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Informist, Monday, Aug. 11, 2025

By Taniva Singha Roy

MUMBAI – Jubilant FoodWorks Ltd., a food service company in India operating, among others, the pizza chain Domino's, is likely to see a substantial rise in its net profit on a quarterly as well as year-on-year basis on the back of improving cost efficiencies and operating leverage, brokerages said. The company is likely to have outperformed industry peers in the June quarter, according to brokerages tracking it.

Jubilant FoodWorks is seen reporting a net profit of INR 704.13 million for the June quarter, up nearly 37% on year and over 42% on quarter, according to the average of estimates from eight broking firms. The company's June quarter revenue is estimated at INR 18.40 billion, up nearly 28% from a year ago and 16% from a quarter ago.

"We expect Jubilant FoodWorks to report standalone revenue growth of 18% on yearly basis, as we expect the growth momentum witnessed over the past few quarters to sustain," Kotak Institutional Equities said. Accordingly, for Domino's India, Kotak expects like-for-like growth of 11.5% on year versus 12.5% and 12.1% in Oct-Dec and Jan-Mar, respectively, and 9.5% on-year growth in the Domino's network to about 2,219 stores.

Analysts' estimates for the company's June quarter net profit are in the range of INR 624 million to INR 910 million. The company's net profit for the March quarter had risen a whopping 93% on year to INR 494.62 million. The revenue for the quarter had risen 19% on year.

The company is scheduled to report its quarterly earnings Wednesday. Shares of the company have fallen over 9% since it declared its earnings for the March quarter on May 14. Monday, shares of the company closed nearly 1% higher at INR 630.45 on the National Stock Exchange.

The company's focus on acquiring new customers and driving order frequency has led to strong growth in deliveries. Value offerings and product innovation will continue to drive order growth in the financial year 2025-26 (Apr-Mar), Motilal Oswal Financial Services said. "We model a recovery in operating margin for the India business to 13.5% in FY27 from 11.9% in FY25, after witnessing a 300 bps (basis points) dip in EBITDA margin (pre-IND AS) during the last two years," it said.

The broking firm further said, "Jubilant FoodWorks is expected to continue being an outlier among quick service restaurant companies in the near term driven by delivery moat, but its valuations are rich." Though dine-in companies are struggling, their operating growth metrics are likely to improve significantly once recovery begins.

Although demand in the quick service restaurant space continues to be muted because of the slowdown in urban consumption coupled with increased competitive intensity in major cities from companies using the cloud kitchen format, Jubilant FoodWorks is expected to continue to outperform peers on profitability given its improving cost efficiencies and operating leverage, according to Antique Stock Broking Ltd.

The company's earnings before interest, tax, depreciation, and amortisation margin is likely to have contracted 140 bps on year to 74.7% during Apr-Jun on higher discounts and focus on value offerings, according to Kotak Institutional Equities. The company's EBITDA margin is expected to remain flat on year at 11.7%, according to Motilal Oswal. In the June quarter, the company's operating EBITDA is seen rising to INR 3.44 billion from INR 2.78 billion a year ago. In the March quarter, the EBITDA had risen 19.7% on year to INR 3.06 billion. The EBITDA margin rose to 19.3% in Jan-Mar from 19.2% a year ago.

"We prefer Jubilant FoodWorks due to its strategy of asset-light expansion and expected scale-up of emerging businesses," Mirae Asset Sharekhan said. The company continues to focus on store additions. It added 55 Domino's India stores during the quarter, Motilal Oswal said. The company's focus has been on value-driven innovations, emphasizing development of new products. It has not increased prices in the past 10-11 quarters. "Overall, we expect Domino's India revenue growth to be 17.5% on year. Domino's growth print continues to be impressive in the context of a subdued demand environment and strong like-for-like print relative to other quick service restaurants," Kotak said.

Of the 14 brokerage reports on the company available with Informist, 11 have a "buy" or equivalent rating on the stock with an average target price of INR 775. The remaining three brokerages have a "hold" rating.

Following are the Apr-Jun standalone earnings estimates, in INR million, for Jubilant FoodWorks based on reports from eight brokerage firms in descending order of net profit:

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Edited by Rajeev Pai

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