Jubilant FoodWorks’s profit nearly triples in the September quarter

Jubilant FoodWorks Ltd, which operates Domino’s and other quick service restaurant (QSR) chains in India and abroad, reported an almost three-fold year-on-year increase in profits in the September quarter on strong operating performance and lower interest costs.

Consolidated net profit increased by 192.5% on an annual basis ₹194.6 crore revenue generated ₹2,340.2 crore, up 19.7% year-on-year. Independent (India) income ₹1,698.7 crore, up 15.8% year-on-year.

Consolidated earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 18.5% on an annual basis, achieving a margin of 13.9%. In the India business, EBITDA increased by 15.9% with a margin of 19.4%.

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The company said gross margins expanded sequentially across its portfolio, supported by higher store productivity, operating leverage and cost efficiency.

Domino’s India, the company’s flagship brand, reported a 15.5% increase in revenue, driven by order growth of 14.8% and comparable sales growth of 9.1%. The delivery channel remained a key growth engine, with revenue rising 21.6% year-on-year.

The company is accelerating efforts to revive in-store sales as dining channel revenue remains flat.

“Food-related or in-store work is largely ongoing, e.g. ₹The 99 value presentations we launch in dining venues between 11.00 and 15.00 give us pleasure. We have extended this to delivery approx. ₹150 during lunch hours. Long story short, there are various initiatives in the works to increase internal sales,” said chief executive and managing director Sameer Khetarpal during Jubilant’s post-earnings call on Thursday.

Jubilant FoodWorks added 88 new stores during the quarter, taking its India network to 2,450 outlets. Of these, 81 were Domino’s stores, expanding into 16 new cities and increasing the brand’s footprint to 500 cities; Four new Popeyes stores were opened in Mumbai.

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Jubilant FoodWorks operates Domino’s, Popeyes and Dunkin’ Donuts in India. It also owns and operates homegrown restaurant brands Hong’s Kitchen and Ekdum!. It also operates restaurants in Sri Lanka, Bangladesh and Nepal.

At the group level, it has a total network of 3,480 stores, including 3,179 Domino’s stores in India and abroad.

The company reported year-on-year revenue growth during the quarter in international markets including Türkiye, Sri Lanka and Bangladesh.

Fast food chains had a mixed quarter. For example, Westlife Foodworld, which operates McDonald’s restaurants in Southern and Western India, reported a “soft” performance in the September quarter, with weak consumption trends and limited signs of recovery.

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Revenues increased by 3.9 percent annually ₹642 crore, driven by ongoing network expansion, according to an ICICI Securities report dated November 4.

HT Media Ltd, which publishes Mint, and the backers of Jubilant Foodworks are closely related. However, neither promoter has cross-holdings.