Shares of Jubilant FoodWorks are likely to remain in focus after global brokerage Citi trimmed its target price sharply while maintaining a 'Buy' rating, citing moderation in growth and softer store-level performance.

The revised target of Rs 650 from Rs 800 implies a steep downside of over 50 per cent, even as the firm continues to back the long-term story. The move follows the company's mixed Q4FY26 performance, where revenue growth remained steady but profitability declined and same-store sales growth stayed subdued.

Citi On Jubilant FoodWorks

• The brokerages maintains 'Buy'
• Target price Rs 650 versus Rs 800
• FY27 and FY28 revenue estimates cut 4-5 per cent; EBITDA estimates cut 5-7 per cent
• Cuts driven by Q4 results and moderation in same store sales growth
• India business valuation multiple cut to reflect slower same store sales growth trajectory
• Valued at 30 times March 2028 estimated EV to EBITDA before accounting standard adjustments vs 36 times earlier

Jubilant FoodWorks Q4FY26 Result

Jubilant FoodWorks Ltd reported a decline in profitability for the fourth quarter of FY26, with net profit falling 13.9 per cent year-on-year to Rs 42.6 crore from Rs 49.5 crore. Despite the drop in earnings, the company announced a dividend of Rs 1.2 per share. Meanwhile, the Domino's Pizza operator posted steady topline growth, with revenue rising 6.4 per cent YoY to Rs 1,679.7 crore, compared to Rs 1,579 crore in the same period last year.

On the operational front, the company saw improved margins. EBITDA grew 11.5 per cent YoY to Rs 345 crore, up from Rs 309 crore, while EBITDA margin expanded to 20.5 per cent from 19.6 per cent, reflecting better cost efficiencies and operating leverage. Domino's India, the company's key business segment, registered 5 per cent revenue growth on a year-on-year basis, supported by strong demand momentum.

However, like-for-like revenue growth remained muted at 0.2 per cent YoY for the quarter, indicating a relatively stable store-level performance. Order volumes, however, remained healthy, with order growth increasing 10.4 per cent YoY. For the full financial year FY26, Domino's India reported like-for-like revenue growth of 6.5 per cent, highlighting steady recovery in consumer demand.

(Disclaimer: The above article is meant for informational purposes only, and should not be considered as any investment advice. ET NOW DIGITAL suggests its readers/audience to consult their financial advisors before making any money related decisions.)