Jubilant FoodWorks (JUBI IN) – Q2FY26 Result Update – Demand outlook strong – Upgrade to ‘BUY’
Published on 13 Nov 2025
We are upgrading JFL from Hold to BUY given 1) strong sales momentum in Octoebr and positive outlook 2) focus on premiumisation led by new innovations and launches across brands 3) guidance of 200bps margin expansion by FY28 (on FY24 base) with 100bps coming from reduction in losses in new businesses.
2Q26 results were inline with 9.1% LFL growth led by robust menu innovation and focus on providing value to consumers. Popeyes is witnessing good traction and with improving economics and healthy double digit growth. Dp eurasia continues to remain impacted by inflation which has now stabalized in Turkey. We expect ~220bps expansion over FY26-FY28 led by 1) increase in average ticket size 2) supply chain benefits and 3) gains from tech investments and a healthy LTL outlook.
We estimate 57.9% standalone EPS CAGR over FY26-28 on a low base. We have assigned 33x FY27 EV/EBIDTA to standalone nos and arrive at value of Rs634/share and 22x PAT to dp eurraisa (Rs 66/share) on its CY26 earnings. We assign an SOTP based target price of Rs700 (670 earlier). JUBI seems best placed in QSR space to gain from expected improvement in consumer demand coupled with healthy commentary. Upgrade to BUY.
