Jubilant FoodWorks Limited, which operates fast-food chains Domino's Pizza and Dunkin' Donuts, has announced the divestment of its complete stake in associate company Hashtag Loyalty Private Limited through a Share Purchase Agreement executed on December 29, 2025. The transaction involves the sale of the company's entire 31.66% holding in Hashtag Loyalty for a total consideration of ₹6,415.94.

Transaction Details

The Share Purchase Agreement was signed with Mr. Karan Chechani, one of the founders of Hashtag Loyalty Private Limited. Following the completion of this transaction, Hashtag Loyalty will cease to be an associate company of Jubilant FoodWorks.

Financial Impact and Background

The divestment follows the discontinuance of business operations at Hashtag Loyalty Private Limited. During the previous financial year 2024-25, Jubilant FoodWorks had already fully impaired its investment in the associate company, indicating that the financial impact of this sale had been accounted for in prior periods.

Market Performance and Regulatory Compliance

Shares of Jubilant FoodWorks Limited ended at ₹563.15, up by ₹3.35, or 0.60% on the stock exchange following the announcement. The transaction does not fall within the ambit of related party transactions, as the buyer is not part of the promoter, promoter group, or group companies of Jubilant FoodWorks. The company has made this disclosure in compliance with Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations 2015.

Strategic Implications

This divestment represents Jubilant FoodWorks' strategic decision to exit from Hashtag Loyalty following the discontinuance of the associate's business operations. The sale to one of the original founders suggests an orderly wind-down of the company's involvement in this venture. With the investment already fully impaired in the previous financial year, the transaction is not expected to have any material impact on the company's current financial performance.

Jubilant FoodWorks Limited has received a significant GST demand order from tax authorities, requiring the company to pay ₹81.16 crores in GST along with penalties and interest. The order was issued by the Assistant Commissioner, CGST Division-I, Mohali on December 25, 2025.

GST Demand Details

The demand order pertains to alleged violations in Input Tax Credit (ITC) claims under the Input Service Distribution mechanism. The company received the communication on December 25, 2025 at 17:42 hours, covering the period from Financial Year 2018-19 to 2020-21.

Company's Response and Action Plan

Jubilant FoodWorks has expressed strong disagreement with the order, stating that it believes the demand is incorrect and does not consider the merits of the company's contentions. The company has indicated that it is in the process of filing an appeal against the order.

The company expects that following the redressal process, the impugned demand is likely to be dropped. Management has stated there is no material impact on financial operations or other activities of the company due to this order.

Regulatory Compliance

The disclosure was made under Regulation 30 of the SEBI Listing Obligations and Disclosure Requirements Regulations, 2015. The company explained that since the order was issued on December 25, 2025, which was a public holiday, the order was accessed on December 26, 2025, and the disclosure was made on the same date.

Financial Impact Assessment

Despite the substantial demand amount, Jubilant FoodWorks has stated that it does not anticipate any material financial implications from this order. The company's confidence in challenging the demand suggests it believes it has strong grounds for appeal.

The order was issued under Section 74 of CGST Act, 2017/PGST Act, 2017 and Section 20 of IGST Act, 2017, specifically targeting the alleged excess eligible ITC availed under the Input Service Distribution mechanism.