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Jubilant Foodworks Share Price Target: Jubilant Foodworks kicked off its financial performance on Wednesday for the first quarter of the current fiscal year with a 29 per cent jump, riding on sales of Domino’s pizzas. But while the earnings beat expectations, global brokerages are not yet biting into a bullish view on the stock.
Jubilant Foodworks Q1 earnings highlights
Jubilant Foodworks on Wednesday reported a 29 per cent year-on-year (YoY) rise in standalone net profit to Rs 67 crore for the April–June quarter of FY26, compared with Rs 51.5 crore in the same quarter last year, while revenue from operations increased 18 percent YoY to Rs 1,702 crore from Rs 1,440 crore.
Earnings per share improved to Rs 1.01, and expenses grew nearly 18 percent to Rs 1,626 crore.
Store expansion
The company, which operates Domino’s Pizza in India, added 67 new Domino’s stores over the last three quarters. During the same period, one Popeyes outlet and two Dunkin’ Donuts outlets were closed.
As of June 30, Jubilant operates 2,240 Domino’s outlets, 60 Popeyes stores, 33 Hong’s Kitchen outlets, and 29 Dunkin’ stores in India.
Should you buy, sell or hold the stock after Q1 results?
Following the financial performance, global brokerages issued varied assessments of the stock
HSBC has 'Hold' Rating: The brokerages has upgraded its stance to 'hold' from 'reduce' along with target price to Rs 650 from Rs 600. The brokerage cited sustained like-for-like growth of 11.6 per cent in Q1FY26, though noted a slight margin miss due to increased promotional activity.
Two Brokerages Maintain 'Neutral' Recommendation: Analysts at Goldman Sachs and JPMorgan have maintained a 'neutral' rating, cutting target prices to Rs 675 and Rs 745, respectively.
CLSA Maintains 'Reduce': The brokerage has maintained a 'reduce' rating on the stock and cut target price to Rs 516 from Rs 519. It pointed out a 199 basis-point contraction in gross margins to the lowest level in over 30 quarters, along with an EBITDA miss. The brokerage also reduced its FY26–28 estimates by 5–11 per cent to reflect higher costs.
Macquarie Maintains 'Underperform': The brokerage has maintained an 'underperform' rating with a target price of Rs 545, noting that strong performance in Turkey offset slower-than-expected India margins. The brokerage also highlighted that discount-led like-for-like growth has not translated into margin improvement.
Citi Recommends 'Buy': The brokerage has recommended buying the stock for a target of Rs 820, which is raised from Rs 805.
(Disclaimer: The views/suggestions/recommendations expressed here in this article are solely by investment experts. Zee Business suggests its readers consult their investment advisers before making any financial decision.)
(This story will be updated shortly.)
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