Jubilant FoodWorks shares plunge over 8% despite 67% jump in profit; here is why

Shares of Domino's Pizza chain operator in India, Jubilant FoodWorks, fell as much as 8.04% to hit an intraday low of ₹434.65, data from BSE showed. On the National Stock Exchange (NSE), Jubilant FoodWorks shares dropped as much as 8.11% to hit an intraday low of ₹434.20 a day after it reported its March quarter earnings.

Jubilant FoodWorks shares came under selling pressure after the company in a letter to its shareholders said that same store sales growth also known as like for like (LFL) growth for Domino's in financial year 2026 declined to 6.5% from 7.5% in the previous financial year.

Jubilant FoodWorks said that average bill value moderated during the FY26 due to affordability-led interventions, including lowering the free delivery threshold to ₹99, targeted cashbacks, and zero packaging charges in select markets.

"These actions were aimed at sustaining order momentum and protecting market share in a competitive environment. Dine-in and takeaway growth was relatively softer during the quarter, impacting overall like for like (LFL) growth," the company said in a letter to shareholders.

"Looking ahead, our focus remains on delivering sustainable 5–7% LFL growth. Key priorities include continuing to drive customer value and volume growth; win on occasions and revive dine-in and takeaway growth," the company added.

Leading investment firm Jefferies in a note said that fourth quarter results provided limited triggers for rerating and flat same store sales growth and weak margin commentary suggest that a turnaround may take more time.

The investment firm added that the management is opting for calibrated price hikes to protect growth and it has cut its EBITDA estimate by 10-12%.

Jubilant FoodWorks post market hours said that it earned a consolidated net profit of ₹80 crore in January-March quarter, marking an increase of 67% from ₹48 crore in the year-ago period.

Its revenue from operation in the fourth quarter of financial year 2025-26 rose 19% to ₹2,499 crore compared with 2,095 crore in the same period last year.

The Delhi-based company reported stable operational performance as its EBITDA also known as operating profit jumped 24% to ₹485 crore and its EBITDA margin rose 70 basis points to 19.4%.

The company, which also operates chains like Popeyes and Hong's Kitchen, said that its total expenses in the period under review were higher at ₹2,401.46 crore compared to ₹2,028.97 crore a year ago, the company said.

During March, select markets experienced temporary LPG supply constraints, which had a limited and localised impact on our operations. Overall, this translated into an estimated 30-40 basis points impact on Q4 FY26 like-for-like growth of Domino's India, the company said.

As of 10:43 am, Jubilant FoodWorks shares traded 7% lower at ₹439, underperforming the NIFTY Largemidcap 250 index which was up 0.34%.