Analyst Concall
Jubilant FoodWorks focuses on pricing to improve margins
This story was originally published at 20:45 IST on 13 August 2025
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--Jubilant Food: Working closely with food aggregators to gain mkt share
--Jubilant Food: Pricing strategy aimed to improve gross margins
--Jubilant Food: Digitising supply chain to improve gross margins
--CONTEXT: Jubilant Food mgmt comments in a post-earnings analyst call
--Jubilant Food: Interest costs putting pressure on margins
--Jubilant Food: Investment on tech, branding to boost revenue coming qrtrs
By Taniva Singha Roy and Narayana Krishna
MUMBAI – Jubilant FoodWorks Ltd. is focused on improving gross margins through a strategic pricing approach, the company management said at a post-earnings call with investors and analysts Wednesday. To further enhance operational efficiency, Jubilant FoodWorks is digitising its supply chain, which is expected to improve the gross margins, the management said.
The earnings before interest, tax, depreciation, and amortisation margin fell to 19.0% in Apr-Jun from 19.3% a year ago. The company said that higher interest costs are currently putting pressure on its margins.
Better conversion happening because of the app experience for the customer, the comapny said. "We have a high investment cycle behind our supply chain assets, which are commissaries, to support the growth that we will see going forward. Some of the capacities we have invested in are going to last us for the next two to three years," the company's senior management said.
The company is investing on technology and branding to boost revenue in coming quaters. "Sustained investments in technology, innovation, and operational excellence continue to power our competitive edge and promote long-term value creation," the company said in its investor presentation.
Jubilant Foodworks reported revenue from operations of INR 17.02 billion, up 18.2% on year and 7.2% on quarter. The revenue from operations was also below the analysts' estimate of INR 18.40 billion. The growth in revenue was driven by the increased pace of innovation and strong order growth, the company said in its investor presentation.
There is technology investment going on behind store operations improving, behind own delivery management system, which ensures better delivery executives on to the portal, leading to delivery on time, the company's top management said.
The master franchise of Domino's India is working closely with food aggregators to gain market share, the company's senior management said. "We get market share information from aggregators. We overlay our own internal data," it said. On Wednesday, shares of Jubilant Foodworks ended at INR 639.75 on the National Stock Exchange, up 1.1%. The company announced its earnings after market hours. End
Edited by Akul Nishant Akhoury
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