Jubilant FoodWorks shares downgraded and target price cut by analysts after Q4 results

Shares of Jubilant FoodWorks came under analyst scrutiny after the company’s Q4 FY26 earnings, with global brokerages turning cautious on the near-term demand outlook despite the company reporting healthy revenue growth and margin expansion during the quarter.

Jubilant FoodWorks reported Q4 FY26 revenue from operations of ₹2,499.47 crore, up 19.3% year-on-year, while consolidated net profit rose sharply to ₹824.23 crore from ₹493.30 crore reported in the corresponding quarter last year.

Operationally, EBITDA stood at ₹484.9 crore compared with ₹391.9 crore in Q4 FY25, while EBITDA margin improved by 70 basis points to 19.4%.

However, analysts flagged concerns around weak same-store sales growth trends and demand quality.

HSBC downgrades Jubilant FoodWorks to Hold

HSBC downgraded Jubilant FoodWorks to ‘Hold’ and maintained its target price at ₹530, citing moderation in like-for-like growth trends.

The brokerage said like-for-like (LFL) growth of 0.2% during the quarter had no significant one-off support, apart from a marginal LPG-related impact of around 0.3-0.4%, and reflected a sharp moderation in underlying momentum.

HSBC added that Q1 demand trends appear marginally better but are largely activation-led, forcing the company to choose between growth and margins in the near term. The brokerage also highlighted inflationary pressures as an additional headwind and said it has cut its estimates on the stock.

Jefferies cuts target price to ₹600

Jefferies retained its ‘Buy’ rating on the stock but slashed its target price sharply to ₹600 from ₹850 earlier.

The brokerage said consumer technology platforms are increasingly becoming the preferred route for investors to play the consumption theme, and Jubilant FoodWorks’ Q4 performance did not provide enough reasons to revisit the investment case aggressively.

Jefferies noted that flat same-store sales growth and cautious short-term margin commentary suggest that investors may still need to wait for a stronger turnaround.

While the brokerage acknowledged that Q4 earnings modestly beat its estimates, it said management’s calibrated pricing strategy is likely to result in a 10-12% cut in EBITDA expectations. Jefferies, however, described the cautious pricing approach as prudent in the current demand environment.

Brokerages remain focused on demand recovery trends, same-store sales growth trajectory and the company’s ability to balance margins with growth initiatives in the coming quarters.

Disclaimer: This article is based on brokerage reports and company filings. Brokerage views mentioned are their own and do not represent the views of the publication. This article does not constitute investment advice.