Domino’s India operator Jubilant Foodworks surpasses profit expectations amid delivery demand
The company reported a net profit of ₹917.6 million (approximately US$10.49 million) for the quarter ending June 30, a sharp rise from ₹558 million (US$6.70M) in the same period last year.
INDIA – Jubilant Foodworks, the master franchisee for Domino’s Pizza in India, has outperformed market expectations in its first-quarter earnings, driven by an increase in delivery demand and strategic pricing decisions.
The company reported a net profit of ₹917.6 million (approximately US$10.49 million) for the quarter ending June 30, significantly higher than the ₹645.6 million (US$7.75M) forecast by analysts, and a sharp rise from ₹558 million (US$6.70M) in the same period last year.
While many fast-food chains and budget retailers in India are grappling with reduced consumer spending due to rising living costs, Jubilant Foodworks has emerged as a standout performer.
Domino’s India posted an 11.6% growth in like-for-like sales, with delivery orders surging by 20.1%.
This contrasts sharply with competitors such as Sapphire Foods and Devyani International, operators of Pizza Hut in India, who reported declines of 8% and 4.2% respectively in same-store sales.
Jubilant’s success is attributed to its delivery-first approach, which includes aggressive expansion of store count, value meal combinations, and a focus on 20-minute delivery in densely populated metros. Notably, the company has maintained stable pricing for over ten quarters, choosing instead to optimise costs and waive delivery fees for app-based orders.
The impact of Jubilant’s strategy is being felt across the sector.
Devyani International acknowledged the effectiveness of Jubilant’s delivery model during its post-earnings call, stating, “Jubilant is doing a far, far better job versus what we are doing… because it is a delivery-first brand.”
Jubilant’s revenue for the quarter rose 17% to ₹22.61 billion, underscoring the strength of its operational model.
However, the company’s consolidated profit margin slightly contracted to 19.4% from 19.8%, attributed to the higher share of delivery orders and increased investment in infrastructure to support growth.
As Jubilant Foodworks continues to refine its delivery-first strategy and expand its footprint, it sets a benchmark for resilience and innovation in India’s competitive food services market.
With consumer behaviour shifting toward convenience and value, Domino’s India appears well-positioned to maintain its momentum in the quarters ahead.
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