% Mozzarella cheese, seasoning (manufactured in-house), poultry (for Popeyes), flour for dough, and cooking oil.

Import Sources

Seasoning is manufactured at the Bangalore facility; Popeyes marination has been transitioned from outsourced to insourced production to improve margins.

Key Suppliers

Not specifically named, but the company is increasing vertical integration by manufacturing seasonings and marinations internally.

Capacity Expansion

Current group network stands at 3,480 stores across 6 markets. Domino's India now serves 500 cities. COFFY in Turkey has expanded to 172 cafes with 5 new additions in Q2 FY26.

Raw Material Costs

Raw material costs are managed through insourcing strategies (seasoning and marination) and scale-based sourcing. Popeyes is undergoing a massive drive to improve gross margins by controlling oil consumption and product wastage.

Manufacturing Efficiency

Adding seasoning manufacturing capacities in Bangalore and insourcing Popeyes marination to capture higher margins and ensure quality control.

Logistics & Distribution

Delivery channel revenue grew over 20% YoY, supported by a 16.5% delivery LFL growth in India following the launch of the free delivery initiative.

📈 Strategic Growth

Expected Growth Rate

8-10%

Growth Strategy

Targeting 200 bps EBITDA margin improvement over 3 years from FY24 base by reducing the 200 bps drag from emerging brands by half and achieving G&A leverage. Growth is driven by 9.1% LFL growth in Domino's India, aggressive store expansion (93 stores in Q2), and scaling the COFFY brand in Turkey.

Products & Services

Pizzas (Domino's), Fried Chicken (Popeyes), Donuts and Coffee (Dunkin'), Indo-Chinese cuisine (Hong's Kitchen), and Coffee (COFFY).

Brand Portfolio

Domino’s, Popeyes, Dunkin’, Hong’s Kitchen, COFFY.

New Products/Services

Launched Four Cheese Sourdough Pizza, Big Big Pizza, and Chicken Burst; premium products like sourdough are intended to increase ticket sizes and margins.

Market Expansion

Expanded to 500 cities in India; Turkey business is ramping up COFFY cafes (172 currently) and maintaining strong LFL growth in Domino's Turkey (5.6% inflation-adjusted).

Market Share & Ranking

Leading food-tech company in emerging markets; reported gaining market share in Q2 FY26 due to strong 9.1% LFL growth in India.

Strategic Alliances

Exclusive franchise rights for Domino's, Popeyes, and Dunkin' in specific emerging markets.

🌍 External Factors

Industry Trends

The QSR industry is shifting toward delivery-led growth (20%+ growth for JFL) and premiumization. JFL is positioning itself as a food-tech leader with 3,480 stores and a focus on delivery speed.

Competitive Landscape

Competing with global and local QSR brands; JFL is currently outperforming the market with 9.1% LFL growth in India.

Competitive Moat

Durable moat built on a massive 3,480-store network, 27 years of operational experience, 100% mozzarella cheese quality promise, and a robust integrated supply chain that competitors find difficult to replicate.

Macro Economic Sensitivity

Highly sensitive to food inflation (cheese, oil) and changes in urban disposable income. Turkey operations are sensitive to hyperinflationary trends.

Consumer Behavior

Shift toward 'free delivery' expectations and demand for premium/innovative pizza variants like sourdough.

Geopolitical Risks

Operations in Bangladesh and Sri Lanka are subject to local political and economic stability; Sri Lanka showed strong recovery with 86.1% revenue growth.

⚖️ Regulatory & Governance

Industry Regulations

Subject to food safety standards (FSSAI in India) and local municipal regulations for store operations across six countries.

Environmental Compliance

ESG profile supports credit rating; industry impact includes water consumption and waste generation management.

Taxation Policy Impact

Effective tax rate impacted by international operations; company is contesting a significant tax demand.

Legal Contingencies

Pending Income Tax rectification order demand of INR 190.21 Cr (reduced from INR 216.19 Cr). The company has filed an appeal and does not anticipate material financial implications.

⚠️ Risk Analysis

Key Uncertainties

Sustainability of LFL growth in a high-inflation environment; potential for further tax demands; and the pace of turnaround for emerging brands like Popeyes and Dunkin'.