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.

Jubilant FoodWorks Limited (JFL), a prominent player in the food service industry, has responded to the Bombay Stock Exchange's (BSE) inquiry regarding the recent surge in trading volume of its shares. The company's clarification sheds light on the market activity and reaffirms its commitment to transparency.

Key Points of the Clarification

• Market-Driven Surge: JFL attributes the significant increase in share volume to prevailing market conditions, emphasizing that the surge is "purely due to market conditions and absolutely market driven."

• Regulatory Compliance: The company confirms adherence to Regulation 30 of the SEBI (Listing Obligations & Disclosure Requirements) Regulations, 2015.

• Disclosure Practices: JFL asserts that all necessary disclosures, including price-sensitive information, have been made without withholding any material information that could impact the company's operations or performance.

Recent Financial Disclosure

Jubilant FoodWorks recently submitted its financial results, as noted in the clarification:

Company's Statement

Mona Aggarwal, Company Secretary and Compliance Officer of Jubilant FoodWorks, stated in the official communication:

"We hereby further submit that we are not aware of the reason for significant increase in the volume of shares of the Company, in the recent past. Therefore, the increase in the volume of the shares of the Company is purely due to market conditions and absolutely market driven."

This clarification by Jubilant FoodWorks underscores the company's commitment to maintaining transparency with its investors and regulatory bodies. By promptly addressing the BSE's inquiry, JFL demonstrates its adherence to good corporate governance practices, ensuring that all stakeholders are informed about significant market activities related to the company's shares.

Investors and market observers may take note of this clarification while considering the recent trading patterns of Jubilant FoodWorks shares. As always, it is advisable for investors to make informed decisions based on comprehensive market analysis and company performance metrics.