More Stories

Informist, Wednesday, May 20, 2026

 

Please click here to read all liners published on this story

--Jubilant Food:Avg order value fell as lowered minimum order value to INR 99 
--CONTEXT: Jubilant FoodWorks mgmt's comments in post-earnings analyst call 
--Jubilant Food: Consciously cut minimum order value to INR 99 from INR 149 
--Jubilant Food: Hope margin pressure stays only for couple of quarters 
--Jubilant Food: Margin expansion guidance of 200 bps by FY28 holds 
--Jubilant Food: Co moving quickly to piped natural gas 
--Jubilant Food: Moving to electric ovens due to LPG shortage 
--Jubilant Food: Believe logistics costs can improve further 
--Jubilant Food: Pulling multiple levers to meet margin guidance 
--Jubilant Food: Launched premium products with better margins 

 

By Shakshi Jain and Ashutosh Pati

 

NEW DELHI/MUMBAI – Notwithstanding the perceived near-term pressure on the operating margin from higher commodity, labour, and energy costs, Jubilant FoodWorks Ltd. is confident of meeting its medium-term guidance of a 200-basis-point expansion over 2023-24 (Apr-Mar) levels by FY28, its management said at a post-earnings conference call with analysts Wednesday.

 

The food service company has multiple levers to pull to protect its margins, according to management. While Jubilant FoodWorks has an edge over the competition, with a large portion of its fleet comprising electric vehicles, management believes the company's logistics costs can improve further. Moreover, in light of the recent spike in energy costs, the company has imported electric ovens and is quickly switching to piped natural gas. 

 

Among other recent efforts, Jubilant FoodWorks has launched premium products with higher margins, reduced wastage, and implemented calibrated price increases to improve its gross margin, as per management. The management hopes the near-term pressure on margin lasts only for a couple of quarters.  

 

"On the (higher energy) cost... We've already passed on the pricing to the tune of 120 basis points to the customers and there are other initiatives in the works," a top company executive said, adding that Jubilant FoodWorks will not resort to knee-jerk price increases to improve margins.

 

For the March quarter, Jubilant FoodWorks reported a net profit of INR 425.79 million, down around 14% on year. Its revenue grew over 6% on year to INR 16.80 billion for the three months. For FY26, the company reported a net profit of INR 2.27 billion, up 17% on year. Its revenue rose 13% to INR 68.56 billion during the year. 

 

For Domino's India, same-store sales or like-for-like growth decelerated to 0.2% on year in Jan-Mar compared with 12.1% a year ago. For FY26, the metric stood at 6.5%, down from 7.5% in FY25. The management outlined two underlying factors: softer growth in the dine-in and takeaway channels and a drop in the average order value. 

 

"To gain market share, to make sure that we are building the business for the long term, and acquiring new customers, we have very consciously taken a call to reduce the minimum order value from INR 149 to INR 99. And as a result, there was a drop in the average ticket size," the management said.

 

Wednesday, shares of Jubilant FoodWorks closed 0.1% lower at INR 472.55 on the National Stock Exchange.  End

 

Edited by Saji George Titus

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd. by NSE Data & Analytics Ltd., a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt. Ltd.

 

Informist Media Tel +91 (22) 6985-4000

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2026. All rights reserved.