Jubilant Foodworks Ltd Measured outlook amid rising costs; SSSG recovery pace key monitorable

Research evidence excerpt

Jubilant Foodworks Ltd Measured outlook amid rising costs; SSSG recovery pace key monitorable

J P M O R G A N Asia Pacific Equity Research

21 May 2026

Jubilant Foodworks Ltd Neutral

JUBI.NS, JUBI IN

Measured outlook amid rising costs; SSSG recovery Price (20 May 26):Rs472.55

pace key monitorable ▼Price Target (Mar-27):Rs474.00 Prior (Mar-27):Rs480.00

JUBI’s Q4 pre-INDAS EBITDA growth was modest at +5% y/y, weighed down by

higher rental expenses and soft revenue growth (+5% y/y; LFL +0.2%) despite better- Consumer, Retail, Media

than-expected gross margin delivery (+100bp y/y). On the earnings call, management Latika Chopra, CFA AC

narrative was measured amidst rising inflationary headwinds, though noting Q1 is (91-22) 6157-3584

tracking better (price hike of 1.2%) and reiterating its 5-7% LFL growth target over latika.chopra@jpmorgan.com

the medium term. Store addition pace remained healthy (Domino’s: +61/+276 in Q4/ Himanshu Singh

FY26) and the company targets ~300 store adds this year in India (Dominos + (91-22) 6157-3610

himanshu.x6.singh@jpmorgan.com

Popeyes). JUBI noted near-term headwinds for operating margin on account of

Saransh S Gokhale

increased energy expense (~120 bps), wage hikes (50-60 bps from minimum wage

(91-22) 6157 3578

revisions across 11+ states and labor code), and emerging commodity inflation saransh.gokhale@jpmchase.com

(cheese, oil, packaging) - partially mitigated by efficiency and productivity measures J.P. Morgan India Private Limited, J.P. Morgan

including calibrated pricing (~1.2% taken), wastage reduction, and supply chain Tower,Registration:Santacruz(E),INH000001873,Mumbai (91-22)- 400098,6157-3000.SEBI

optimization. The standalone margin expansion target of ~200bps is now expected to

be delivered over time (vs FY28 earlier).