Synopsis:
Jubilant FoodWorks shares gained over 4% after reporting strong Q1FY26 results, with double-digit revenue and profit growth both QoQ and YoY. Robust order momentum, digital gains, and network expansion lifted performance. Brokerages remained mixed, with targets implying significant potential upside or downside from the current price.
quick service restaurant stock that operates the master franchises for Domino’s Pizza, Dunkin’ Donuts, and Popeyes in India rose in Thursday’s trade after reporting robust Q1FY26 earnings.
Double-digit sales growth, improved profitability, and strong order momentum across brands drove sequential and annual gains in revenue and net profit, lifting investor sentiment.
Jubilant FoodWorks Limited, with a market capitalisation of Rs. 41,999.15 crore, opened at Rs. 657.85 against the previous close of Rs. 639.90 and hit an intraday high of Rs. 670.65, marking a rise of 4.81 percent.
What’s the News?
Quarter-on-Quarter Performance: In Q1FY26, revenue rose to Rs. 2,261 crore from Rs. 2,103 crore in Q4FY25, an increase of 7.51 percent. Operating profit improved 12.60 percent to Rs. 438 crore from Rs. 389 crore.
Profit before tax surged 82.61 percent to Rs. 126 crore from Rs. 69 crore, while net profit jumped 91.84 percent to Rs. 94 crore from Rs. 49 crore. Operating profit margin stood at 19 percent, EBITDA margin at 19.4 percent, and PAT margin at 4.3 percent.
Year-on-Year Performance: Compared to Q1FY25, revenue grew 17.01 percent from Rs. 1,933 crore to 2,261 crore. Operating profit increased 15.26 percent from Rs. 380 crore to 438 crore. Profit before tax advanced 63.64 percent from Rs. 77 crore to 126 crore, while net profit rose 62.07 percent from Rs. 58 crore to 94 crore in the same quarter last year.
Brokerage’s Reaction
Macquarie has maintained an Underperform rating on Jubilant Foodworks with a target price of Rs. 545, implying a potential downside of 17.2 percent from today’s opening. The brokerage said Q1 results were largely in line, supported by strong Turkey performance, which helped offset slower-than-expected India margins. However, discounting-led like-for-like growth failed to improve EBITDA margin.
Jefferies has maintained a Buy rating with a target price of Rs. 1,000, indicating a potential upside of 52.0 percent from today’s opening price. It noted that delivery growth outpaced food aggregators and expects industry-leading same-store sales growth to continue after base normalisation from the December quarter.
Morgan Stanley has retained an Overweight rating with a target price of Rs. 781, implying a potential upside of 18.7 percent from today’s opening price. It said Q1 performance was broadly in line, with strong India growth driving an 18 percent revenue rise. The brokerage highlighted the company’s focus on market penetration over price hikes and expects healthy like-for-like growth with margins improving on the back of top-line expansion.
Also read: 768% Profit Growth: Chemical Stock Jumps 4% After Announcing Q1 Results
Operational Highlights
Domino’s India revenue rose 17.7 percent YoY, driven by 17.3 percent YoY order growth across all tiers. Like-for-like growth of 11.6 percent was led by delivery LFL growth of 20.1 percent YoY. Mature store average daily sales reached Rs. 85,396.
Group system sales stood at Rs. 26,715 million, including corporate and franchisee stores across brands and geographies. The company recorded its highest ever own app performance, with monthly active users at 14.7 million (up 21.5 percent YoY), app installs at 12.3 million (up 19.4 percent YoY), and loyalty base at 37 million. Pre-Ind-AS-116 EBITDA margin expanded by 42 bps YoY, while gross margin fell by 199 bps YoY due to higher investments in growth, customer acquisition, and delivery mix.
The store network as of June 30, 2025, totalled 3,387 outlets, comprising Domino’s (3,098), Popeyes (60), and Dunkin’ (29). Net additions over the past 12 months stood at 330 stores, with Domino’s contributing 265 and Popeyes 10. In the last three months, 71 stores were added, of which 67 were Domino’s.
About the Company
Jubilant FoodWorks Limited (JFL) is part of the Jubilant Bhartia Group and is one of India’s largest food service companies. It holds the master franchise rights for Domino’s Pizza and Dunkin’ Donuts, catering to different food market segments, and has added Popeyes to its portfolio. The company also launched Hong’s Kitchen in the Chinese cuisine segment.
Written by – Manan Gangwar
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