Jubilant FoodWorks Limited , a major player in the Indian food service industry, has announced a significant update regarding its dividend distribution for the financial year 2024-25. The company has decided to withhold dividend payments for shareholders who have not submitted the required Know Your Customer (KYC) documents, in compliance with recent Securities and Exchange Board of India (SEBI) regulations.

Dividend Details

KYC Compliance Requirement

The company's decision to withhold dividends stems from a SEBI Master Circular that mandates KYC compliance for physical security holders. Shareholders with non-compliant KYC status will not receive their dividend payments until they provide the following mandatory documentation:

• Permanent Account Number (PAN)
• Nomination details
• Contact information (including postal address with PIN and mobile number)
• Bank account details
• Specimen signature for physical folios

Impact on Shareholders

This move affects shareholders who hold physical securities and have not updated their KYC information. Jubilant FoodWorks emphasizes that dividend payments for these shareholders will be processed only after they submit the required documentation.

Steps for Compliance

Affected shareholders are advised to submit the relevant documents, including Forms ISR-1, ISR-2, ISR-3, SH-13, and SH-14, to enable the company to process the withheld dividends through electronic mode at the earliest.

Company's Stance

Jubilant FoodWorks states that this action is in line with SEBI's directive, which aims to enhance security and streamline the process of dividend distribution. The company will file the TDS Return electronically as prescribed in the Income Tax Rules within the applicable timelines.

Shareholders are encouraged to update their KYC details promptly to ensure uninterrupted receipt of future dividends and to comply with regulatory requirements. This move by Jubilant FoodWorks underscores the increasing importance of maintaining up-to-date investor information in the Indian securities market.

Jubilant FoodWorks , the operator of Domino's Pizza in India, has reported a strong performance for the second quarter of fiscal year 2026, showcasing resilience and growth across its operations.

Financial Highlights

• Consolidated revenue grew by 19.7% year-on-year to Rs. 23.40 billion
• Like-for-like growth of 9.1% in Domino's India
• Turkey business reported 5.6% like-for-like growth
• Consolidated PAT from continued operations increased by 53.7% year-on-year

Operational Expansion

The company continued its expansion strategy, adding 93 new stores during the quarter. This brings Jubilant FoodWorks' total store count to nearly 3,500, with Domino's accounting for about 2,500 of these outlets.

Performance Breakdown

India Operations

• Revenue from operations in India increased by 15.8% to approximately Rs. 17.00 billion
• Domino's India saw a 15% year-on-year growth in order volume
• Delivery channel revenue growth exceeded 20%
• Dine-in segment grew by 14%, while takeaway declined by 19%

Turkey Operations

• Reported revenues of Rs. 5.90 billion
• Achieved a PAT margin of 10.4%

Strategic Initiatives

1. Product Innovation: Launched sourdough pizzas and breads, following the success of Big Big Pizza and Chicken Burst.
2. Digital Advancements: Introduced an ad monetization platform on the Domino's app, partnering with brands like Apple, Tata Neu, and Flipkart.
3. Customer Base Expansion: The loyalty member base increased to over 40 million, with app traffic growing by 28%.

Management Commentary

Sameer Khetarpal, CEO and Managing Director, stated, "We are extremely delighted with the steady top-line growth across all our markets. Our India business continues to grow ahead of the market while also witnessing a consistent improvement in operating margin and PAT margin."

Outlook

The company remains optimistic about its growth trajectory, with October sales beating internal plans. Management is focused on maintaining a balance between expansion, same-store growth, and margin improvement.

Analyst Perspective

While the company has shown strong growth, investors should note the following:

1. The shift in customer behavior from takeaway to delivery may continue to impact channel mix.
2. Margin improvement initiatives are ongoing, with a target of 200 basis points improvement over three years from FY24 levels.
3. The company's expansion into new, smaller cities presents both opportunities and challenges in terms of market penetration and profitability.

Jubilant FoodWorks' performance demonstrates its ability to navigate a competitive market landscape while driving growth through innovation and strategic expansion. The company's focus on digital initiatives and product diversification positions it well for continued success in the evolving quick-service restaurant sector.