Jubilant FoodWorks reported a strong performance for Q3 FY’26, achieving 13.3% year-on-year growth in consolidated revenue, reaching Rs. 24.4 billion, and a solid 20% rise in reported EBITDA. Domino’s India sustained momentum with positive like-for-like growth for the eighth consecutive quarter, while the Turkey business paid down acquisition debt using internal cash flows. The company remains focused on aggressive network expansion, targeting over 5,000 stores.
Q3 FY’26 Financial Highlights
Jubilant FoodWorks announced a strong operational and financial performance for the third quarter of FY’26, ending February 10, 2026. The management highlighted an overall performance characterized by strong growth and expanding profitability, driven by disciplined execution across all business segments.
Consolidated revenue for the quarter stood at Rs. 24.4 billion, marking a 13.3% growth year-on-year. Reported EBITDA saw a solid 20% rise, with the consolidated EBITDA margin expanding by 110 basis points. On a standalone basis, Profit After Tax (PAT) from continuing operations grew by 27%.
India Business Performance
The core India business continued its double-digit trajectory, with revenue growing 11.8% Y-o-Y, reaching Rs. 18 billion. Domino’s India delivered 5% like-for-like (LFL) growth, marking its eighth consecutive quarter of positive LFL, supported by a 10.7% year-on-year revenue increase driven by 10% order growth. The EBITDA margin for the India business improved by 109 basis points.
Popeyes maintained strong momentum, delivering high double-digit LFL growth for the second straight quarter, adding 5 stores to reach 73 locations. The business showed handsome gains on the margin front, with the gross margin improving sequentially by 52 basis points to 74.9%. The reported consolidated EBITDA margin improved 110 basis points year-on-year to 20.5%.
Network Expansion and Future Outlook
The company executed significant network expansion, adding 114 stores during the quarter, bringing the total store count close to 3,600 (with approximately 2,530 in India). Domino’s in India added about 200 new stores in the first nine months of the fiscal year, including 75 stores in Q3 alone, marking the highest ever expansion pace for the brand.
Management reaffirmed their goal of building a large 5,000-plus store business. On LFL guidance for Domino’s standalone business, Sameer Khetarpal stated a continued target of 5% to 7% growth, noting that the company is already lapping high bases from the previous year.
International Business Update
The Turkey business performed ahead of plans, achieving double-digit growth and strong PAT margins. Notably, the Turkey entity is now servicing its acquisition-related debt entirely through internal cash flows. The business added 33 new stores this quarter, including 15 Domino’s and 18 COFFY stores. Sri Lanka and Bangladesh also delivered high double-digit growth.
Q&A Session Key Takeaways
Margin Sustainability
Regarding margin improvement beyond gross margins, management noted that operating leverage is kicking in, with personnel and manufacturing expenses growing slower than the business’s 12% growth rate. While anticipating a slight impact from the Labour Code implementation in April (estimated at 10 to 15 bps), the focus remains on driving efficiencies through technology and AI deployment in G&A functions.
Competition and Strategy
In response to questions about competing with other food categories, management clarified that the competition is the overall $60 billion food services market (including dosa, idli, biryani, etc.). The goal is to increase pizza’s share of consumption occasions by introducing products at various price points, such as the premium Sourdough Pizza and lower-end offerings like the Rs. 49, 59, 69, 79 pizza.
Capex and Royalties
Overall capital expenditure for the last couple of years has ranged between Rs. 700 crores to Rs. 850 crores. While supply chain capex has peaked, store capex is expected to increase as the company plans to open 1,000 stores over the next 3 years. On the royalty front, management confirmed they expect no upward or downward movement on the existing franchise agreement rate.
Source: BSE
