Jubilant Foodworks shares rose 3.25% to ₹508 following the company's strong Q1 FY27 results, demonstrating continued positive investor sentiment. The stock has shown consistent momentum, with previous gains of 2.44% to ₹503.55 on Friday morning, as reported by Business Standard. The company remains a constituent of the Nifty Midcap 150 index and continues to show positive market response to its consistent financial performance and operational improvements.
The company delivered robust financial results for the April-June quarter of FY27, with consolidated net profit increasing 6% year-on-year and 21.4% quarter-on-quarter to ₹100 crore in Q1 FY27. Revenue from operations increased 14.1% YoY and 2.8% QoQ to ₹2,569.7 crore. Profit before tax from continuing operations before exceptional items increased 9.7% YoY and 24.0% QoQ to ₹151.3 crore in Q1 FY27. Operating EBITDA increased 14.2% YoY and 3.9% QoQ to ₹503.9 crore, with EBITDA margin standing at 19.6%, compared with 19.6% in Q1 FY26 and 19.4% in Q4 FY26. Total operating expenditure increased 16.0% YoY to ₹1,354.2 crore, with personnel expenses rising 15.6% YoY to ₹430.8 crore and manufacturing expenses increasing 16.2% YoY to ₹923.4 crore.
Domino's India delivered strong performance with 2.5% like-for-like (LFL) growth in Q1 FY27, against 0.2% in the previous quarter, as reported by Business Standard. Domino's India's revenue grew 7.4% to ₹1,764.6 crore in the June quarter. The company's Domino's India store network reached 2,513 outlets after adding 58 net new stores during the quarter. Orders increased 6.5% and delivery revenue grew 12.1% YoY, demonstrating the brand's continued momentum. The management has introduced targeted offers and a sub-₹250 menu to bring customers back, with Q2 expected to show better LFL growth versus Q1. Popeyes continued its exceptional momentum with revenue growth of 97% to ₹70.3 crore and LFL growth of over 45% for the third consecutive quarter, demonstrating the brand's strong market penetration and customer loyalty. The company operates as the leading QSR chain with franchise rights for three global brands - Domino's, Popeyes, and two own-brands, Hong's Kitchen and COFFY. Management expects Popeyes to become a ₹1,000-crore profitable business over the next three to four years and plans to add another 35-40 stores.
DP Eurasia revenue increased 28.2% YoY to around ₹660 crore, while Domino's Bangladesh and Sri Lanka performed better, though Turkey and COFFY remained under pressure, as reported by The Financial Express. The company said DP Eurasia's reported profitability was affected by hyperinflation accounting, although its underlying operating performance remained healthy. Jubilant FoodWorks added 76 net new stores during Q1 FY27, taking the total number to 3,712 stores worldwide. The company has begun upgrading around 400 dine-in-heavy Domino's stores and introduced new propositions to improve value perception and store traffic. It also launched Chicken Maxxx, Ready-to-Drink Cold Coffee and Mousse during the quarter. The company contained the impact of inflationary pressures on standalone EBITDA margin to around 20 basis points YoY, compared with an earlier expectation of nearly 200 basis points, supported by selective pricing, productivity improvements, supply-chain efficiencies, waste reduction and greater localisation.
Jefferies has retained its 'Buy' rating on Jubilant FoodWorks and increased the target price to ₹650 from ₹600 earlier, implying nearly 34% upside based on current market price, as reported by The Financial Express. The brokerage believes the current weakness could give way to better growth as demand improves, store upgrades take effect and newer growth engines scale up. For Q1 FY27, JUBI reported 9% YoY standalone revenue growth, with Domino's LFL growth improving to 2.5% from 0.2% in Q4 FY26 and Popeyes delivering strong 97% revenue growth with 45% LFL growth. Management expects Q2 FY27 to be better than Q1 FY27, with the trajectory further improving in H2 FY27. Jefferies expects near-term margin pressure to continue because of higher prices of key inputs such as cheese and oil, though the medium-term target of 200 basis points adjusted EBITDA margin expansion remains unchanged.
