Jubilant Foodworks Ltd Management Discussions

Global Economy

The global economy demonstrated resilience in FY26 despite heightened geopolitical tensions, persistent supply chain realignments, and evolving monetary conditions. While inflation moderated across several major economies, growth remained uneven amid cautious consumer spending and tighter financial conditions.

According to the International Monetary Fund (IMF), global growth is estimated at 3.1% in CY2026, broadly stable versus the previous year, supported by easing inflation, resilient labour markets, and improving domestic demand in select emerging markets. However, geopolitical fragmentation, elevated commodity volatility, and policy uncertainty continue to shape the external macroeconomic environment.

Emerging markets remained key contributors to global growth, supported by stronger domestic consumption, digital adoption, and improving investment activity. As inflation gradually normalized, central banks across several economies began shifting toward a more balanced monetary stance, improving business confidence and supporting medium-term consumption recovery.

Global GDP Growth Trend (%)

Indian Economy

India continued to remain among the fastest growing major economies globally during FY26, supported by resilient domestic demand, strong public capital expenditure, healthy banking system liquidity, and continued formalization across sectors. As per the Government of Indias Economic Survey FY26, real GDP growth is estimated at approximately 6.5%–6.8%, reinforcing Indias position as a structural growth engine amid a moderating global environment.

Governments policies continued to remain supportive of growth and consumption. During the year, the Union Budget maintained a strong focus on infrastructure development, logistics efficiency, manufacturing competitiveness, and rural development. Public capital expenditure towards roads, railways, urban infrastructure, and digital public infrastructure remained elevated, supporting employment generation and multiplier effects across the economy.

In addition, fiscal measures aimed at improving disposable incomes and supporting household consumption were introduced through calibrated tax rationalization, targeted relief measures, and continued focus on middle-income households. Such interventions are expected to gradually improve consumer sentiments and discretionary spending over the medium term.

The Reserve Bank of India (RBI) maintained a balanced monetary approach during the year, with inflation management remaining a priority while ensuring adequate system liquidity and financial stability.

Inflation moderated meaningfully versus prior peaks, supported by softer commodity prices, proactive supply-side interventions, and improved food inflation management.

Indias banking sector remained healthy, with strong credit growth, improving asset quality, and robust capital adequacy. Continued growth in retail lending, digital payments, and formal financial inclusion further strengthened domestic demand fundamentals.

Urban consumption remained mixed during parts of FY26, particularly across certain discretionary categories, reflecting inflation-led affordability pressures and evolving spending priorities. However, improving rural demand trends, supported by better agricultural output, moderating inflation, and government interventions, contributed positively toward broad-based demand recovery.

Indias digital economy continued to scale rapidly, driven by increasing smartphone penetration, deeper internet access, growth in UPI-based payments, and rising consumer adoption of digital commerce and app-led services. These structural shifts continue to create favourable tailwinds for organized consumer platforms and digitally integrated businesses.

Looking ahead, improving macro stability, supportive fiscal policy, tax-led consumption support, infrastructure investments, and easing inflation are expected to support gradual recovery in discretionary spending. This creates a favourable medium- to long-term backdrop for organized food services, branded consumption, and convenience-led digital platforms.

Indian Food Services Industry Growth Overview

Indias food services industry continues to benefit from strong long-term structural tailwinds, including rapid urbanisation, rising disposable incomes, increasing workforce participation (especially among women), smaller nuclear household sizes, and evolving consumer preferences for convenience, consistency, hygiene, quality, and digital ordering. These factors have transformed out-of-home food consumption from an occasional indulgence into a regular lifestyle choice, particularly among millennials and Gen Z, who prioritise experiences, speed, and value.

The organised Quick Service Restaurant (QSR) segment, while operating in a highly competitive and dynamic environment, is steadily gaining significant market share from the large unorganised food services sector. Consumer behaviour is shifting decisively toward branded, trusted, and technology-enabled platforms that deliver superior convenience, affordability, hygiene standards, and consistent quality. According to industry reports, the organised segment (including QSRs, cloud kitchens, and caf?s) accounted for approximately 45-50% of the overall food services market in FY26 (up from 35-40% in 2019) and is projected to rise to around 55% by 2030, driving over 60% of incremental growth.

Market Size and Growth: The Indian organized QSR market was valued at approximately USD 3.7 billion in FY26, while broader food services market was estimated at around USD 78-94 billion. The organised QSR segment is expected to grow at a CAGR of 14% to reach USD 6 billion by 2030. The overall food services industry is projected to scale to USD 120-125 billion by 2030-31.

During FY26, the sector witnessed continued channel evolution. The Delivery channel remained a structurally important growth engine, accounting for a dominant share of transactions (often 60-70% for leading brands) and benefiting from aggregator partnerships and brand-owned apps. At the same time, dine-in and takeaway channels experienced some moderation across certain categories amid traffic shifts, seasonal factors, affordability dynamics, and evolving consumer behaviour post-pandemic.

Source: Kearney-Swiggy ‘How India Eats 2025 Report, Mordor Intelligence – India Quick Service Restaurant Market Report (Feb 2026), Redseer / Mordor Intelligence reports on under-penetration.

Competitive Intensity and Differentiation: Competitive intensity remained elevated, particularly in digital ordering ecosystems, value-led offerings, customer acquisition, and menu innovation. This environment has reinforced the critical importance of scale advantages, integrated supply chains, customer data and loyalty capabilities, strong brand trust, and operational excellence. Technology adoption — including AI-driven demand forecasting, dynamic pricing, contactless solutions, and data analytics — has emerged as a key differentiator for organised players.

India remains significantly underpenetrated in organised QSR relative to global benchmarks (e.g., far lower store density per million population compared to the US or China), presenting a large multi-decadal opportunity. Expansion into Tier-2 and Tier-3 cities, supported by improving infrastructure (highways, airports, and expressways), is unlocking new growth pockets.

_ Urbanization of Tier II and Tier III cities: Rapid urbanization in Tier II and Tier III cities has emerged as a powerful growth engine for Indias food services and QSR industry. With improving infrastructure, rising disposable incomes, and expanding digital connectivity, these markets are witnessing accelerated consumption of branded, convenient food options. Nearly 94% of restaurant operators are targeting expansion here, expecting breakeven within 2 years compared to longer cycles in metros. QSR chains are aggressively adding stores in cities like Lucknow, Jaipur, and Nagpur, where lower real estate costs and aspirational consumers drive higher same-store growth. This shift has helped the organised QSR segment penetrate deeper, contributing significantly to the projected 9-12% industry CAGR, as Tier II/III cities move from peripheral to primary growth drivers by FY26-FY30.

Urbanisation in India

_ Younger population: Indias youthful demographic, with over 65% of its 1.4 billion population under 35 and a strong millennial-Gen Z cohort, is a core driver of QSR demand. This segment treats quick, affordable, and experiential dining as a regular lifestyle choice rather than an occasional treat, heavily influenced by social media and global trends. Gen Z and millennials account for a disproportionate share of out-of-home consumption and digital orders, fuelling menu innovation, value deals, and premium experimentation. Their preference for convenience, variety, and hygiene has propelled QSR growth, with youth-driven demand supporting the industrys expansion into smaller cities and sustaining 9-12% CAGR projections through 2031.

_ Growth in nuclear households: The rise in nuclear and dual-income households has significantly boosted demand for convenient, time-saving food solutions in the QSR and food services sector. Smaller family units, coupled with longer working hours and increased female workforce participation, have shifted eating patterns toward ready-to-eat or delivered meals. This structural change has increased transaction frequency and per-capita out-of-home spending, particularly in urban and semi-urban areas. Nuclear households contribute to higher adoption of delivery and quick-service formats, supporting the organised segments gain in market share and aligning with broader lifestyle shifts toward convenience and consistency.

_ Premiumization alongside affordability demand: Consumers in the Indian QSR market increasingly seek a balance between premium experiences and everyday affordability, creating a "value-led premiumization" trend. While price sensitivity remains high, there is growing willingness to pay for better quality, hygiene, customization, and branded consistency over unorganised options. Brands respond with tiered menus—entry-level value meals alongside premium innovations—bridging street food prices and fine dining. This dual demand has driven higher average order values in delivery and supported margin resilience, making premium-yet-accessible offerings a key differentiator in a competitive landscape.

_ Shift toward trusted branded formats: There is a pronounced consumer shift from unorganised street food and local eateries toward trusted, hygienic, and consistent branded QSR formats. Organised players are gaining market share rapidly (from ~35-40% in 2019 to 45-50% in FY26, projected to reach ~55% by 2030) due to superior quality standards, food safety compliance, and reliable experiences. FSSAI regulations and post-pandemic health awareness have further accelerated this transition, with consumers prioritising brands that offer transparency, consistency, and technology-enabled service over cheaper unbranded alternatives.

_ Increasing Food Delivery Penetration and Digital Ordering Adoption: Food delivery and digital ordering have become structural growth engines for Indias QSR and organised food services industry, powered by explosive digital penetration, seamless aggregator and brand-app ecosystems, and unmatched convenience. With over 660 million smartphone users, ultra-affordable internet, widespread 5G rollout, and UPI processing 16–17 billion transactions monthly (accounting for ~85% of retail digital payments), online ordering is now highly accessible, low-cost, and frictionless across metros, Tier II, and Tier III cities. Major aggregator platforms with ~24–25 million monthly transacting users each, complemented by robust brand-owned apps like Dominos, Popeyes, have built highly interconnected ecosystems offering personalised recommendations, real-time tracking, dynamic combos, loyalty programmes, and ultra-fast delivery. In traffic-congested urban centres — where commuting and parking can add 25–40% to travel time — doorstep delivery eliminates friction and delivers exceptional convenience. Indian consumers currently average 3–5 orders per month per user (with significant headroom versus 8–10 in the US and 5–10 in China), driving rising frequency as platforms focus on retention and value. The online food delivery market expanded from Rs. 790 billion in FY25 to a projected Rs. 1.7–2.2 trillion by FY30 at a 17–23% CAGR, now contributing 60–70% of transactions for leading QSR players while still representing only ~11% of total food services spend — underscoring substantial multi-year runway.

Source: multiple public sources

About JFL and our strategic priorities

Jubilant FoodWorks Limited (JFL) is one of Indias largest and most respected organised food-service platforms and the worlds largest Dominos franchisee by store count. Over the past three decades, the Company has evolved from a single Dominos store in 1996 into a scaled, technology-led, multi-brand, multi-geography food-tech powerhouse. FY26 marked the historic 30-year milestone of Dominos Pizza in India. Today, JFL serves over 50 million customers annually across more than 650 cities globally through a fully integrated ecosystem spanning stores, world-class supply chain infrastructure, advanced technology platforms, and last-mile delivery operations.

As of 31 March 2026, the Group operated a network of 3,636 stores⁽¹⁾

^{(up from 3,285 at the end of FY25), with a net addition}

of 351 stores across brands and geographies during the year.

Jubilant FoodWorks ⁽¹⁾: 3,636 stores worldwide, 351 net stores added during FY26

Store additions in FY26

	End of FY25					Net additions in FY26					End of FY26
	India	Turkey(2)	SL	BAN	Total	India	Turkey(2)	SL	BAN	Total	India	Turkey(2)	SL	BAN	Total
DOMINOS	2,179	763	50	39	3,031	276	24	3	1	304	2,455	787	53	40	3,335
POPEVES	61	-	-	-	61	17	-	-	-	17	78	-	-	-	78
HONGS KITCHEN	33	-	-	-	33	-4	-	-	-	-4	29	-	-	-	29
COFFY	-	160	-	-	160	-	34	-	-	34	-	194	-	-	194
Total	2,273	923	50	39	3,285	289	58	3	1	351	2,562	981	53	40	3,636

1. Excluding Dunkin stores since its operations are reclassified as discontinued operations

2. Turkey includes Azerbaijan and Georgia as well

The business is anchored on 4 enduring structural strengths that create a virtuous growth flywheel and a formidable competitive moat:

1. Brand Leadership and Innovation: Dominos Pizza remains one of Indias most iconic, trusted, and dominant food-service brands, synonymous with consistent quality, unmatched value, rapid innovation, and exceptional customer recall. Over three decades, it has built deep emotional connect with Indian consumers by perfectly balancing global standards with local tastes through continuous menu innovation, value-for-money offerings, and lightning-fast delivery. As the clear market leader in the organised pizza category, Dominos holds significant market share and continues to strengthen its position in the broader QSR space through superior execution and customer-centricity.

Complementing this core strength, JFLs multi-brand portfolio strategically targets diverse consumer occasions and price points. Popeyes has emerged as a high-growth premium fried chicken brand, delivering strong same-store sales momentum (28% SSG in FY26) and winning customer hearts with its bold flavours, quality, and superior in-store experience — particularly in southern markets. Hongs Kitchen brings authentic Indo-Chinese cuisine with a focus on measured scale-up and improving unit economics. Together, these brands create a powerful, diversified portfolio that spans pizza, chicken, and Indo-Chinese categories, enabling JFL to capture a larger share of consumers wallets across everyday meals, indulgence, and family occasions while reinforcing overall brand trust and ecosystem loyalty.

FY26 Developments: The Company maintained strong momentum in innovation through a platformed approach, launching high-impact products such as Cheese Volcano, Chicken Burst, Four Cheese Sourdough, Big Big Pizza in Dominos and Flavor Burst burger range in Popeyes. Towards the end of the year, there were dedicated additions to the All Night Delivery (AND) menu, customized to satiate the late-night cravings of our customers. These innovations drove robust order growth and market share gains while balancing value and premium positioning. Popeyes delivered an impressive 28% same-store sales growth for the full year, accelerating expansion into western India and achieving sequential improvement in restaurant-level economics.

The Company undertook a strategic portfolio review during FY26 and decided not to renew the development rights for the Dunkin brand upon expiry of the current agreement term. This decision reflects managements continued focus on disciplined capital allocation, portfolio rationalisation, and sharper prioritisation of scalable growth platforms with stronger long-term value creation potential. The transition is being executed in a phased and orderly manner in alignment with contractual and regulatory requirements.

2. Scaled Digital Ecosystem: The Company is harnessing the power of data and Artificial Intelligence to driving superior decision-making, operational excellence, and enhancing customer experiences. Its proprietary Location.AI engine analyses thousands of internal and external demand signals to identify high-potential store locations with remarkable precision, optimise delivery catchment areas, adjust store operating hours, and enable hyperlocal marketing campaigns. Complementing this, Restaurant.AI leverages advanced computer vision and predictive analytics for real-time store surveillance to ensure consistent cleanliness and compliance, while dynamically managing delivery zones, discounting strategies, and peak-hour loads. Delivery. AI, powered by intelligent rider technology, streamlines rider onboarding to under 30 minutes, optimises order allocation, and proactively communicates with customers, resulting in faster deliveries and superior service reliability. These AI initiatives collectively strengthen JFLs competitive moat and position the Company at the forefront of technology-led food service.

FY26 Developments: During the year, the Company accelerated the roll out of Elate, Indias first Android-based, cloud-first Point of Sale (POS) and Order Taking System designed specifically for the food service industry. Developed in-house by a 250-member product, UX, technology, and data science team, Elate seamlessly integrates with the Companys direct-to-consumer platforms and leverages sophisticated machine learning models to deliver a unified, personalised ecosystem. The system significantly enhances in-store order taking, operational efficiency, and customer experience while reducing training time for store teams. Elate marks a transformative milestone in JFLs digital journey, enabling consistent, high-quality execution across its entire portfolio of brands and reinforcing its vision of building the stores of the future.

Digital leadership strengthened materially with monthly active users on the Companys apps crossing 17.1 million (up 25% YoY) and monthly transacting users growing over 20% to close at 5.5 million. Key launches included Dynamic Combos on the Dominos app, post-order page monetization and revamp of the Popeyes app and Dominos and Bangladesh Dominos to the proprietary next-gen platform.

3. Integrated Supply Chain: Deep and continuous investments in backward integration, state-of-the-art commissaries, and Food Parks have created one of the most robust and efficient supply chains in the Indian QSR industry. Anchored by a fully integrated "farm-to-fork" model, the Company maintains stringent control over raw material sourcing, processing, quality, and distribution. This vertical integration ensures consistent product quality across thousands of stores, minimises supply disruptions, optimises costs, and provides a significant competitive advantage in both speed and reliability. Supply chains scale and efficiency act as a strong moat, enabling superior operating leverage as the store network grows.

FY26 Developments: During FY26, the Company further ramped up the supply chain capacity by operationalizing the new commissary in Mumbai which is going to facilitate faster expansion of store network in the western region of the country. Doubling down on the "farm-to-fork" model, processing of two more ingredients was moved in-house. The company now operates production lines for producing seasoning and sauce at the commissaries, opening up more avenues of gross margin expansion.

4. Delivery Moat:JFL has built an industry-leading delivery capability that remains a cornerstone of its competitive differentiation. The Companys industry-leading 20-minute delivery promise is honoured on the back of a proprietary rider network of over 45,000 partners, a large fleet of owned and dedicated bikes, advanced routing algorithms, and real-time supply orchestration. The unique "box never leaves the hand" philosophy — where the pizza box is handed directly from the store to the rider and then to the customer — ensures exceptional product quality, temperature consistency, and service reliability. This end-to-end ownership of the delivery ecosystem delivers unmatched speed, superior customer experience, and cost leadership compared to aggregator-dependent models. Combined with AI-powered tools for dynamic order allocation, rider onboarding in under 30 minutes, and proactive customer communication, the delivery moat drives higher order frequency, stronger customer loyalty, and sustainable operating leverage.

FY26 Developments: The proprietary rider network scaled beyond 45,000 partners, supported by enhanced rider app features and Delivery.AI tools that improved onboarding, order allocation, and proactive customer communication. The industry-leading 20-minute delivery promise was expanded to more cities through real-time orchestration and the "box never leaves the hand" protocol.

Business Performance Review – FY26

FY26 was a year of disciplined execution in a competitive environment. The Company remained laser-focused on protecting demand, strengthening structural advantages, investing behind platforms of future growth, and driving operational excellence. Consolidated revenue from operations grew 17.4% year-on-year, supported by broad-based contributions across brands and geographies.

Dominos IndiaDominos India delivered 6.5% like-for-like (LFL) growth in FY26, building on a strong 7.5% in FY25. This translates into a healthy two-year average LFL of ~7%, in line with the Companys medium-term guidance of 5–7%. Delivery remained the primary growth engine, with order volumes posting strong growth. The moderation in Q4 was driven by a high base (12.1% YoY), seasonal, channel mix shifts, and calibrated affordability-led interventions aimed at protecting order momentum and market share. Dine-in and takeaway (DITA), which contributes ~25% of system sales, saw moderation but is being actively revived through dedicated menu propositions, store upgrades, service enhancements, and AI-led monitoring tools. Underlying demand drivers stayed resilient, with robust app engagement and continued market leadership in both the pizza category and broader QSR space.

Emerging Businesses Emerging businesses made encouraging progress. Popeyes delivered 28% same-store sales growth (SSG) for the full year, and further acceleration in southern markets such as Bengaluru and Chennai. Restaurant-level economics improved steadily, and the brand is on track to achieve restaurant-level profitability by exit-FY27. The Company remains highly optimistic about Popeyes long-term potential and plans to accelerate expansion while maintaining disciplined capital allocation. Portfolio rationalisation (including the exit from Dunkin) further enhanced the overall profitability profile of the emerging business units.

International Businesses International operations continued to deliver robust performance. DP Eurasia (primarily Turkey) posted strong LFL recovery and reported revenue growth amplified by inflation and favourable currency movements. The revenue from operations grew by 29% year on year. The business delivered 20.4% EBITDA margin and 8.3% PAT margin during FY26.

Operations in Sri Lanka and Bangladesh also delivered healthy double-digit growth. The Companys operations in both markets turned EBITDA profitable for the full year in FY26. The international network stood at 1,074 stores at year-end, providing geographic diversification and meaningful contribution to consolidated results.

Strategic Capabilities, Operational Excellence and Margin Management

Despite input-cost inflation across energy (including temporary LPG constraints in select markets), commodities, and wages towards the end of the year, the Company improved EBITDA margins through productivity initiatives, waste reduction, mix optimisation, and tighter cost discipline. The drag from emerging businesses on standalone adjusted EBITDA (pre-Ind AS 116) reduced to approximately 220 basis points; (residual ~200 bps excluding discontinued operations) ,an improvement of ~50bps YoY. The Company remains on track to bring this drag down to ~100 basis points by the end of FY28. Return on Capital Employed (RoCE) of the standalone business improved to ~18.9% in FY26 on pre-Ind AS basis, progressing toward a steady-state target of 20%+. Capital allocation remained disciplined, with capex intensity expected to moderate structurally as revenues scale and large supply-chain investments are largely behind. Free cash flow generation is expected to strengthen steadily over the next three years.

Developments in Human Resources: The companys HR agenda in FY26 was sharply anchored in embedding a values-led, inclusive culture to enable sustainable, profitable growth. The organization deepened its commitment to Care, Respect & Inclusion, strengthening D&I and POSH governance while driving high adoption (91%) of refreshed values across the workforce. Culture activation through leadership podcasts, employee storytelling, and large-scale engagement forums significantly enhanced alignment and connection. Performance management was redefined with values-integrated goal setting and sharper talent differentiation, backed by 100% completion rates and structured recognition of 2,500+ employees annually. These efforts translated into the MyVoice scores, an organization wide employee survey, rising to an all-time high (88%) and consistent GPTW recognition, positioning JFL among Indias top workplaces. Total number of people (employees and workers) on the rolls of the Company was 36,909 as on March 31, 2026.

Parallelly, the company built a future-ready talent engine and high-performance ecosystem through strategic interventions across leadership, capability building, and employee experience. The company redefined leadership pipelines and talent DNA, with strong internal mobility and sustained retention of top talent. Investments in leadership and functional capability—via premier institute partnerships, coaching, certifications, and digital learning—created a robust development architecture. HR digitization and process simplification improved efficiency, reducing employee queries by ~21% while enabling frontline teams with tech solutions. These integrated initiatives elevated employee experience and organizational effectiveness, culminating in external recognition as a Top 15 Retail Workplace, a 3rd consecutive GPTW and a WOW Workplace, reinforcing JFLs standing as an employer of choice.

FY26 Financial Highlights z Group System Sales came in at Rs. 109,838⁽¹⁾ million

z Group Network⁽²⁾ at 3,636 stores with yearly net addition of 351 stores; Dominos Network is now at 3,335 stores (+304 YoY net store addition)

z Consolidated Revenue⁽³⁾ came in at Rs. 95,125 million (+17.4% YoY)

z Standalone Revenue⁽³⁾ came in at Rs. 68,562 million (+13.0% YoY)

_ Dominos India Revenue up by 12.0% YoY z Consolidated EBITDA⁽³⁾

_ EBITDA(Reported) came in at Rs. 18,878 million (+19.1% YoY) with Margin at 19.8%(+29 bps YoY)

_ EBITDA(Pre-Ind-AS-116) came in at Rs. 12,595 million (+19.4% YoY) with Margin at 13.2% (+23 bps YoY)

z Standalone EBITDA⁽³⁾

_ EBITDA(Reported) came in at Rs. 13,730 million (+15.1% YoY) with Margin at 20.0% (+36 bps YoY)

_ EBITDA(Pre-Ind-AS-116) came in at Rs. 8,612 million (+15.8% YoY) with Margin at 12.6% (+31 bps YoY)

Notably, Dominos India EBITDA(Pre-Ind-AS-116) came in at Rs. 9,583 million (+11.9% YoY) and sustained margin at 14.5% despite growth investments

Notes:

1. Excluding sale of material to sub franchisee

2. The store count for the Group is as on March 31, 2026, post reclassification of Dunkin as discontinued operations. As of March 31, 2026 – Dunkin had 27 stores operating

3. Post reclassification of Dunkin as discontinued operations in the current and previous periods

Profit and Loss statement⁽¹⁾:

Consolidated			Profit and Loss Metrics	Standalone
FY26	FY25	Growth %	Particulars in INR mn	FY26	FY25	Growth %
95,125	81,045	17.4%	Revenue from operations	68,562	60,674	13.0%
741	737	0.7%	Other Income	350	354	-1.3%
95,866	81,781	17.2%	Total Income	68,912	61,029	12.9%
27,104	22,578	20.0%	Raw Material Cost	17,318	14,915	16.1%
68,021	58,467	16.3%	Gross Profit	51,244	45,760	12.0%
71.5%	72.1%	-63bps	Margins	74.7%	75.4%	-68bps
16,224	13,947	16.3%	Personnel Expenses	11,734	10,622	10.5%
32,919	28,675	14.8%	Manufacturing and Other Expenses	25,780	23,208	11.1%
49,143	42,622	15.3%	Total Operating Expense	37,514	33,830	10.9%
18,878	15,845	19.1%	Op. EBITDA	13,730	11,930	15.1%
19.8%	19.6%	29bps	Margin	20.0%	19.7%	36bps
4,360	5,202	-16.2%	Interest Cost	2,755	2,585	6.6%
9,587	7,954	20.5%	Depreciation	7,643	6,613	15.6%
70	-46	n.a	Share of Profit/(Loss) in Associate	0	0	n.a
5,742	3,380	69.9%	PBT from continued operations before exceptional items	3,681	3,086	19.3%
6.0%	4.2%	187bps	Margin	5.4%	5.1%	28bps
4,113	2,510	63.8%	PAT from continued operations before exceptional items	2,762	2,333	18.4%

 

Consolidated			Profit and Loss Metrics	Standalone
FY26	FY25	Growth %	Particulars in INR mn	FY26	FY25	Growth %
4.3%	3.1%	123bps	Margin	4.0%	3.8%	18bps
337	45	n.a	Exceptional Items	337	248	n.a
3,860	2,501	54.4%	PAT from continued operations	2,509	2,121	18.3%
4.1%	3.1%	97bps	Margin	3.7%	3.5%	16bps
582	-329	n.a.	Profit/(Loss) from discontinued operations	-236	-180	n.a.
4,442	2,171	104.6%	PAT	2,273	1,941	17.1%
4.7%	2.7%	199bps	Margin	3.3%	3.2%	12bps

(1) Post reclassification of Dunkin as discontinued operations in the current and previous periods

Ratio Analysis ⁽¹⁾:

	Consolidated
Key Ratios	FY26	FY25
Debtors Turnover	27.0	27.0
Inventory Turnover (on Cost of Goods sold)(2)	7.6	5.5
Interest Coverage Ratio(3)	9.4	3.6
Current Ratio(4)	0.4	0.6
Debt Equity Ratio	0.7	0.6
Operating EBITDA Margin(5)	19.8%	19.6%
Operating EBIT Margin(5)	9.8%	9.7%
Net profit Margin(5,6,7)	4.3%	3.1%
Return on Equity(5,7)	19.4%	10.5%
Return on Capital Employed(5,8)	15.7%	14.5%

1) Post reclassification of Dunkin as discontinued operations in the current and previous periods

2) Increase primarily attributable to improved inventory management and reduction in holding period

3) Increase primarily driven by improved operating profitability and reduction in interest cost for use of low interest bearing foreign currency loans by DP Eurasia B.V. (DPEU)

4) The decrease during the year was primarily attributable to higher current liabilities with increased operations

5) On post-Ind AS 116 basis

6) PAT from continued operations before exceptional items

7) Increase is driven by higher profitability, resulting in enhanced returns

8) Return on capital employed is defined as EBIT/Average capital employed during the year. Capital Employed is calculated as PP&E + Intangible assets + Security deposits + Other non-current assets (excluding investments and tax assets) + Current assets (excluding investments, cash and cash equivalents) – Current Liabilities (excluding borrowings and tax liabilities)

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 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

Indias organised QSR opportunity remains large, underpenetrated, and structurally attractive. JFL enters FY27 with confidence, backed by category leadership, a scaled digital ecosystem, integrated supply chain, strong technology capabilities, and disciplined capital allocation. While near-term operating conditions may remain dynamic, the structural drivers of the business remain firmly intact. The values that have guided the Company for 30 years — customer-first thinking, operational excellence, affordability, innovation, and disciplined execution — will continue to shape its journey as it builds a future-ready, multi-brand, multi-country food-tech platform.

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