Shares of Jubilant FoodWorks, operator of the Domino's Pizza chain in India, fell as much as 8.04% to hit an intraday low of ₹434.65 on the BSE, marking its biggest single-day loss since March 16, 2020. On the National Stock Exchange (NSE), the stock dropped as much as 8.11% to ₹434.20 following the release of March quarter earnings. As of 10:43 am, the stock was trading 7% lower at ₹439, significantly underperforming the NIFTY Largemidcap 250 index which was up 0.34%. The stock decline came despite the company reporting strong quarterly results with a 67% profit jump.
Jubilant FoodWorks reported a consolidated net profit of ₹82.42 crore in the January-March quarter, marking an increase of 67% from ₹49.33 crore in the year-ago period. The company's revenue from operations rose 19% to ₹2,499.46 crore compared with ₹2,095.02 crore in the same period last year. The Delhi-based company, which also operates chains like Popeyes and Hong's Kitchen, achieved stable operational performance with EBITDA jumping 24% to ₹485 crore and EBITDA margin rising 70 basis points to 19.4%. For the full financial year 2026, the company's consolidated net profit reached ₹444.24 crore against ₹217.12 crore in FY25, while consolidated revenue from operations stood at ₹9,512.51 crore compared to ₹8,104.49 crore in FY25.
The stock came under selling pressure after Jubilant FoodWorks disclosed in a letter to shareholders that same store sales growth (like-for-like growth) for Domino's in financial year 2026 declined to 6.5% from 7.5% in the previous financial year. The company attributed this decline to affordability-led interventions, including lowering the free delivery threshold to ₹99, targeted cashbacks, and zero packaging charges in select markets. As reported by the company, dine-in and takeaway growth was relatively softer during the quarter, impacting overall like-for-like growth. The India business delivered 13% growth in revenue from operations in FY26, with international businesses continuing their strong momentum across markets.
During March, select markets experienced temporary LPG supply constraints, which had a limited and localised impact on operations, translating into an estimated 30-40 basis points impact on Q4 FY26 like-for-like growth of Domino's India. The company's total expenses in the period under review were higher at ₹2,401.46 crore compared to ₹2,028.97 crore a year ago. Looking ahead, Jubilant FoodWorks stated its focus remains on delivering sustainable 5-7% LFL growth, with key priorities including continuing to drive customer value and volume growth and winning on occasions to revive dine-in and takeaway growth. The board of directors has recommended a dividend of ₹1.2 per equity share of ₹2 each for the financial year 2025-26, subject to shareholders' approval at the ensuing annual general meeting.
Leading investment firm Jefferies noted that fourth quarter results provided limited triggers for rerating and flat same store sales growth and weak margin commentary suggest that a turnaround may take more time. The investment firm added that the management is opting for calibrated price hikes to protect growth and has cut its EBITDA estimate by 10-12%. Despite the strong profit growth, the market reaction reflects investor concerns about the company's ability to sustain growth momentum in the competitive quick-service restaurant sector. However, the company's management expressed confidence for FY27, stating that the opportunity for organised QSR in India remains significant and multi-decadal, with Jubilant FoodWorks uniquely positioned to capitalise through its brands, technology, supply chain, and execution capabilities.
