Jubilant FoodWorks Q4 Results Review: Brokerages Bullish As Operating Costs Reduce

Jubilant FoodWorks Ltd. has reported its fourth-quarter results for FY25, drawing bullish reactions from leading brokerages. Goldman Sachs has highlighted a strong quarter across all fronts, while Citi has emphasised operational outperformance and market share gains.

The Domino's operator reported a 33.6% increase in revenue, reaching Rs 2,103 crore compared to Rs 1,574 crore in the same period last year. Ebitda rose by 24.7% to Rs 389 crore, up from Rs 312 crore. The Ebitda margin stood at 18.5%, slightly lower than the previous year's 19.8%. Net profit, however, saw a significant decline of 76.9%, falling to Rs 48 crore from Rs 207.5 crore.

Goldman Sachs noted the standalone results of Jubilant FoodWorks for the fourth quarter were strong and exceeded estimates. "Standalone Ebitda grew 20.2% year-on-year, and was 5.8% ahead of our estimates."

The beat was driven by lower than expected operating costs. The firm highlighted that Domino's India revenue grew 18.8% YoY, with order growth coming in much stronger at 24.6% YoY. "Domino's like-for-like growth came in at 12.1%, which was the second consecutive quarter of high LFL growth," Goldman Sachs added.

"Operating leverage from the high LFL growth helped lower other fixed overhead costs like rent and employee costs as a percentage of sales," the firm noted. Goldman Sachs has increased its FY26-27 EPS estimates by approximately 3% to account for stronger-than-expected performance.

Citi reiterated its 'buy' rating for Jubilant FoodWorks, emphasising the company's operational outperformance despite no improvement in consumer sentiment. "LFL of 12.1% (order growth 24.6%) with delivery LFL of 21.9% (delivery order growth 33.5%) was led by multiple initiatives," Citi stated. The firm highlighted that while dine-in sales remained flat year-on-year, recent initiatives are likely to sustain overall LFL outperformance compared to other QSR players.

Citi also noted management's guidance for adding 250 Domino’s outlets and 30 Popeyes stores in India for FY26. "On profitability, management expects to improve Ebitda margin by at least 200 basis points over the next three years," Citi added.

The firm has increased its FY26-27 Ebitda estimates by 0-5% and rolled forward its Sum of the Parts to March 2027. "JUBI is our preferred pick within our QSR coverage led by LFL outperformance vs other QSR players and growth opportunity for Popeyes," Citi reiterated.