JUBLFOODNSEQ4FY26May 27, 2026

Jubilant Foodworks Limited

5,379words

72turns

10analyst exchanges

5executives

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Management on call

Shyam S. Bhartia

CHAIRMAN & DIRECTOR

Hari S. Bhartia

CO- CHAIRMAN & DIRECTOR

Sameer Khetarpal

CEO & MD

Suman Hegde

CHIEF FINANCIAL OFFICER

Apar

HEAD OF INVESTOR RELATIONS

Key numbers — 29 extracted

it with two subparts, that if I look at even the 2-year CAGR, there has been a deceleration from 9% to 6% from Q3 to Q4. And even if you bifurcated both for dine-in, which is anyway sitting on a lo

th two subparts, that if I look at even the 2-year CAGR, there has been a deceleration from 9% to 6% from Q3 to Q4. And even if you bifurcated both for dine-in, which is anyway sitting on a low base

28%

is anyway sitting on a low base, so that is not the case. And even delivery that I say, fell from 28% Y-o-Y growth to 10%. So if you could just give more clarity in detail about the sequential decele

10%

a low base, so that is not the case. And even delivery that I say, fell from 28% Y-o-Y growth to 10%. So if you could just give more clarity in detail about the sequential deceleration. I understand

ld just give more clarity in detail about the sequential deceleration. I understand the long term 5% to 7% but the sequential deceleration and both the subsegments? Sameer Khetarpal: Yes. I thin

t give more clarity in detail about the sequential deceleration. I understand the long term 5% to 7% but the sequential deceleration and both the subsegments? Sameer Khetarpal: Yes. I think, qua

Rs. 99

ompetitors on the minimum order value Jubilant FoodWorks Limited May 20, 2026 of Rs. 99. So just to recall, our minimum order value was Rs. 149. To gain market share to make sure that w

Rs. 149

bilant FoodWorks Limited May 20, 2026 of Rs. 99. So just to recall, our minimum order value was Rs. 149. To gain market share to make sure that we are building a business for longer term and acquire ne

Rs.149

d acquire new customers. We have very consciously taken a call to reduce minimum order value from Rs.149 to Rs. 99. And as a result, there was a drop in the average ticket size. And that is the subtext t

200 basis point

e discounting trends seen during this quarter? And to your 2-year goal of 5% to 7% growth and the 200 basis point margin improvement can they be achieved simultaneously? Sameer Khetarpal: Yes. I think a grea

50%

puts additional headwinds towards margins, but we believe in our business where almost more than 50% of the cost is fixed cost. Growth is the biggest driver of margins. And hence, I continue to rema

20%

ult, our capex per store has actually reduced year-on-year, and almost nearly 3 years in a row by 20%, right? So it has come down by 20%. And we are constantly calibrating that. And there are places

Guidance — 10 items

Nihal Jham

“I just had one question to it with two subparts, that if I look at even the 2-year CAGR, there has been a deceleration from 9% to 6% from Q3 to Q4.”

Suman Hegde

“That will be very store specific and discount specific variation.”

Dhruv Luthra

“So how should we think about SSSG and margins going forward?”

Suman Hegde

“Aditya, I think at this point in time it's very difficult for anybody to anticipate, right?”

Suman Hegde

“I can't really give you a guidance of that sort at this time.”

Aditya Vikram

“But if the company hasn't calibrated it yet, it might be a good idea if the company can come back and at least give some guidance on the margin front because every other competitor of yours have said the same.”

Aditya Vikram

“However, they have given some margin guidance, Jubilant FoodWorks Limited May 20, 2026 which is off from where they are, right?”

Aditya Vikram

“Jubilant, we expect transparency to be very high, considering how the company works and performs.”

Suman Hegde

“In the letter also we have said the long-term margin guidance on 200 bps holds and we'll try as quickly to get to that elevated number.”

Karan Taurani

“So, from a commodity standpoint, it will be largely equivalent for other QSR chains versus yours.”

Risks & concerns — 15 flagged

The real challenge to solve over there is the Dine-in and Takeaway sales.

— Sameer Khetarpal

Just to remind you, there is a drag of new businesses like Popeyes, Hong's and Dunkin.

— Sameer Khetarpal

That drag or dilution is actually ahead of the plan.

— Sameer Khetarpal

We're entering an inflationary environment; at least near-term inflation pressure is high.

— Sameer Khetarpal

The other big headwind, which has been coming our way and again, something we'll have to see how it materializes, is wage inflation.

— Suman Hegde

And then even the delivery mix headwind, right?

— Suman Hegde

We've had a 76% delivery mix, and that is another inflation headwind on the labor cost.

— Suman Hegde

And the way the story is panning out in terms of the war and everything along with the margin pressure.

— Aditya Vikram

But do you see margin pressure for next couple of quarters?

— Aditya Vikram

Aditya, I think at this point in time it's very difficult for anybody to anticipate, right?

— Suman Hegde

I think it's a long question, but we have said there's going to be short-term margin pressure.

— Suman Hegde

We're trying to be transparent on what's the kind of inflation margin pressure we're seeing on energy.

— Suman Hegde

And the pricing pressure, competition and everything.

— Aditya Vikram

Number three, I think there is an impact of LPG that we are calibrating and part of it, we have already mentioned in our newsletter, we have passed back to the consumer to tune of 1.2%.

— Sameer Khetarpal

Let's say, if this war were to continue for the next 3, 4 months and the inflation pressure is very high on LPG as a commodity.

— Karan Taurani

Q&A — 10 exchanges

Good evening, Sameer and team. You have highlighted in detail about the like-for-like performance. I just had one question to it with two subparts, that if I look at even the 2-year CAGR, there has been a deceleration from 9% to 6% from Q3 to Q4. And even if you bifurcated both for dine-in, which is anyway sitting on a low base, so that is not the case. And even delivery that I say, fell from 28% Y-o-Y growth to 10%. So if you could just give more clarity in detail about the sequential deceleration. I understand the long term 5% to 7% but the sequential deceleration and both the subsegments?

Sameer Khetarpal

Yes. I think, quarter-on-quarter is more noise, Nihal, right? Therefore, what we should look at is a full annual number, which actually for 2 years have been closer to 7%, right? So I think the double-click on dine-in is more important, right? And I think Delivery continues to grow strong, right? That's number one. That is our strength. We continue to have very strong operating metrics. We continue to see strong like-for-like growth. There are two underlying headwinds, which are there, which we've called out in dine-in takeaway. And second was the average order volume drop. The average order v

Team, first of all, I must compliment you on the shareholders letter. It was extremely nicely done. I just had two questions. First, Sameer, on this the outlook as we speak. You have cited that there are some near-term headwinds. There is competition that has changed. I wanted to understand how do you look at store additions in this context and whether what is the pace that you would be more comfortable with as we go forward would be the first question, and I'll come later.

Sameer Khetarpal

Avi, I think, if I just cut the noise from all what's happening, right, there is one truth that Domino's has gained share. It has gained share in the category. It has gained share in the QSR space. And we have a separate panel of 50,000 customers run by Nielsen. They are also indicating that we have gained share, and we have gained share materially in pizza as a category. So this allows us to expand more aggressively. This allows us to penetrate more and invest more in brand building, right? So from a store addition standpoint, I also check how the new stores that we have opened are doing. So

So we are constantly calibrating our store format, store model. And as a result, our capex per store has actually reduced year-on-year, and almost nearly 3 years in a row by 20%, right? So it has come down by 20%. And we are constantly calibrating that. And there are places where, in fact, we also realize that we need to add more seats. We are also doing that. So that's a constant exercise we have in the company.

Avi Mehta

Got it, sir. And just a follow-up on some bookkeeping questions and particularly on the gross margin. You've seen a very healthy sequential margin expansion at the gross margin side. And the drivers of it seem to be more stable and sustainable. Does that mean that we should kind of look at the 75.5% as the more steady-state run rate as we go forward? That was the first part. And the second part is, if you could also give us just what is the inflation levels that we are looking at in the input cost so that you can better understand the near-term margin pressures? That's all from my side. So Avi

Yes. Thanks for taking my question. So my first question is, so through some of our channel checks, we saw that you took price increases in April, which have been rolled back. So could you walk us through what you observed during the period that led to the rollback?

Sameer Khetarpal

So there has been no price-increase, which has been rolled back in April or anything. I think our price increases are very calibrated after 14 to 16 weeks of strong experimentation. I can't recall something that has been rolled back. No, We haven't rolled back anything. Is any specific instance, which makes you say that Dhruv? Yes. So some of my order history in April, the garlic bread stick a Rs. 10 price reduction I saw in May, versus my order in April. That will be very store specific and discount specific variation. We do a lot of this recalibration of prices. At an overall level there's n

So the optimism doesn't say, but the numbers are saying something else. And the way the story is panning out in terms of the war and everything along with the margin pressure. If I see your results this time around, right, the cost of goods purchased has slowed down drastically from Q3 to Q4. I just want to know if that is sustainable, because I am assuming Jan-Feb would have been very good for you in terms of the raw material inflation. However, from March onwards, it would have started giving you jitters, right? So, do you see similar trajectory in the months of April and May as well?

Sameer Khetarpal

Actually, gross margin is sustainable. I think we answered that before. I think your assumptions are incorrect when you say Jan, Feb and March, I don't know where you have the data from. At least in our P&L, it doesn't say that. Okay. And in terms of the margin, right? So we already read the shareholders letter that there would be short-term margin pressures. So are you seeing, I understand that one of the aspect of this is war and how the global economy pans out in terms of the energy cost and everything. But do you see margin pressure for next couple of quarters? Or just one or two quarters

Hi, thanks for taking my question pertaining to the cost inflation, right? So, from a commodity standpoint, it will be largely equivalent for other QSR chains versus yours. But from an LPG perspective, you've got a significantly higher exposure towards LPG basis Pizza category. And second, of course, is the employee cost as well, right, you have got your own delivery fleet. You run your own fleet, which means that the inflation, wage inflation costs, again, the petrol cost will also be hitting Jubilant FoodWorks Limited May 20, 2026 So, from that context, what is the kind of negative impact on

Sameer Khetarpal

Actually, no. And Suman can add. Firstly, like-for-like growth will help. Second is, the large part of our fleet is actually electric right? I think, therefore, we believe we have an advantage versus the rest of the market. Number three, I think there is an impact of LPG that we are calibrating and part of it, we have already mentioned in our newsletter, we have passed back to the consumer to tune of 1.2%. And what is the potential for moving these LPG-based outlets towards electric. I mean what percentage of the outage currently would have gone to electric or what is the kind of opex of runni

I just had a simple question. I think during the World Cup final day, they suggested that our systems were down for 6 hours, maybe in the second half of the day, which impacted the sales to an extent. My questions are, what is the probable impact incurring the channel sector through. And sir, what steps are we taking that such instances do not remain in the future? Thank you.

Sameer Khetarpal

Firstly, the information is incorrect. The systems were not down for 6 hours. The systems were not down. There was a minor downtime on our app, but rest of the systems were working and we recovered very quickly. So, there was not even like a notable impact that is noteworthy of calling out over there. And systems are very stable. So don't worry. Okay. Thank you.

Yes, just one follow-up. Just one follow-up on the market share that you mentioned that as per the Nielsen panel, you've gained market share both on Dine-in and Delivery. The only data point, let's say we track is that if we look at aggregators, which is say sort of the larger QSR basket, but this is sort of the first quarter where the divergence in growth has been this much versus, say, Domino's and the aggregator. So just your comments on that.

Sameer Khetarpal

So, I think, firstly, the data that we track is only for Delivery, right the most accurate data available through consumer research. So, I was referring to that. And I think when I was saying that, among the 30-odd players that we track, we have gained share among that. Those are largely QSRs which will go to almost like 0.3%, 0.4% of market share. So, I was mentioning against that. So, you are right, the aggregators have grown faster than the delivery of Domino's, that bit I agree, which would only indicate that the QSR as a basket has not grown as fast. And therefore, the aggregators are get

I just wanted to clarify on the gross margin bit a little bit. See, the reason why the confusion stems from is we have seen almost a 5% realization decline, which means that the underlying cost of goods has essentially reduced. Does that mean that the expansion has more to do with the move towards Rs. 99? If you could just throw some light on that, please? on how do you reconcile the decline in realizations with the expansion in gross margin? Or is that method also inaccurate?

Sameer Khetarpal

So can you just maybe explain when you say expansion on gross margin. No, no. The gross margin has gone up 100 basis points from 74.5% to 75.5%. And your realizations have gone down by 5 percentage points, which means that the cost of materials have to go down to almost 8%, 9% give or take percentage points. So, I'm just trying to understand that how is this kind of reconciling? Is it because the move towards the cheaper or the lower price point is actually towards better gross margin products? Because the comment that you made about premium products, mix improvement should have also held real

Thank you, everyone, once again for joining the call and for listening patiently. For any other further questions, reach out to the Investor Relations team. You will find the recording and transcript of this call on the Investor Relations page of our website very soon. Thank you, and have a very good evening.

Management

Speaking time

Sameer Khetarpal

Moderator

Avi Mehta

Suman Hegde

Aditya Vikram

Karan Taurani

Nihal Jham

Dhruv Luthra

Apar

Vishal Gutka

Opening remarks

Apar

Thank you, Neerav. Welcome to Jubilant FoodWorks Quarter 4 and FY'26 earnings call for investors and analysts. We are joined today by senior members of the management team including our Chairman, Mr. Shyam S. Bhartia, Our Co-Chairman, Mr. Hari S. Bhartia; our CEO and MD, Mr. Sameer Khetarpal; and our CFO, Ms. Suman Hegde. Please note that the earnings call is scheduled for a duration of 45 minutes, and we will commence directly with the Q&A session. Along with the financial results, we have also released a letter to our shareholders in which we have shared our outlook and have already answered certain pertinent questions about the performance. Hence, the participants are requested to limit the scope of discussion to only strategic questions and count of questions to only two. If you wish to seek any accounting clarification, kindly get in touch with the Investor Relations team later. A cautionary note before we move ahead, some of these statements made on today's call will be forward-l

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