While consumer demand remained soft and festive overlaps hurt out-of-home dining, Jubilant delivered strong revenue growth—something its peers struggled to match.
During the September quarter, the company reported ₹2,340.15 crore in revenue, up 19.7% year-on-year, while net profit doubled to ₹194.6 crore.
Jubilant’s standout performance in a struggling $27.8 billion QSR market, said to reach $43.5 billion by 2030, underscores how the industry’s centre of gravity has shifted. A convenience-first delivery model, aggressive value pricing and a large loyalty base are emerging as the real drivers of growth at a time when dine-in remains sluggish and consumers increasingly seek speed and convenience popularised by 10-minute quick commerce platforms.
“Domino’s has the biggest mind share in delivery—people associate it with reliability and speed,” said Satish Meena, founder of Datum Intelligence, a market intelligence firm.
“Domino’s India delivered 9.1% same-store sales growth despite the onset of Navratri,” said Sameer Khetarpal, managing director and CEO. He credited the delivery-led model and product innovation for helping the company outperform the market. Many Hindus fast during the nine-day Navratri period.
The company, which operates Domino’s Pizza, Popeyes and Dunkin’ Donuts, added 93 new stores during the quarter, including 81 Domino’s outlets, expanding its footprint to nearly 3,500 stores across India and international markets.
Others feel the heat
The rest of the QSR pack had a far tougher quarter.
Westlife Foodworld (McDonald’s west & south India) posted a 3.8% revenue rise to ₹642 crore, with consumers cutting back on eating out. While it maintained restaurant operating margins of 19.2%, higher input and delivery costs offset efficiency gains.
“Q2 was marked by continued softness in discretionary spend and eating-out frequency,” said Saurabh Kalra, managing director of Westlife Foodworld.
Devyani International (KFC, Pizza Hut) grew revenue 12.6% to ₹1,377 crore, but margins weakened due to slower dine-in recovery and rising aggregator commissions.
“Both Shraavana and Navaratri falling in the same quarter impacted out-of-home consumption,” said Ravi Jaipuria, chairman of Devyani International. The overlap of the two fasting periods led to a drop in meat consumption and muted demand for KFC’s chicken-heavy menu.
Sapphire Foods (KFC, Pizza Hut) slipped into a ₹12.8 crore loss, with Ebitda margins falling 230 basis points to 14.3%.
“Consumer discretionary spending remains constrained; nothing has improved materially,” said Sanjay Purohit, chief executive officer of Sapphire Foods. Same-store sales growth for KFC fell 3%, while Pizza Hut revenue declined 6% year-on-year.
Sector weakness runs deeper
The September-quarter softness across India’s QSR sector was partly seasonal — impacted by festive overlaps, rains, and muted consumer spending — but it also reflected a broader macro weakness, according to a Bernstein report dated 6 November 2025.
“High delivery mix is eroding margins since delivery economics are less profitable,” the note said, adding that structural improvement in KFC and Pizza Hut economics will need more than promotions and cost tweaks.
Across the country, QSR chains leaned on heavy discounting and value-led offers — such as McDonald’s ₹69 McSaver combos, KFC’s “9 for ₹299″ buckets, and Pizza Hut’s “Buy 1 Get 3″ deals — to keep customers coming in. While these helped defend market share, they came at the cost of profitability, compressing margins further.
Executives said rising aggregator commissions and slower dine-in recovery also hurt margins. The dependence on platforms such as Swiggy and Zomato added to costs, while dine-in, typically a higher-margin business, remained below pre-pandemic levels.
Why Jubilant kept winning
Jubilant’s biggest advantage was its fully owned delivery network, which insulated it from aggregator commissions and helped it control pricing, speed and experience.
Its “Free Delivery” offer, 20-minute delivery promise and a 40-million-member loyalty programme kept repeat orders strong.
“Even if others are doing 30-minute delivery, the first brand that comes to mind is Domino’s,” said Meena.
Meena also said that Domino’s ability to keep pizza “affordable and exciting” helped sustain demand. “They have worked a lot on pricing, launching pizzas at ₹149 or ₹199, which has brought in volumes. At the same time, they have added new premium options, including Korean and larger-sized pizzas, to keep the menu fresh,” he said.
Pizza, he added, remains one of the most ordered items on food-delivery platforms, giving the category resilience even in a weak consumption environment.
Optimism builds for the December quarter
QSR operators expect the December quarter—traditionally strong for food services—to bring relief. Jubilant’s Khetarpal said October sales were already “ahead of plan” and expects strong festive momentum to sustain double-digit growth in the second half.
“Spending on food and QSR doesn’t taper off after Diwali,” Meena said. “The season extends till New Year, with higher mall footfall, travel and social gatherings driving consumption.”
Westlife Foodworld’s managing director, Saurabh Kalra, also sounded upbeat, noting that “the festive quarter typically sees improved consumer sentiment and better store footfalls,” aided by new menu innovations and value-led offerings.
Even Devyani International, which bore the brunt of back-to-back fasting periods in the September quarter, said demand should recover as consumption normalises post-Navratri.
The promoters of HT Media Ltd, which publishes Mint, and Jubilant Foodworks are closely related. There are, however, no promoter cross-holdings.
