Jubilant FoodWorks has maintained its long-term margin guidance of 200 basis points improvement, even as it navigates near-term inflationary pressures from energy and labor costs. The company shared this outlook during its Q4FY26 and FY26 analyst and investor conference call held on May 20, 2026. Management emphasized that while growth remains the priority, structural initiatives and productivity improvements will drive margin expansion over time.

CapEx and Store Expansion

Management highlighted that capital expenditure per store has decreased by 20% year-on-year for the past three years. This reduction is attributed to constant calibration of store formats and kitchen remodeling initiatives. On the expansion front, the company plans to open approximately 230 to 250 new restaurants in the current year. The focus is shifting towards smaller delivery carry-out stores measuring 600–700 sq ft, primarily targeting metro markets, to optimize efficiency and returns.

Margin Outlook and Inflation Headwinds

While the long-term margin guidance of 200 basis points improvement stands, the company flagged short-term margin pressure stemming from inflation across multiple cost heads. Energy inflation is expected to have an impact of 100–120 basis points due to rising costs of LPG and PNG. Labor cost pressures are arising from minimum wage increases in 11 states, labor code compliance, and changes in delivery mix. The company acknowledged it cannot quantify the exact duration of these near-term headwinds but stated that pricing actions and efficiency measures are being calibrated to mitigate the impact.

Growth Guidance

Management reiterated its long-term annual like-for-like growth target of 5% to 7%. The company expects Q1 FY26 growth to be better than Q4 FY26, signaling improving momentum in the near term. To drive volume and market share, the company reduced the minimum order value from ₹149 to ₹99, which impacted average ticket size but is aimed at acquiring new customers for long-term growth.

Key Guidance Summary

The following table summarizes the key guidance metrics shared during the concall:

The audio recording of the conference call has been hosted on the company's official platform in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. Stakeholders can access the recording through the Investor Relations section of the company's website. The filing was signed by Mona Aggarwal, Company Secretary and Compliance Officer.

Jubilant FoodWorks Limited has disclosed that it received an order from the Haryana State Pollution Control Board (HSPCB) directing the payment of environmental compensation. The order, bearing number I/290244/2026, was issued on May 12, 2026, and pertains to a store located in Ballabgarh, Faridabad, Haryana.

Order Details and Violations

The regulatory authority penalized the company for operating the store without prior Consent to Operate (CTO) regarding Air and Water. The violation concerns the Water (Prevention and Control of Pollution) Act, 1974, and the Air (Prevention and Control of Pollution) Act, 1981. The communication was received by the company on May 21, 2026, at 10:17 Hrs (IST).

Financial Implications and Action Taken

The HSPCB directed Jubilant FoodWorks Limited to deposit ₹22,65,000 as environmental compensation within one month. The company confirmed that it has made the payment under protest in accordance with the prescribed procedure. It stated that it is currently contesting the order.

Impact Assessment

Regarding the consequences of this regulatory action, the company clarified that there is no material impact on its financials. Furthermore, it stated that there is no impact on the operations or other activities of the company. The relevant period for which the communication is applicable is June 2022.