Synopsis:
The QSR operator reported strong profit recovery and steady operational momentum, supported by double-digit LFL growth and rapid outlet expansion. Brokerages remain upbeat, with multiple upgrades citing robust franchise strength, easing competition, and sustained market share gains, signalling improving confidence in long-term growth prospects.
The shares of the largest food service company gained up to 9 percent in the morning session after the company’s net profit elevated up by 191 percent YoY & 107 percent QoQ in Q2FY26.
With a market capitalization of Rs 40,748.74 crore, the shares of Jubilant FoodWorks Ltd were trading at Rs 617.55 per share, increasing around 8 percent as compared to the previous closing price of Rs 573.75 apiece.
Q2FY26 Highlights
The shares of Jubilant FoodWorks Ltd have seen bullish movement after announcing its financial performance in Q2FY26, in which revenue increased by 20 percent on a year-on-year basis from Rs 1,955 crore in Q2FY25 to Rs 2,340 crore in Q2FY26. However, on a Quarter-on-Quarter basis, revenue zoomed by 3.4 percent from Rs 2,261 crore in Q1FY26 to Rs 2,340 crore in Q2FY26.
Moreover, net profit increased by 191 percent on a yearly basis from Rs 67 crore in Q2FY25 to Rs 195 crore in Q2FY26, meanwhile, on a quarter-on-quarter basis, net profit jumped by 107 percent from Rs 94 crore in Q1FY26 to Rs 195 crore in Q2FY26.
Domino’s India maintained a strong operating momentum in Q2FY26, with healthy 9.1% LFL growth and an impressive 16.5% surge in delivery-led performance. Expansion remained aggressive, adding 81 new outlets and reaching 2,321 stores. Newer brands also contributed positively, with Popeyes delivering robust double-digit SSSG, reinforcing the company’s multi-brand growth strategy and strengthening overall market presence.
Brokerage Recommendations
HSBC, one of the well-known brokerages globally, upgraded to a ‘Buy’ rating on this stock with a target price of Rs 660 apiece, indicating a potential upside of 7 percent from Friday’s price of Rs 618.30 per share.
According to the brokerage, the company’s strong franchise quality and ongoing strategic initiatives. Competition is easing, supporting a more stable operating environment. While SSSG may moderate in H2FY26, HSBC’s 5% estimate is still viewed as healthy and better than many consumer peers, leaving scope for potential upside.
Brokerages remain optimistic, with Jefferies retaining a ‘Buy’ and a Rs 1,000 target, highlighting Jubilant’s superior same-store sales performance versus other QSR peers. Citi also reiterated its ‘Buy’ with an Rs 800 target, noting the company’s strategic focus on accelerating growth and market share gains, even if it temporarily pressures margins, especially as many competitors face declining sales and profitability.
Jubilant FoodWorks is one of India’s leading food service companies, best known for operating Domino’s, alongside fast-growing brands like Popeyes, Hong’s Kitchen, Dunkin’, and COFFY. With a rapidly expanding store network and strong focus on innovation, delivery efficiency, and digital capabilities, the company continues to strengthen its leadership in the QSR sector.
Written by Abhishek Singh
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