BOB Capital Markets has reaffirmed its BUY recommendation on Jubilant FoodWorks with a revised target price of Rs 590, implying an upside potential of nearly 25% from current levels. The brokerage believes the company’s aggressive delivery-led strategy, rapid store expansion, strong digital traction and improving international profitability are positioning the quick-service restaurant giant for a sustained multi-year growth cycle. Despite temporary operational disruptions caused by LPG supply shortages and softer dine-in demand, Jubilant FoodWorks delivered robust revenue growth, margin expansion and a sharp jump in profitability during Q4FY26. The company also continues to benefit from strong Domino’s India momentum, Turkey market recovery and rising contribution from innovation-led product launches.

BOB Capital Sees Delivery Business Becoming the Core Growth Engine

Jubilant FoodWorks’ delivery-first strategy is emerging as the company’s most powerful earnings catalyst. According to BOB Capital Markets, Domino’s India sustained double-digit order growth during the quarter despite macro consumption volatility and weaker dine-in traffic. Delivery revenue climbed 10.3% year-on-year, while delivery contribution to the overall sales mix increased further to 76.1%.

The brokerage noted that consumer behavior continues shifting toward convenience-based ordering, benefiting Domino’s large-scale logistics network and digital infrastructure. Monthly active users across Domino’s, Popeyes and Hong’s applications reached 17.1 million, while transacting users touched 5.5 million, reflecting rising digital engagement across brands.

Management indicated that medium-term like-for-like growth could remain in the 5–7% range, driven primarily by delivery expansion, menu innovation and higher customer retention. The company also highlighted stronger traction among Gen-Z consumers through collaborations and limited-period offerings.

Q4FY26 Earnings Showcase Strong Margin Resilience

Jubilant FoodWorks delivered a solid operational performance during the March quarter. Consolidated revenue for Q4FY26 stood at Rs 24.9 billion, registering a growth of 19.3% year-on-year. EBITDA rose 23.7% to Rs 4.85 billion, while EBITDA margins improved 70 basis points to 19.4%.

Net profit surged 67.3% year-on-year to Rs 936 million, supported by better operating leverage, lower financing stress in international operations and improved cost efficiencies. Gross margins remained largely stable at 71.5%, despite wage inflation and elevated energy-related costs.

The company added 69 stores during the quarter, including 63 Domino’s outlets, taking its consolidated global network to 3,636 stores.

Below is a summary of the quarterly financial performance:

Domino’s India Continues to Dominate the QSR Landscape

The India business remains the centerpiece of Jubilant FoodWorks’ valuation story. Domino’s India reported 5% revenue growth with order growth remaining robust at 10.4%. Although same-store sales growth remained muted at 0.2% because of weaker dine-in trends, analysts believe the business is structurally positioned for stronger recovery once consumption conditions stabilize.

Average daily sales stood at Rs 80,069, while the company expanded into 10 additional cities during the quarter. BOB Capital Markets emphasized that Domino’s unmatched delivery infrastructure and technology investments continue to create strong competitive advantages in the Indian QSR sector.

The report also highlighted innovation-led launches such as:

• Big Big Cheese Burst Pizza
• Cheese Bowl-Cano
• Customized late-night menu offerings
• Flavor-led Gen-Z collaborations

These initiatives are helping improve engagement levels while strengthening brand relevance among younger consumers.

Turkey Operations Emerge as a Major Profitability Driver

International operations, particularly Turkey, delivered one of the strongest performances in the quarter. Revenue from Turkey jumped 59.2% year-on-year to Rs 7.6 billion, while profit after tax surged 150% to Rs 576 million.

PAT margins in Turkey improved by 274 basis points to 7.5%, aided by refinancing debt from Turkish Lira into Euro-denominated borrowings. Domino’s Turkey also recorded inflation-adjusted same-store growth of 9%, while the Coffy brand strengthened its position as Turkey’s fifth-largest coffee chain by store footprint.

BOB Capital believes improving profitability in overseas operations could become an increasingly important earnings driver over the next few years.

Store Expansion Strategy Remains Aggressive

Jubilant FoodWorks is maintaining one of the fastest expansion trajectories in India’s listed QSR sector. Management reiterated plans to add nearly 300 stores annually over the medium term, with Popeyes expected to contribute a rising share of incremental additions.

The Popeyes business itself delivered 28% same-store sales growth during FY26 and expanded to 78 stores after entering Pune as part of its western India strategy. Management remains focused on scaling the business while improving unit economics and customer adoption.

Analysts believe the combination of Domino’s scale, Popeyes expansion and international recovery provides Jubilant FoodWorks with multiple long-term growth levers.

Valuation Outlook and Investment View

BOB Capital Markets has maintained its BUY call with a revised target price of Rs 590. The brokerage values the India business at 30x EV/EBITDA and DP Eurasia at 35x price-to-earnings multiple under its sum-of-the-parts valuation framework.

The brokerage projects:

The brokerage expects revenue and EBITDA CAGR of approximately 6.6% and 6.5%, respectively, over FY26–FY28. Continued growth in digital ordering, operational efficiencies and overseas profitability improvement remain key bullish triggers.

Key Risks Investors Should Monitor

Despite the positive outlook, several operational risks remain relevant. Analysts warned that elevated raw material prices, aggressive competition in the QSR segment and slower same-store sales recovery could pressure profitability going forward.

The report also noted that LPG-related operational disruptions impacted same-store growth by nearly 30–40 basis points during Q4FY26, though management indicated the issue has largely normalized in Q1FY27 after diversifying sourcing channels.

Investment Perspective

Jubilant FoodWorks appears to be transitioning from a traditional dine-in QSR operator into a digitally powered food-tech platform. With delivery accounting for the majority of revenue, strong app engagement metrics, rapid store additions and improving international margins, the company is gradually strengthening its long-term earnings visibility.

BOB Capital Markets believes the stock’s recent correction has created an attractive entry opportunity for long-term investors seeking exposure to India’s organized food-service growth story. At current levels, the brokerage sees the risk-reward profile turning increasingly favorable, especially as operational efficiencies and scale benefits continue to improve over the next few years.