Jubilant Foodworks Ltd Management Discussions

Economy Overview

The global economy is projected to grow by 3.0%1 in 2024, reflecting a moderation amid ongoing geopolitical tensions and supply chain disruptions. Despite these challenges, improvements in inflation outlooks and the implementation of proactive monetary policies have supported stability and consumer confidence. This resilience fosters cautious optimism, with many economies avoiding a prolonged slowdown or recession.

Growing Influence of Emerging Markets

Emerging markets within the G20 continue to play a crucial role in shaping the global economic landscape. They contribute approximately 30% to global output and trade, with their influence expanding through integration into global value chains. Over the past two decades, these economies have maintained impressive growth rates - averaging nearly 6% annually - fuelled by structural reforms, demographic advantages and technological advancements.

India remains a key growth engine for the global economy. The Reserve Bank of India projects FY25 GDP growth at 6.5%, consistent with the second advance estimates from the National Statistical Office, driven largely by strong private consumption. Real Gross Value Added (GVA) is expected to grow by 6.4% y-o-y, propelled by agriculture and services sectors.

Indias resilience is underpinned by ongoing reforms in digitisation, infrastructure and a sustained investment cycle supported by increased government expenditure. Improved capacity utilisation and a resilient financial sector further bolster this trajectory. These factors position India well on its path towards becoming the worlds third-largest economy.

Inflation, projected at 4.8%2 for FY25, is expected to decline further owing to favourable food prices and the impact of prior monetary policy measures. Recognising this favourable outlook, the Reserve Bank of India has begun rate cuts to stimulate growth while maintaining price stability, thuscreatingaconduciveenvironmentforsustainedeconomicexpansion.

Source: 1World Economic Outlook, April 2025; 2RBI Monetary Policy Review

Industry Overview

The Global Consumer Foodservice Industrys revenues is estimated to have surpassed $3.1trillion in CY2024 with higher transaction volume growth partially offset by a decline in revenue per transaction. This also impacted investment in outlet expansion with the global outlet count increasing only by 1.8%. While the revenue growth was distributed across most regions as services spending continue to improve an upward trajectory following the pandemic; however, cost inflation and the ability to pass on price increase to consumers led to higher value offerings impacting profitability for the industry.

Delivery is expected to be the most dynamic channel within Consumer Foodservice. By 2029, Delivery is expected to account for 25% of global sales, compared to 21% in 2024. Consequently, the share of Takeaway is expected to stabilise. Dine-in share is expected to continue to experience a decline from 55% in 2024 to 51% by 2029, largely driven by the growth of delivery services.

The Indian foodservice Industry, at $56.1 billion in CY 2024, is currently the ninth largest food service market in the world. Over the last fifteen years, the Indian food services market (Industry) has grown at CAGR of 8%, largely mirroring the nominal GDP growth of the country. Within it, organised market is growing faster and its share at 33.8% is increasing at the expense of the unorganised market.

Indian Food Delivery, estimated at $7.6 billion in CY 2023, saw an unprecedented CAGR growth of 42% between CY 2018-23 and the CAGR growth is estimated to be ~16% between CY 2023 and CY 2028. The growth will be spurred by increased adoption of home delivery, well supported by higher frequency as per industry estimates.

Growth Drivers

The food services industry in India will continue to grow at a faster rate owing to a number of secular trends. Within the overall industry, Chained QSR segment is expected to chart an even faster growth trajectory.

Consistent Rise in Per Capita Income in Consumption-Led Economic Growth

Indias share of domestic consumption, measured as private final consumption expenditure, in its GDP is ~60%. The continued strength in consumption can be attributed to a mix of socioeconomic factors. The high share of private consumption to GDP has the advantage of insulating India from volatility in the global economy. It also implies that sustainable economic growth directly translates into sustained consumer demand for goods and services. The per-capita income (at current prices) has grown at a CAGR of 9%. This rate of growth of per-capita income is expected to give a major boost to discretionary spending.

Demographic Tailwinds

India has the second-largest urban population in the world. The pace of Indias urbanisation is a key trend to note for its implication on Indias economic growth. As per UN estimates, around 416 million people will be added to Indias urban population between 2018 and 2050, translating to approximately 40% urbanisation by 2030. This trend is expected to reflect greater purchasing power in the urban centres with stronger growth opportunity for industry.

India also has one of the youngest populations globally compared to other leading economies. The median age in India is estimated to be 28.7 years and is expected to remain under 30 years until 2030. The younger population is likely to have a greater inclination towards branded food service players.

Digital Democratisation

The Indian economy has been digitalising at a remarkable pace over the last decade. According to the State of Indias Digital Economy Report 2024, India is the third largest digitalised country in the world in terms of economy-wide digitalisation and 12th among the G20 countries in the level of digitalisation of individual users.

The improving broadband network penetration, device and services affordability has caused an increase in data usage across the country and enabled Indians to embrace digital applications.

The number of internet users at 840 million, has doubled since 2016. The digital transaction volumes have grown by seven times since 2019.

By 2030, Indias digital economy is projected to contribute nearly one-fifth of the countrys overall economy, outpacing the growth of traditional sectors. Over the past decade, digital-enabling industries have grown at 17.3%, significantly higher than the 11.8% growth rate of the economy as a whole. Digital platforms, in particular, have expanded rapidly, with an anticipated growth rate of approximately 30% in the coming years.

Growth in Online Ordering

The share of online sales in the food service industry has reached double digit in 2021 and has continued to grow since then. The analysis of the funnel of Indian online consumers shows a tapering from a high number of internet users at 840 million to active consumers of social media and content at 450 million to 165 million digital commerce transactors.

Aided by digital democratisation and huge headroom for growth for digital commerce transactors, the share of online sales is expected to increase at a faster clip, further enabled by the following secular trends:

Consumers are now accustomed to delivery across town classification helped with the ever-expanding reach of the delivery ecosystem in Tier II/III/IV

With the option of food now being delivered at the touch of a button from the comfort of their home and at any time of the day, convenience is helping drive delivery growth and move users from occasion-based ordering to habitual ordering

Strategic Priorities

The Companys strategic priorities defines key focus areas, establishes the framework for decision-making and lays the foundation for the Company to maintain a consistent focus on driving sustained and profitable growth while creating long-term value for all stakeholders.

‘Be the BOLD is the Companys core strategy, driving profitable growth, enhancing customer satisfaction and solidifying market leadership. This strategy rests on four fundamental pillars: Breakthrough Technology, Operate with Excellence, Leading with Purpose and Delicious Food in every offering.

The Company embraces Breakthrough Technology by consistently investing in and leveraging cutting-edge technologies to optimise operations, personalise customer experiences and foster innovation across the value chain. A key component is the active utilisation of the proprietary Location.AI platform for data-driven site selection, optimising expansion strategies through market analysis and predictive modeling. Store.AI is implemented to create smarter stores, optimising in-store operations through real-time data analytics to enhance efficiency, inventory management and the customer experience. Moreover, the Company strives to deliver immersive and delightful customer shopping experiences through engaging mobile apps and an enhanced loyalty programme, leveraging customer data to tailor promotions, offers and recommendations for increased customer engagement and retention.

Operate with Excellence is all about continually streamlining processes, improving efficiency and ensuring consistency across all outlets and operations. A unique commissary-based sourcing, manufacturing of critical items and distribution model is leveraged to achieve the lowest recipe cost and highest fill rate, ensuring efficient resource utilisation and a consistent ingredient supply. The Company delivers the freshest pizzas with the fastest delivery times, optimising processes to minimise the time from order to delivery. Proprietary last-mile platforms are utilised to optimise delivery routes, track orders in real-time and ensure efficient and timely delivery, further enhancing the customer experience.

Leading with Purpose is at the heart of the Companys strategy, driven by the overarching purpose of Serving JOY. This is reflected in the understanding that ‘The Joy of Customers is our ultimate reward and ‘Joy in teams is our secret ingredient. The Company recognises the power of food to create extraordinary experiences, contributing to happy memories every day. ‘Serving JOY serves as the North Star, guiding all choices, decisions, work practices and investments. This commitment means prioritising the CUSTOMER FIRST, endeavouring to find A BETTER WAY, expressing CARE, thriving in HUSTLE and chasing GROWTH ambitions. The Company translates this purpose across the entire organisation, ensuring every store delivers JOY and can rely on the Companys values for guidance.

Finally, the Company is deeply committed to providing Delicious Food in Every Offering. This commitment extends beyond simply introducing new menu items; the Company is strategically developing comprehensive food platforms. This involves continuously innovating the menu, improving product quality and catering to evolving customer preferences through the creation of diverse and compelling food platforms. The Company invests in culinary research and development to create innovative and appealing food platforms, uses high-quality ingredients and ensures adherence to strict food safety standards, personalises offerings to cater to diverse tastes and dietary requirements within these platforms and continuously seeks customer feedback to refine recipes and improve product satisfaction across all food platforms.

B. Breakthrough Technology

Store.AI

The Company is leveraging the power of data and AI to unlock unprecedented growth and elevate the customer experience. One key area is Location.AI, a proprietary engine that analyses thousands of internal and external demand signals to identify optimal locations for new stores. This allows for prediction of demand with remarkable accuracy, down to specific streets and malls, strategically expanding the network and maximising reach. Location.AI also optimises existing delivery areas and store timings, maximising growth and operational efficiency and enables hyperlocal marketing campaigns to drive demand and engage customers at a granular level.

Another area of focus is Restaurant.AI, a suite of AI-powered tools designed to enhance efficiency, optimise performance and elevate the customer experience. This includes an advanced surveillance solution that uses AI to ensure compliance and cleanliness in stores, safeguarding high standards. Restaurant.AI also dynamically adjusts delivery zones and discounting strategies, optimising demand and managing peak loads, even during challenging conditions.

Finally, Delivery.AI, powered by rider technology, ensures the hiring, onboarding and retention of the best riders to deliver fast and efficient service. This facilitates rider onboarding in under 30 minutes, dynamically allocates orders for optimal efficiency and proactively communicates with customers about potential delays, ensuring faster deliveries, optimised rider performance and an exceptional customer experience. The Company is shaping the future of food through these AI-driven initiatives.

During the year, the Company launched Elate, Indias first Android-based POS (Point of Sale) and Order Taking System designed specifically for the food service industry. Elate represents a significant step forward in Companys digital transformation journey. It is cloud-first and seamlessly integrates with the Companys D2C platforms and hence is able to take advantage of sophisticated machine learning models to form a unified and personalised digital ecosystem. Elate has been developed by the Companys 250-member product, UX, tech and data science team. It is specifically designed to improve order-taking, store operations and customer experiences inside stores and is all set to revolutionise the restaurant operations by reducing the training times and ensuring desired customer experiences across the entire portfolio of Brands.

O. Operate with Excellence

The third priority is to continue driving operational excellence. The Company places inordinate focus on continuous improvement when it comes to executing with excellence. From procurement to food tech park operations to managing the logistics to kitchen operations to last mile operations, across brands and countries, the Company is developing a unique way of execution – ‘The JFL Way. Notably, with the Companys vast expanse of operations, the continuous endeavour is to manage complexity at lower cost, generate leverage while bringing in improvements in the backward-integrated sourcing supply chain with state-of-the-art commissaries. One critical outcome of this priority will be marked improvement across cost lines and productivity.

Store Operations

A foundational element for Dominos india turnaround has been the restructuring from a four-region to a seven-region model, further segmented into 35 circles, with each region poised to scale to a Rs. 1000-cr business and each circle led by a dedicated ‘market-maker. This localised approach is yielding a strong uptick in underlying customer metrics, signaling significant potential for future gains.

Integrated Supply Chain

The Company has built a robust integrated supply chain, which oversees four broad functions, ensuring consistent quality, efficient operations and support for future growth:

Sourcing and Supplier Management

The Company places considerable emphasis on procuring high-quality raw materials, fresh ingredients, packaging, engineering products, capital goods and equipment, enabling it to provide quality products and experiences to its customers.

A key element of this strategy is the centralised procurement through commissaries, which maximises leverage and enables the Company to negotiate favourable pricing with suppliers. This approach is evident not only in India but also in Jubilant FoodWorks DPEU operations (Turkey, Azerbaijan and Georgia). DPEU utilises a similar commissary-based procurement organisation, ensuring consistent standards and cost efficiencies across its supply base. The Procurement and Quality teams maintain strong oversight to uphold quality standards at every stage.

Food Safety and Quality Control

High hygiene standards, food that is uncompromised on quality and taste and consumer safety are the Companys top priorities. The Company has developed sustainable systems and processes for ensuring the highest standards of food safety and hygiene. It also adheres to all the applicable rules and regulations regarding the manufacture, storage, distribution of products and labelling information – under Food Safety and Standards – for all its food products, including legal metrology. The Company works with its partners and employees to ensure that there is no compromise on the taste, quality and safety of the products, which its consumers have come to love over the years.

Commissaries and Distribution Centres

The Company operates a network of commissaries and distribution centres to support its diverse brand portfolio. In India, eight commissaries and four distribution centres primarily manufacture food intermediaries, house central kitchens and act as fulfillment centers/warehouses for the majority of ingredients, ensuring consistent quality and timely delivery to stores. The primary raw materials used in pizza preparation, such as cheese, flour, vegetables and chicken, are sourced and processed within these commissaries. Dominos utilises fresh, centrally produced dough made with the standard global recipe. The Greater Noida commissary features a dedicated dough lab that continuously monitors inputs to ensure consistency. Dedicated facilities also exist for desserts meant for Dominos, donuts for Dunkin and a recently introduced central kitchen. This central kitchen exemplifies forward integration, enabling standardised menus, consistent quality through enhanced supervision, automation and cost efficiencies.

DPEU operates six commissaries and one distribution centre across Turkey, Azerbaijan and Georgia. These facilities manufacture dough and serve as fulfillment centers, mirroring the function of the Indian commissaries. The Gebze commissary features a dedicated dough lab, ensuring quality standards are maintained in the dough production process. COFFYs fulfillment operations are managed through four main commissaries in Turkey, creating synergies with Dominos operations. To support future store expansion across all regions, the Company plans to continue investing in both new and existing commissary infrastructure, optimising capital expenditure through strategic use of 3PL capacities and facility expansions.

The Jubilant Food Park Bangalore commissioned in the previous year is the largest and the most prestigious food processing unit, adding unprecedented new capabilities for business growth across the entire portfolio of brands. This facility is designed to serve 750+ Dominos stores and 300 stores of Popeyes, Hongs Kitchen and Dunkin. In addition to the usual Dough manufacturing and the Cold Warehouses at our Supply Chain Centers, the Bangalore Food Park has large factories for chicken toppings and chicken marination, bakery products manufacturing, seasoning manufacturing and a state-of-the-art Central Kitchen. This gives the Company a unique cost advantage along with end-to-end value chain control.

Research and Development

The Company has an internal product development team (comprising a team of chefs, food technology expert and a kitchen in-charge) which interacts constantly with consumers, the marketing team and the market research teams to get their feedback on our food products and new product ideas. The Company also has a dedicated internal product development kitchen located at the commissary in Greater Noida and at its Head Office in Noida. It also relies on franchisors expertise along with close collaboration among other franchisees for new product development ideas as well as food technology. The internal product development team works independently and also in close collaboration with the vendors to develop the ingredients for our food products to meet ongoing requirements for menu innovation.

Duringtheyear,theCompanypivotedfromingredientinnovation to establishing a full-fledged R&D function for new product development and new categories. The famous Brioche bun in Popeyes India is developed in-house with recipes validated by RBI team. In Dominos, the R&D team ensured that the menu is 100% free from usage of artificial preservatives, colours and flavour under the Baking Goodness initiative of the brand. The team also continuously strives to reduce fat and salt content in all its products while maintaining the same loved taste.

Logistics

Efficient logistics are critical to the Companys success. In India, store operations depend on frequent and consistent deliveries of raw materials, intermediaries and finished food items, requiring a high fill rate (Dominos has an industry leading fill-rate of over 99.5%). This is achieved through rigorous materials and resource planning, load leveling, close engagement with suppliers and optimised inventory levels. DPEU mirrors this focus, with Dominos stores receiving deliveries twice per week and COFFY stores varying based on store type. Across all operations, a dedicated cold-chain fleet ensures the timely delivery of temperature-sensitive goods, minimising wastage and maintaining quality. The logistics teams in both India and DPEU continuously focus on improving fleet utilisation and reducing mileage through advanced planning and collaboration with suppliers.

The Company has a dedicated cold-chain fleet that helps in ensuring timely delivery of raw materials to stores. These trucks are refrigerated to ensure that the ingredients are supplied in a temperature-controlled environment, which is monitored during transit to ensure quality and minimise wastage.

L. Lead with Purpose

Companies built to last, have a culture and people processes that are home grown. To succeed, the Company has identified three interlinked objectives:

(i) Engaged and inclusive front-line teams (ii) Be the employer of choice

(iii) Be guided by a unique JFL culture embedded with values that last beyond us

Culture and Allied HR Strategy

Smart hustle, guest-centric, collaborative, flexible and tech-driven are the five basic tenets which define the Companys culture. Accordingly, the objectives of the Companys Human Resources strategy have been defined with a view to attracting talent, optimising their deployment and providing them with opportunities to develop their potential, thereby ensuring that all their skills and expertise are available to meet the current and future needs of the Company. The success of this approach is borne out by the results of employee engagement and satisfaction surveys, conducted every year. During the year, the Company was regarded as Great Place to Work for third time in a row as a reflection of high trust, high performance culture and a marker of being an employer of choice.

Diversity and Inclusion

The Company firmly believes that focusing on diversity, equity and inclusion is not just the right thing to do, it is critical for long-term success. All the stakeholders benefit when the Company amplifies diversity, creates a platform to celebrate uniqueness and creates an environment where everyone can contribute, thrive and prosper. It brings diversity of thought, greater innovation, better understanding of customer mind-sets, better employee engagement and sets the Company on a path to excellence. During the year, the Company took concerted efforts to build a more diverse workforce and nurture an equitable and inclusive culture. The Company is committed to create an ecosystem that attracts and grows talent from all genders, backgrounds and generations.

D. Delicious Food

The underlying objective here is to build a multi-brand and multi-country food service organisation. The endeavour is to serve multiple occasions, innovate on formats that drive engagement and customise menu as per the needs of local market. JFL Groups store network is now 3,316 stores strong across six markets and five brands.

Through the market presence in these six countries – India, Turkey, Bangladesh, Sri Lanka, Azerbaijan and Georgia – the Group has a potential to serve ~22% of worlds population. This enhances the potential long-term growth for the Group.

The Group has further strengthened its Portfolio of Brands comprising three franchised global brands – Dominos, Popeyes and Dunkin along with two own-brand Hongs Kitchen and COFFY. The Portfolio of Brands is further accentuated with participation of multiple cuisines, which significantly enhances the ability of the Group to participate in its consumers total share of meal occasions.

Dominos

The Global QSR Pizza industry is valued at $94 bn, with the international QSR Pizza segment (outside USA) is estimated at $41 bn. A large part of the future international growth will be contributed by the emerging markets. The partnership between Dominos and the JFL Group represents a long-standing relationship between the worlds leading pizza brand and one of the most prominent foodservice players in emerging markets.

The JFL Group operates a total network of 3,031 stores across six markets—India, Turkey, Bangladesh, Sri Lanka, Azerbaijan and Georgia—through both corporate-owned and sub-franchise stores. These markets share several strategic similarities. Each has exclusive full-territorial rights for under-penetrated, high potential markets. These markets are supported by one of the strongest value equations and operate on a unique commissary-based sourcing model. These markets have developed self-delivery and own-app infrastructure from the ground up. A distinct culture of agility and relentless focus on operational execution enable high throughput per store. Deep local expertise has been cultivated over decades, underpinned by a long-term vision and proactive investments for sustainable growth. During the year, a total of 238 net new stores were added across these six markets.

India

The turnaround of Dominos India has been propelled by a powerful confluence of strategic initiatives, each playing a crucial role in driving growth and enhancing the customer experience.

On the technology front, the complete migration of the customer app to a ‘micro-services-based architecture has been transformational. This shift has enabled a record-high monthly active user (MAU) and app installations during the year.

Concurrently, the brand refresh with the ‘It Happens Only with Pizza campaign improved brand scores, bolstering the brands ability to capture key occasions and expand market share. A key focus has been on consistently reducing delivery times for customers and the Company has have achieved this via technology interventions in delivery systems as well as improving efficiencies in stores.

To further capitalise on in-store growth during lunch hours, the Company launched the ‘Lunch Thali, a competitively priced four-course meal at Rs. 99, offering exceptional value. Complementing this, the introduction of the ‘Chillrz beverage range aims to improve beverage attachment rates, while the globally acclaimed Dominos Cheese Volcano pizza range catered to indulgence-seeking customers, creating excitement and buzz within the category.

During the year, Dominos India introduced three new flavors to the popular Cheese Burst range, further enhancing the existing pizza offerings. Recognising the untapped potential in the chicken segment, the Company identified significant opportunities to drive value through chicken-based products. IInsights from international Dominos markets revealed a strong consumer preference for chicken items as shareable companions to pizza, known to increase order value and repeat visits. In response, Dominos India refined its customer value proposition, particularly in South India. As a result, the Chicken Feast range has now been launched nationally, starting at Rs. 99, supported by a dedicated Above-The-Line (ATL) campaign.

Turkey

Dominos Turkey delivered above-inflation growth and gained share. This was driven by successful activation of key consumption occasions, including the Bol launch, TPG campaign and calendar moments such as Sports events, Eid, Summer, Black Friday and New Year.

Through initiatives such as Cepte100, enhanced personalisation and an overhauled performance marketing strategy, Dominos Turkey maximised its own online sales (OLO).

On aggregator platforms, the team implemented new order acquisition strategies by leveraging platform-specific tools more efficiently. Additionally, the regional pricing restructure introduced a mid-tier pricing segment, which supported improved store-level profitability.

With the new version of MyDominos, the backoffice system for stores and franchisees for Dominos Turkey, it is now easier for the team to manage their operations more efficiently. Through the franchisee incentive project, the teams have enabled stores to clearly track their targets and get rewarded when they meet them.

Popeyes

Popeyes is known for its bold and unique Louisiana-style Cajun fried chicken and iconic chicken sandwiches. The use of bold Cajun spices - a proprietary blend of cayenne pepper, garlic, onion, black pepper, celery and white pepper - and techniques developed by an in-house culinary team of chefs have made the fried chicken a point of reference for Michelin Chefs and celebrities. The brands passion for its Louisiana heritage and flavorful authentic food has enabled Popeyes to become one of the worlds largest chicken quick service restaurants.

The iconic US Fried Chicken brand - Popeyes - made its debut in India with the opening of its first restaurant in Bengaluru in January 2022, followed by rapid expansion to 61 restaurants across 23 cities.

COFFY

Between 2019 and 2024, Turkeys coffee market underwent a significant transformation, marked by a clear shift towards chained operators. Chained caf?s expanded their market presence and grew foodservice value by 382%, reaching TRY 11.8 bn, while their store countincreasedmodestlyto1,033.Incontrast,independentcaf?ssaw a 26% drop in store numbers and a sharp 66% decline in transaction volume, although their foodservice value still rose by 195%, driven more by inflation than by organic growth. This divergence reflects evolving consumer behavior, with preferences shifting toward consistency, digital integration and modern experiences offered by branded chains. By 2024, total transactions across the market grew by 10%, store count rose by 7% and foodservice value surged by 49%, underscoring a broad rebound in demand. Among the most dynamic entrants, COFFY stood out, rapidly capturing a 2.3% share in the chained caf? segment, matching some of the global players in Turkey. COFFYs rapid rise is rooted in strategic store expansion, competitive pricing and a digitally native brand approach.

During the year, the Company expanded its product portfolio in COFFY with trend-driven innovations - such as introducing pistachio-flavored coffee - which helped increase both customer frequency and new customer acquisition.

The team successfully migrated COFFY to the newly developed, modern and stable app infrastructure. During the year, the Company also introduced Wallet and QR code payment capabilities, enhancing the digital customer experience for COFFY consumers. Additionally, the Company delivered digitalisation-focused improvements that strengthened marketing capabilities.

The team along with the franchisees opened 63 new stores, growing the network to 160 caf?, now serving consumers across 36 cities in Turkey.

Financial Highlights

Group System Sales came in at Rs. 93,222 million

Group Network at 3,316 stores with yearly net addition of 325 stores; Dominos Network is now at 3,031 stores(+238 yoy net store addition)

Consolidated Revenue came in at Rs. 81,417 million(+44% yoy)

Standalone Revenue came in at Rs. 61,047 million(+14.3% yoy)

Dominos India Revenue up by 13.4% yoy

Consolidated EBITDA

EBITDA(Reported) came in at Rs. 15,722 million(+37.4% yoy) with Margin at 19.3%(-93 bps yoy)

EBITDA(Pre-Ind-AS-116) came in at Rs. 10,369 million(+45.7% yoy) with Margin at 12.7%(+15 bps yoy)

Standalone EBITDA

EBITDA(Reported) came in at Rs. 11,807 million(+7.8% yoy) with Margin at 19.3%(-116 bps yoy)

EBITDA(Pre-Ind-AS-116) came in at Rs. 7,257 million(+7.4% yoy) with Margin at 11.9%(-76 bps yoy)

Notably, Dominos India EBITDA(Pre-Ind-AS-116) came in at Rs. 8,566 million(+12.4% yoy) and sustained margin at 14.5% despite growth investments.

Consolidated				Standalone
			Profit and Loss Metrics Particulars in INR mn
FY 2025	FY 2024	Growth %		FY 2025	FY 2024	Growth %
81,417	56,551	44.0%	Revenue from operations	61,047	53,418	14.3%
753	409	84.3%	Other Income	371	275	35.1%
82,171	56,960	44.3%	Total Income	61,418	53,693	14.4%
22,678	13,411	69.1%	Raw Material and Beverage Cost	15,015	12,591	19.3%
58,739	43,140	36.2%	Gross Profit	46,032	40,827	12.7%
72.1%	76.3%		Margins	75.4%	76.4%
14,104	10,588	33.2%	Personnel Expenses	10,779	9,914	8.7%
28,913	21,107	37.0%	Manufacturing and Other Expenses	23,445	19,962	17.4%
15,722	11,445	37.4%	Op. EBITDA	11,807	10,951	7.8%
19.3%	20.2%		Margins	19.3%	20.5%
5,226	2,878	81.6%	Interest Cost	2,609	2,239	16.5%
8,065	5,980	34.9%	Depreciation	6,724	5,684	18.3%
-46	159	n.a	Share of Profit/(Loss) in Associate	0	0	n.a
3,139	3,156	-0.5%	PBT bei*	2,846	3,303	-13.9%
3.9%	5.6%		Margins	4.7%	6.2%
45	-1,702	n.a	Exceptional Item	248	120	n.a
3,094	4,857	-36.3%	PBT	2,598	3,183	-18.4%
3.8%	8.6%		Margins	4.3%	6.0%
774	850	-8.9%	Tax	658	844	-22.1%
2,330	2,306	1.0%	PAT bei*	2,154	2,459	-12.4%
2.9%	4.1%		Margins	3.6%	4.6%
2,321	4,008	-42.1%	PAT	1,941	2,339	-17.0%
2.9%	7.1%		Margins	3.2%	4.4%

*bei: before exceptional items

Ratio Analysis

	Consolidated
Key Ratios	FY2025	FY2024
Debtors turnover*	27.0	37.9
Inventory turnover (on Cost of Goods sold)	5.6	4.6
Interest coverage ratio*	3.5	10.3
Current ratio	0.6	0.6
Debt equity ratio^	0.6	0.6
Operating EBITDA margin	19.3%	20.2%
Operating EBIT margin	9.4%	9.6%
Net profit margin*	2.9%	7.1%
Return on Equity*	10.5%	18.7%
Return on Capital Employed*#	17.9%	13.0%

*The significant change in ratios (i.e. change of 25% or more as compared to the FY 2023-24) is primarily on account of consolidation of DP Eurasia accounts w.e.f. February 1, 2024 ^Borrowings less cash and cash equivalents #Capital employed = Total Assets - Intangible Assets (i.e. Brand, MFA and Goodwill) - Current Liabilities - Net Deferred Tax Liabilities Note: Please refer to Note 51 of the standalone financial statements for an explanation of the standalone financial ratios and the reason for the change.

Risk Management

Risk Management Framework

Effective risk management is integral to JFL operations and is embedded in its day-to-day business transactions and activities. The framework seeks to identify, prioritise, mitigate, monitor and appropriately report any significant threat to the organisations strategic objectives, its reputation, operational continuity, environment, compliance as well as the health and safety of its employees.

A Disciplined Approach to Managing Risks

The approach is based on assessment of several factors and associated risks through proper analysis and understanding, conducted before undertaking any business activities or implementing changes to processes and systems.

A Disciplined Approach to Managing Risks

The approach is based on assessment of several factors and associated risks through proper analysis and understanding before undertaking any business activities and implementing changes to processes and systems.

Internal Controls and their Adequacy

The Companys current systems of Internal Financial Controls (IFC) are aligned with the requirement of Section 134(5)(e) of the Companies Act, 2013 (Act). As stipulated under the said provisions, the IFC framework established by the Company encompasses the following elements:

Orderly and efficient conduct of business

Safeguarding of its assets

Adherence to Companys policies

Prevention and detection of frauds and errors

Accuracy and completeness of the accounting records and timely preparation of reliable financial information

The Companys internal controls are commensurate with its size and the nature of its operations. They have been designed to provide reasonable assurance with regard to all the above stated IFC elements. To make the IFC framework robust, the Company worked on three lines of defence strategy:

First Line of Defence: Build internal controls into operating processes, which primarily include controls operated by the process owners under the overarching guidance of the Code of Conduct, Whistle-blower mechanism, budgetary controls, financial delegation of authority, accounting policies and manuals, period-end closing checklist, basis of accounting estimates and various other Company policies and procedures. For better governance, these operational controls have been implemented through robust digital, Enterprise Resource Planning (ERP) and other IT systems.

Second Line of Defence: Create an efficient review mechanism, comprising monthly business performance reviews under which each business unit and function is reviewed on its performance. Additionally, a robust Control Self-assessment (CSA) process enables process owners to perform self-assessment against the Risk and Control Matrices (RCMs). The CSA process enables the Company to monitor the adequacy and effectiveness of the internal control environment.

Third Line of Defence: Independent assurance through internal audits performed by audit firms of international and national repute. The internal audit scope covers the entire gamut of the Companys operations based on a rolling audit plan approved by the Audit Committee. The Audit Committee reviews reports submitted by the internal auditors and suggestions for improvement are considered. Additionally, the statutory auditors audited Companys financial statements included in this Annual Report and have also confirmed the adequacy and operational effectiveness of the Companys internal control over financial reporting (as defined in Section 143 of the Act).

Outlook

The JFL Group believes in the immense long-term potential of the food service category in the under-penetrated emerging markets. Secular trends such as young population, rising urbanisation, growing affluence, accelerated shifts towards digitalisation and shift in favour of the organised sector—particularly in favour of big, established, credible brands. With its portfolio of strong brands, key competitive advantages such as a proprietary commissary and delivery network and an in-house technology stack, the Group is well positioned to capitalise on these growth opportunities.

Cautionary Statement

Certain statements in the ‘Management Discussion and Analysis describing the Companys objectives, projections, estimates and expectations may be ‘forward-looking statements within the meaning of applicable securities laws and Regulations. Actual results could differ materially from those expressed or implied. Important factors that could influence the Companys operations include economic developments within the Country, demand and supply conditions in the industry, input prices, changes in Government regulations, tax laws and other factors, such as litigation and industrial relations.