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Margin pressures may cap gains for Jubilant FoodWorks despite strong growth

In a pre-quarter update for FY26 July-September quarter (Q2), Jubilant reported standalone revenue growth of 15.8 per cent to ₹1,698 crore

Jubilant FoodWorks
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Growth in India was aided by the net addition of 81 Domino’s stores in Q2, taking the first-half FY26 total to 142 new outlets and raising the overall store count to 2,321.

Ram Prasad Sahu
The stock of the country’s largest listed quick-service restaurant (QSR) chain, Jubilant FoodWorks, has fallen over 10 per cent in the past three months. While the company continues to outperform the sector with healthy double-digit growth, margins have been trending down, prompting some brokerages to cut earnings estimates for 2025-26 (FY26) through 2027-28. Valuations, which remain on the expensive side, have also weighed on the stock. Going forward, the company’s ability to sustain growth in a weak environment and its margin trajectory will be key determinants of any upside.
 
In a pre-quarter update for FY26 July-September quarter (Q2), Jubilant reported