Global brokerage Citi has significantly revised its outlook on Jubilant FoodWorks, cutting the target price from ₹800 to ₹650 while maintaining a 'Buy' rating. According to reports from ET Now, this represents a steep downside of over 50% from current levels. The revision reflects concerns over moderation in growth and softer store-level performance, with the brokerage citing Q4FY26 results and slower same-store sales growth trajectory as key factors driving the downgrade.
Jubilant FoodWorks reported mixed results for the fourth quarter of FY26, with net profit declining 13.9% year-on-year to ₹42.6 crore from ₹49.5 crore in the previous year. As reported by ET Now, the company announced a dividend of ₹1.2 per share despite the earnings decline. Revenue growth remained steady at 6.4% YoY to ₹1,679.7 crore, compared to ₹1,579 crore in Q4FY25. The company's operational metrics showed improvement with EBITDA growing 11.5% YoY to ₹345 crore and EBITDA margin expanding to 20.5% from 19.6% in the previous year.
Despite the revenue growth, operational metrics revealed mixed performance indicators. According to ET Now reports, like-for-like revenue growth remained muted at 0.2% YoY for the quarter, indicating relatively stable store-level performance. However, order volumes showed healthy growth of 10.4% YoY, suggesting strong customer demand despite subdued same-store sales growth. For the full financial year FY26, Domino's India reported like-for-like revenue growth of 6.5%, highlighting steady recovery in consumer demand throughout the year.
Following the Q4 results, Citi has revised its estimates for FY27 and FY28, cutting revenue estimates by 4-5% and EBITDA estimates by 5-7%. As reported by ET Now, the India business valuation multiple has been cut to reflect the slower same-store sales growth trajectory. The brokerage now values the company at 30 times March 2028 estimated EV to EBITDA before accounting standard adjustments, down from the earlier valuation of 36 times. Despite the downgrade, Citi continues to back the long-term story of the food major.
