Jubilant Foodworks Ltd.'s fourth quarter earnings have failed to cheer brokerages again, and the shares are under pressure during Wenesday's trade. The Dominos pizza chain operator saw its net profit slip to 14% year-on-year, for the financial results regarding the fourth quarter of fiscal 2025-26.
The stock fell as much as 8% in early trade.
The company declared a divided of Rs 1.2 per share share. Revenue went up 6% year-on-year to Rs 1,680 crore from Rs 1,579 crore in the previous fiscal. The company net added 61 stores across all its brands in the fourth quarter of fiscal 2026. Jubilant Foodworks' total India store count was at 2,562.
Jubilant FoodWorks Q4FY26 Highlights (YoY)
- Net Profit Down 13.9% At Rs. 42.6 crore Vs Rs. 49.5 crore
- Revenue Up 6.4% At Rs. 1,679.7 crore Vs Rs. 1,579 crore
- Ebitda Up 11.5% At Rs. 345 crore Vs Rs. 309 crore
- Ebitda Margin At 20.5% Vs 19.6%
Brokerages remained divided on Jubilant FoodWorks after its Q4 earnings, with concerns around weak same-store sales growth, rising input costs and sluggish earnings recovery overshadowing an EBITDA beat.
Morgan Stanley maintained its Equal-weight rating with a target price of Rs 486, calling the quarter weak and flagging near-term margin pressures from higher LPG, labour and commodity costs. Jefferies retained its Buy call but sharply cut its target price to Rs 600 from Rs 850, saying the company's results offered little reason to revisit the stock aggressively. Meanwhile, Macquarie Group maintained an Underperform rating with a target price of Rs 390.
Jefferies on Jubilant FoodWorks
- Jefferies maintains a Buy rating on Jubilant FoodWorks but has cut its target price to Rs 600 from Rs 850.
- Still waiting for pick-up in earnings growth, and consumer tech platforms becoming preferred ways for investors to play the consumption theme.
- Jubilant's Q4 provided no reason to revisit the name.
- Flat same-store sales growth and cautious commentary on near-term margins suggest that investors may need to wait longer for a meaningful recovery.
- Management is pursuing calibrated price hikes, which Jefferies views as a prudent strategy, but this has led to a 10–12% reduction in EBITDA estimates based on the company's exit trajectory.
- While Jefferies retains its Buy rating, it believes further upside will depend on a clear acceleration in earnings growth.
Morgan Stanley on Jubilant FoodWorks
- Morgan Stanley maintains an Equal-weight rating on Jubilant FoodWorks with a target price of Rs 486.
- The brokerage described Q4 as a weak quarter and expects near-term headwinds to persist.
- Margins are likely to remain under pressure due to inflation in LPG, labour and commodity costs.
- Domino's has implemented a price hike of around 1.2% so far to offset some of these cost pressures.
- Morgan Stanley expects Q1 same-store sales growth to improve sequentially from Q4, with like-for-like growth continuing to strengthen through FY27.
Macquarie on Jubilant FoodWorks
- Macquarie maintains an Underperform rating on Jubilant FoodWorks with a target price of Rs 390.
- The brokerage noted that Q4 EBITDA beat expectations, supported by healthy margins in the India business and strong international performance.
- However, it remains cautious on the near-term outlook.
- Macquarie is concerned that a high base could make it difficult for Jubilant FoodWorks to achieve its targeted 5–7% like-for-like sales growth over the next few quarters.
ALSO READ: Pizza Gone Cold: Jubilant Foodworks' Target Price Cut By 30% As Growth Fails To Deliver
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