What Caused the 77% Decline in Domino’s Pizza India Operator Jubilant FoodWorks' Q4 Net Profit?
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Synopsis
Jubilant FoodWorks Ltd, the Indian operator of Domino’s Pizza, has reported an astonishing 76.86% drop in its Q4 net profit despite a significant rise in revenue. The company attributes this decline to rising operational costs and market dynamics, leaving investors concerned yet intrigued. Is there a turnaround ahead for this QSR giant?
Key Takeaways
- 76.86% drop in net profit for Q4 FY25.
- Revenue increased by 33.6% to Rs 2,103 crore.
- Significant rise in expenses, up 32.31%.
- Opened 52 new outlets and expanded into nine cities.
- Loyalty program reached 33.7 million members.
Mumbai, May 14 (NationPress) Jubilant FoodWorks Ltd, which operates Domino’s Pizza in India, announced a staggering 76.86% decrease in its consolidated net profit for the January-March quarter (Q4) of FY25. The firm recorded a net profit of Rs 48 crore in Q4, down from Rs 207.5 crore during the same period last fiscal, as disclosed in its stock exchange filing.
This significant profit drop occurred despite a strong 33.6% increase in revenue from operations, which surged to Rs 2,103 crore from Rs 1,574 crore in Q4 FY24.
The growth was fueled by a robust demand in the quick-service restaurant (QSR) sector, new store openings, and creative menu innovations.
However, the company’s total expenses skyrocketed by 32.31% to Rs 2,044.9 crore in the fourth quarter, compared to Rs 1,545.4 crore in the same quarter of the previous fiscal year.
Earnings before interest, taxes, depreciation, and amortisation (EBITDA) increased by 24.7% year-on-year to Rs 389 crore, up from Rs 312 crore.
Nonetheless, the EBITDA margin experienced a slight decline to 18.5%, down from 19.8% a year earlier, according to the filing.
The flagship brand, Domino’s, achieved an 18.8% revenue growth, aided by a 24.6% rise in order volumes.
Jubilant FoodWorks has opened 52 new Domino’s outlets and has expanded into nine new cities, bringing its store count to 2,179 across 475 cities.
Its loyalty program has also shown impressive growth, reaching 33.7 million members.
The company’s board has proposed a final dividend of Rs 1.2 per equity share for FY25, pending shareholder approval at the upcoming AGM.
“If approved, the dividend will be distributed within 30 days of the meeting,” the company noted in its filing.
On the stock market, shares of Jubilant FoodWorks ended 1.26% lower at Rs 692.85 on the National Stock Exchange (NSE) on Wednesday.
Point of View
I see this significant profit drop as a crucial moment for Jubilant FoodWorks. While the company has shown promising revenue growth driven by new store openings and a loyal customer base, the sharp increase in expenses raises critical questions about operational efficiency. The upcoming AGM will be pivotal, and shareholders will be keenly watching the dividend decision.
NationPress
08/06/2025
Frequently Asked Questions
What caused the profit decline for Jubilant FoodWorks?
The profit decline was primarily due to a significant surge in total expenses, which increased by 32.31%, overshadowing the revenue growth.
How much revenue did Jubilant FoodWorks report in Q4?
Jubilant FoodWorks reported a revenue of Rs 2,103 crore for Q4, marking a 33.6% increase from the previous fiscal year.
What is the current number of Domino's outlets in India?
Jubilant FoodWorks operates a total of 2,179 Domino’s outlets across 475 cities in India.
What is the proposed dividend for FY25?
The board has recommended a final dividend of Rs 1.2 per equity share for FY25, pending approval at the upcoming AGM.
How did the market react to the news?
Shares of Jubilant FoodWorks closed 1.26% lower at Rs 692.85 on the National Stock Exchange.
