Jubilant FoodWorks Limited (JFL) is a leading multi-brand, food-tech company operating in high-growth emerging markets. Incorporated in 1995, JFL has established itself as a dominant player in the Quick Service Restaurant (QSR) sector, particularly in India where it is 1.7 times the size of its next largest competitor. The company's purpose is to "Serve Joy" by focusing on a combination of delicious food, operational excellence, and breakthrough technology. JFL's operations are supported by a formidable supply chain, including over 20 food parks and distribution centers and a fleet of more than 300 multi-temperature logistics vehicles.

The company manages a diverse portfolio of globally recognized and homegrown brands. It holds the franchise rights for Domino’s, the American chicken brand Popeyes, and Dunkin’ in various markets. Additionally, it has developed its own brands, including Hong’s Kitchen, an Indo-Chinese QSR concept in India, and COFFY, a café brand in Turkey. As of December 31, 2025, JFL's extensive network comprises 3,594 stores across six countries: India, Turkey, Bangladesh, Sri Lanka, Azerbaijan, and Georgia, serving a combined population that represents approximately 25% of the world. This strategic geographic footprint positions JFL to capitalize on favorable demographic and economic trends in these regions.

Official Website: http://www.jubilantfoodworks.com/

• Consolidated Performance (Q3FY26 vs Q3FY25):

• Revenue: Grew by 13.3% year-over-year (YoY) to Rs. 24,372 million.

• Operating EBITDA: Increased by 20.0% YoY to Rs. 4,823 million, with the margin expanding by 110 basis points (bps) to 19.8%.

• Profit After Tax (PAT): PAT from continued operations (before exceptional items) saw a significant surge of 93.9% YoY to Rs. 981 million. The corresponding margin improved by 167 bps to 4.0%.

• Standalone India Performance (Q3FY26 vs Q3FY25):

• Revenue: Grew by 11.8% YoY to Rs. 18,015 million.

• Operating EBITDA: Increased by 18.1% YoY to Rs. 3,694 million, with the margin expanding by 109 bps to 20.5%.

• Profit After Tax (PAT): PAT from continued operations (before exceptional items) grew by 27.4% YoY to Rs. 793 million, with the margin improving by 54 bps to 4.4%.

• Key Operational Metrics (India):

• Domino's LFL Growth: Recorded a 5.0% Like-for-Like (LFL) growth, marking eight consecutive quarters of positive performance. LFL is a key metric defined as YoY revenue growth for mature stores opened before the previous financial year.

• Domino's Order Growth: Overall order growth was strong at 9.6% YoY.

• Delivery Channel Strength: The delivery channel revenue grew by 16.0% YoY and now constitutes 74.9% of the business mix in India.

• International Performance:

• Turkey: Revenue stood at Rs. 5,801 million. Inflation-adjusted LFL growth was 6.3%.

• Bangladesh & Sri Lanka: Both markets demonstrated robust topline growth, with revenues growing 65.9% and 26.6% YoY in INR terms, respectively.

The company delivered a strong quarter with double-digit revenue growth, significant margin expansion driven by operational leverage, and impressive bottom-line growth across both its consolidated and standalone Indian operations.

• Integrated Food-Tech Model:

• JFL positions itself as a "Food-Tech Company," not just a QSR chain. This is evident in its focus on a friction-free app experience, a loyalty program, and the use of location AI.

• The company's proprietary apps (Domino’s, Popeyes, Hong’s) are a core asset, with Monthly Active Users (MAUs) reaching 17.0 million (up 28% YoY) and Monthly Transacting Users (MTUs) at 5.7 million (up 21% YoY).

• Robust and Scaled Supply Chain:

• A key competitive advantage is its extensive, vertically integrated supply chain. This includes over 20 food parks, a fleet of 300+ multi-temperature trucks, and a network that serves over 600 cities.

• This infrastructure ensures consistent quality, cost efficiency, and the ability to scale rapidly into new territories.

• Diverse Multi-Brand Portfolio:

• While Domino's is the flagship brand, JFL operates a portfolio that caters to different consumer preferences and dayparts.

• This includes the globally popular Popeyes (fried chicken), Dunkin' (coffee and baked goods), and its own brands Hong’s Kitchen (Indo-Chinese) and COFFY (café), diversifying revenue streams.

Jubilant's distinctiveness lies in its powerful combination of a technology-first approach to customer engagement, a deeply entrenched supply chain that creates a high barrier to entry, and a strategic multi-brand portfolio.

• High-Growth Emerging Markets:

• JFL operates in markets with significant growth potential. The India Chained QSR market is projected to grow from $3.2 billion in 2024 to $5.4 billion by 2028.

• There is substantial headroom for growth, as the share of chained QSRs in India is only 9%, compared to 30% in China and 40% in the USA.

• Favorable Demographics:

• The median age in the markets JFL operates in is under 35. This young population, particularly GenZ and Gen Alpha, shows a strong preference for QSRs, creating a long-term customer base.

• Economic Tailwinds:

• A rising middle-income class and increasing discretionary spending are key drivers. In India, discretionary spending share is 54%, with room to grow towards levels seen in China (70%).

• Consumers are increasingly gravitating towards branded and organized chains for trusted quality and hygiene.

• Digital Adoption:

• Rapid growth in smartphone penetration and the adoption of online commerce are transforming consumer behavior. While online commerce penetration in India is at 17%, it is expected to grow, mirroring the trend in markets like China (67%).

The company is well-positioned within a favorable industry landscape characterized by strong market growth projections, supportive demographic trends, rising disposable incomes, and increasing digital adoption.

• Aggressive Network Expansion:

• The company added a net of 114 stores in Q3FY26, bringing the global total to 3,594. Over the last 12 months, 334 net new stores were added.

• In India, the network expanded by 78 stores in the quarter to reach 2,528. Domino's expanded its presence to 11 new cities, now covering 511 cities.

• The international segment also grew, with 33 net stores added in Turkey and others.

• Same-Store and Order Growth:

• Domino's India delivered a positive LFL of 5.0% and a strong order growth of 9.6% YoY, indicating healthy demand from its existing store base.

• Popeyes in India recorded high double-digit LFL growth, demonstrating strong traction for the new brand.

• Channel-Specific Growth:

• The delivery channel in India remains a primary growth engine, with revenue increasing by 16.0% YoY. This channel's share of the mix has increased to 74.9%.

• International Market Momentum:

• Bangladesh and Sri Lanka are delivering consistent high-growth performance, with revenue up 65.9% and 26.6% YoY, respectively, contributing materially to the consolidated topline.

Growth is multifaceted, stemming from rapid and continuous store network expansion, positive like-for-like sales in mature brands, strong performance from emerging brands, and robust momentum in international markets.

• Scaling of Emerging Brands:

• Popeyes, with only 73 stores in India, has a significant runway for growth, especially given its high double-digit LFL performance.

• Dunkin’, Hong’s Kitchen, and the international brand COFFY represent further opportunities to capture different market segments and increase overall market share.

• Deepening Market Penetration:

• Despite its large network, the company continues to see opportunities to enter new cities in India (11 new cities in Q3 alone) and increase store density in existing ones.

• The low penetration of chained QSRs in India (9%) provides a long-term structural growth opportunity.

• Digital Monetization:

• The introduction of monetization through ads and rewards on the post-order screen presents a new, high-margin revenue stream. This leverages the large captive audience on its digital platforms.

• Operational Leverage:

• As the company achieves greater scale and store productivity, there is a clear opportunity for continued margin expansion through operating leverage, as demonstrated in the current quarter's results.

The primary opportunities for the company lie in scaling its newer, high-growth brands, continuing its disciplined penetration of the under-served Indian market, and capitalizing on its digital ecosystem for new revenue streams.

• Strategic Capital Allocation:

• The company is actively managing its capital structure. Finance cost as a percentage of revenue in India was reduced by approximately 37 bps YoY.

• Internationally, the refinancing of debt in Turkey from the Turkish Lira to the Euro is a prudent move to mitigate currency and interest rate risk.

• Supply Chain Investment Cycle:

• A key disclosure is that "Supply Chain capex peaked." This indicates that major investments in building backend capacity are largely complete.

• The capacity is now in place to support medium-term growth, which may lead to lower capital intensity and improved free cash flow generation in the future.

• New Capacity Addition:

• The Mumbai commissary is set to become operational by the end of Q4FY26, further strengthening the supply chain infrastructure to support the growing store network in the region.

The company has strategically peaked its supply chain capex, building sufficient capacity for medium-term growth, while actively optimizing its balance sheet and preparing to operationalize new assets.

• Consolidated Margin Expansion:

• Reported EBITDA margin expanded by 110 bps YoY to 19.8%.

• PAT margin (before exceptional items) grew by 167 bps YoY to 4.0%, reflecting strong operating leverage.

• Standalone (India) Margin Performance:

• Gross margin expanded by 52 bps sequentially (vs. Q2FY26), indicating better cost management or pricing power.

• EBITDA margin (Pre-Ind AS 116) expanded significantly by 89 bps YoY and 121 bps sequentially to 13.3%. This was attributed to portfolio-wide gross margin improvement, gains in store productivity, and operating leverage.

• Profitability of New Ventures:

• The drag on EBITDA from Emerging Business Units (EBUs) like Popeyes and Hong's Kitchen is declining sequentially. This is a positive indicator that these new ventures are on a path to profitability and will soon contribute positively to margins.

The company is on a guided trajectory of margin expansion, successfully leveraging store productivity and cost efficiencies to improve profitability at both the gross and operating levels.

• Market Dominance:

• The company explicitly states its leadership position as the "Largest QSR player for 30yrs."

• It quantifies this leadership by stating it is "1.7x the 2nd largest player," highlighting a significant scale advantage over its nearest competitor.

The company asserts a clear and dominant leadership position in its core market, built over three decades and maintained by a significant scale advantage.

• Macroeconomic Headwinds:

• Operating in hyperinflationary economies like Turkey presents a significant risk. The financial statements require inflation adjustments (IAS 29), and managing costs and pricing in such an environment is challenging.

• Execution Risk:

• The company is pursuing an aggressive growth strategy with rapid store expansion (114 net new stores in one quarter) and scaling multiple new brands simultaneously. This introduces execution risks related to site selection, maintaining service quality, and brand consistency.

• Dependence on Discretionary Spending:

• The QSR industry is highly dependent on consumer discretionary spending. Any economic slowdown or downturn in consumer sentiment could negatively impact revenue and profitability.

While not explicitly stated, inherent risks include managing operations in volatile macroeconomic environments like Turkey, potential execution challenges tied to rapid expansion, and the cyclical nature of consumer discretionary spending.

• Continuous Menu Innovation:

• Domino's India: Launched "Cheese Lava Pull Apart" to drive consumer interest.

• Popeyes India: Executed a pan-India rollout of "7 Flavor Burst Burgers."

• International: The Turkey business introduced several new items, including the İkonix Pizza, Burger Pizza, and various seasonal beverages, to maintain customer engagement.

• Digital User Growth:

• The company's own apps are seeing strong adoption, with Monthly Active Users (MAUs) growing 28% YoY to 17.0 million and Monthly Transacting Users (MTUs) growing 21% YoY to 5.7 million.

• Sustainability and ESG Initiatives:

• Under its ‘Jubilant for All’ agenda, the company reports that ~57% of its delivery fleet is electric (EV).

• It has eliminated single-use plastics and uses 100% recyclable pizza boxes.

• Sourcing initiatives include 100% farm traceability for key ingredients and empowering dairy farmers.

The company is actively driving growth through consistent product innovation, successfully expanding its digital user base, and maintaining a clear focus on its sustainability and ESG commitments.