Jubilant’s profit jumped 67%, but the stock fell 7.81% after results
Revenue growth outpaced costs YoY and lifted margin, but other income contributed 19.66% of pre-tax profit.
Filed 20 May 2026, 15:55 IST · after market close · Jubilant Foodworks Ltd (JUBLFOOD)
Key takeaways
- Consolidated net profit rose +67.08% YoY, helped by a lower tax rate and higher other income.
- Operating margin expanded 0.92 percentage points YoY as revenue grew +18.84%, faster than expenses at +17.49%.
- The stock fell -7.81% after the results, a much larger move than its 3.29% median reaction to the past eight results.
Price around the results
Revenue growth outpaced costs YoY
Jubilant Foodworks reported consolidated Q4FY26 revenue of Rs 2,499.47 cr, up +18.84% YoY and +2.55% QoQ. YoY expenses grew +17.49%, slower than revenue, lifting operating margin by 0.92 percentage points. Sequentially, expenses grew +3.05% against revenue growth of +2.55%, narrowing margin by 0.39 percentage points.
Tax and other income lifted reported profit
Net profit rose +67.08% YoY and +13.09% QoQ, helped by tax-rate declines of 4.63 percentage points YoY and 13.48 percentage points QoQ. Other income contributed 19.66% of pre-tax profit, rising to Rs 23.98 cr from negative Rs 15.12 cr in Q3FY26. Interest rose +13.47% QoQ and depreciation increased +26.05% YoY. Operating margin has declined for the second straight quarter, from 20.35% in Q2FY26 to 19.79% in Q3 and 19.4% in Q4, though it remained 4.59 percentage points above the median of 93 Consumer Discretionary peers.
Domino’s added stores despite weak like-for-like growth
Management said Domino’s added 59 stores, entered 10 new cities and reached 521 cities, while Popeyes added five stores to reach 78. The company said Domino’s order growth was +10.4% YoY and delivery-channel revenue grew +10.3%, with delivery accounting for 76.1% of the mix. Management also said Domino’s like-for-like growth was just +0.2% YoY in Q4, against its medium-term guidance of 5–7%.
The market reaction was unusually severe
The stock fell -7.81% on the first reaction, including a -4.92% opening gap, with volume at 9.87 times its average. The decline extended to -9.53% after five sessions and was -11.26% after 15 sessions. Past reactions to eight results were evenly split between four rises and four falls, with a median absolute move of 3.29%, making this response unusually large for the stock.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,499 cr | ₹2,437 cr | +2.55% | +18.84% |
| Other income | ₹24 cr | ₹-15 cr | — | +111.84% |
| Expenses | ₹2,015 cr | ₹1,955 cr | +3.05% | +17.49% |
| Operating profit | ₹485 cr | ₹482 cr | +0.53% | +24.79% |
| Operating margin (%) | 19.40% | 19.79% | — | — |
| Interest | ₹117 cr | ₹104 cr | +13.47% | +0.72% |
| Depreciation | ₹269 cr | ₹248 cr | +8.44% | +26.05% |
| Profit before tax | ₹122 cr | ₹115 cr | +5.84% | +75.47% |
| Tax | ₹28 cr | ₹42 cr | -32.97% | +46.39% |
| Net profit | ₹82 cr | ₹73 cr | +13.09% | +67.08% |
| EPS (₹) | ₹1.21 | ₹1.07 | +13.08% | +65.75% |
Operating margin of 19.40% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.81% | -7.79% |
| Next session | -7.60% | — |
| 5 sessions | -9.53% | -9.06% |
| 15 sessions | -11.26% | — |
| 30 sessions | -7.26% | — |
Volume on the results session was 9.87× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Domino’s recorded 10.4% year-over-year order growth in Q4.
- Delivery channel revenue grew 10.3% year over year, with delivery at 76.1% of the mix.
Guidance & outlook
- Domino’s medium-term guidance is for 5–7% like-for-like growth.
Expansion
- Domino’s added 59 stores and expanded to 10 new cities, reaching 521 cities.
- Popeyes added five stores, increasing its store count to 78.
- Popeyes expanded its footprint in the West by entering Pune.
- Standalone operations added 61 stores sequentially during the quarter.
Competition
- The company describes itself as the largest QSR player for 30 years, at 1.7 times the second-largest player.
Problems & risks
- Domino’s like-for-like growth was 0.2% year over year in Q4.
What to watch
- Whether operating margin recovers from 19.4% after two consecutive quarterly declines.
- Whether Domino’s like-for-like growth improves from +0.2% YoY.
- Whether delivery-channel revenue growth stays around the reported +10.3% YoY level.