Jubilant Foodworks Q1 PAT up 60% YoY; Brokerages Cut Target Prices

Jubilant Foodworks reported a 59.8% YoY growth in PAT for Q1 FY26, with revenue increasing 17% YoY to Rs 2,260.90 crore. The company expanded its store network to 3,387 outlets, adding 330 new stores. Brokerages Nuvama, Avendus, and Motilal Oswal have cut their target prices for Jubilant Foodworks to Rs 811, Rs 700, and Rs 725, respectively, while maintaining their ratings. The brokerages have revised their revenue and EBITDA estimates for FY26 and FY27.

Jubilant FoodWorks Ltd. (JFL) reported a robust 59.8% year-on-year (YoY) growth in profit after tax (PAT) for the first quarter of FY26, reaching Rs 97.2 crore. The company's revenue climbed 17% YoY to Rs 2,260.90 crore, supported by a 17% increase in pre-tax operating profit and a 19.4% EBITDA margin. The company expanded its store network to 3,387 outlets, adding 330 new stores, with Domino’s India revenue growing 17.7% YoY, driven by strong order growth of 17.3% across all market tiers [1].

Brokerage firms have responded to JFL's Q1 results by adjusting their target prices. Nuvama has revised its target price for JFL to Rs 811 from Rs 838, while maintaining a 'Buy' rating. Avendus has cut its target price to Rs 700 from Rs 735, maintaining an 'Add' rating. Motilal Oswal has revised its target price to Rs 725 from Rs 750, maintaining a 'Neutral' rating. These adjustments reflect the brokerages' views on JFL's performance and future prospects [2].

JFL's expansion plans for its Popeyes brand are also gaining traction. The company plans to expand the brand to 100 stores in India by the end of FY26 or early quarter one FY27. Sameer Khetarpal, Managing Director and Chief Executive Officer of JFL, highlighted the company's quick expansion and the potential of the Popeyes brand in India [3].

Looking ahead, JFL aims to achieve 14–15% annual growth, driven by 5–7% same-store sales growth and about 10% from new store openings. The company expects margins to improve by around 200 basis points over the next two to three years [3].

References:
[1] https://www.business-standard.com/companies/quarterly-results/jubilant-foodworks-q1-results-pat-rises-to-64-on-strong-delivery-growth-125081301787_1.html
[2] https://economictimes.indiatimes.com/markets/stocks/news/jubilant-foodworks-shares-in-focus-after-q1-pat-grows-60-yoy-brokerages-cut-target-prices/articleshow/123294156.cms
[3] https://www.cnbctv18.com/business/companies/jubilant-foodworks-stores-expansion-plans-popeyes-dominos-sameer-khetrapal-19650880.htm