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Informist, Tuesday, Oct. 28, 2025

By Anshul Choudhary

MUMBAI/NEW DELHI – Jubilant Foodworks Ltd.'s quarterly earnings growth is expected to slow down as the company's margins for the September quarter likely declined on year due to higher discounts and launch of lower margin products. However, its revenue growth will remain the highest among its competitors as order volumes for Domino's in India remain strong despite facing some hit because of the extended monsoon, brokerages said.

The company is expected to report a net profit of INR 570.60 million for the September quarter, according to the average of estimates from five brokerages. This will translate to about 10% year-on-year growth in net profit, slower than the near 30% rise reported in the June quarter and sharply lower than the over 93% rise clocked in the March quarter. However, the expected 10% growth in the reporting quarter is much better than the September quarter last year, when the net profit had declined 28% due to higher expenses.

Three of these five brokerages expect the company's net profit for the September quarter to rise, with the highest estimate of INR 631 million from Motilal Oswal Financial Services. Nirmal Bang Institutional Equities expects net profit to be unchanged on year and brokerage Prabhudas Lilladher estimates an 8% fall in profit to INR 479 million on expectations of a larger fall in margins. The company had reported a net profit of INR 520.64 million for the September quarter last year.

Jubilant Foodworks' revenue is expected to rise nearly 16% on year to INR 16.99 billion, the company had said in its quarterly update earlier this month. Each of the five brokerages' estimate was largely similar to the provisional revenue figure given by the company. The company has not yet announced the date of its quarterly earnings disclosure.

The expected 16% growth in revenue is slower than the 18-19% growth reported in each of the previous three quarters. However, the estimated revenue growth is better than the 9% rise reported in the September quarter last year. The company's revenue was INR 14.67 billion in the year ago quarter.

The like-for-like growth for the company's Domino's India business is 9.1% for the September quarter, according to the company. This is slower than the 11.6-12.5% growth reported by the business in the previous three quarters.

Brokerages attributed the slowdown in growth to the longer monsoon which hit demand. "While July saw steady traction, demand softened sharply in August and September as rains disrupted peak-hour footfalls," brokerage Nirmal Bang said in its report.

Most of the brokerages expect the company to report lower gross margin due to higher discounts and as the company increased its focus on lower margin products. Brokerages Kotak Securities, Motilal Oswal, and Prabhudas Lilladher expect the company's gross margin to come down 140-170 basis points in the September quarter. The company had reported a gross margin of 76.1% a year ago.

The company's earnings before interest, taxes, depreciation, and amortisation are expected to rise 13% on year to INR 3.21 billion led by higher revenue, as per the average of estimates. However, the EBITDA margin may still drop. Brokerage Prabhudas Lilladher expects the biggest fall of 80 bps in EBITDA margin, while Kotak Securities and Motilal Oswal both expect a lower decline of 40 bps.

The equity market is likely expecting the hit on margins and slowdown in earnings growth as the stock has fallen around 5% since the company reported its June quarter earnings in August. Tuesday, shares of the company closed at INR 600.75 on the National Stock Exchange, up nearly 1%.

Out of the 11 brokerage reports on the company available with Informist, eight have a ‘buy' or equivalent rating on the stock with an average target price of INR 775. The remaining three brokerages have a 'hold' or an equivalent rating with an average target price of INR 718.

Following are the Jul-Sept earnings estimates for Jubilant Foodworks from five brokerage firms in the descending order of the estimate of net profit in INR million:

End

Edited by Ashish Shirke

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