Jubilant FoodWorks Limited (NSE: JUBLFOOD) Q3 2025 Earnings Call dated Feb. 12, 2025
Corporate Participants:
Lakshya Sharma — Investor Relations
Hari S. Bhartia — Co-Chairman
Sameer Khetarpal — Chief Executive Officer and Managing Director
Suman Hegde — Chief Financial Officer
Analysts:
Tejash Shah — Analyst
Jignanshu Gor — Analyst
Arnab Mitra — Analyst
Percy Panthaki — Analyst
Aditya Soman — Analyst
Devanshu Bansal — Analyst
Latika Chopra — Analyst
Jaykumar Doshi — Analyst
Presentation:
Operator
Ladies and gentlemen, good day and welcome to the Q3 and Nine-Month FY ’25 Conference Call hosted by Jubilant Food Works Limited.
As a reminder, all participant lines will be in the listen-only mode and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during the call, please signal an operator by pressing star then zero on your touchstone phone.
I now hand the conference over to Mr Laksha Sharma from Jubilant Food Works Limited. Thank you and over to you, Mr Sharma.
Lakshya Sharma — Investor Relations
Thank you so much,. So a very good evening, everyone, and welcome to Jubilant Foodworks Limited Q3 and nine months FY ’25 earnings call for investors and analysts. We are joined today by senior members of the management team, including our Chairman, Mr Shyam S.; our Co-Chairman, Mr Hari; our CEO and MD, Mr Sameer Hitarpal; our CEO of Turkey business, Mrs Lance; our CFO, Ms Sumant. We will commence with key thoughts from our Co-Chairman and turn to our CEO and MD to share his perspectives. After the opening remarks from the management, the forum will be open to question-and-answer session.
A cautionary note, some of the statements made on today’s call could be forward-looking in nature and the actual results could vary from the statement. We will also share the replay and transcript of the call on the company’s website under the Investor Relations section.
I would now like to invite Mr Bhasia to share his views with you. Over to you, sir. Thank you.
Hari S. Bhartia — Co-Chairman
Thank you, Laksha. Good evening, everyone. We — the quarter three financial year ’25 was actually a really defining quarter for the company. With consolidated revenue of INR21.5 billion, aided by a very strong Domino’s LFL growth of 12.5%, we have delivered an exceptional result in-quarter three. This really demonstrates the strength of focused execution of our strategy and the unwavering commitment of our team members.
Our strategic framework built on two pillars is yielding results ahead of the market. First, first, strengthening Domino’s. Multiple initiatives have been taken to strengthen Domino’s business. We transitioned from four to seven region structure in-quarter two last year, this made our operations more agile and enhanced team performance and effectiveness. We revitalized our brand with — it happens only with pizza campaign to win on occasions and expand the pizza category. We redefined the delivery experience with the launch of 20 minute delivery and delivery fee waiver fundamentally enhancing the value proposition of Domino’s. Accelerated pace of product innovation to continuously delight our customers. These initiatives helped us achieve new peaks and deliver a great growth momentum to the business.
In Turkey, Domino’s continues to gain share and expand network. The second pillar is accelerating the path to profitability for emerging portfolio of brands. Coffee is on its way to become top-five cafe brands in Turkey and during the quarter, it achieved a significant milestone by becoming the first emerging brand from our portfolio to surpass 150 store mark. In and we expanded the network and we are equally focused on reaching the desired unit economics and payback periods. We are progressing well on our path. Even in the softer demand environment, we have continued to make investments for store growth and technology and absorb costs to deliver value to customers. We see this benefit in higher like-for-like growth in the Domino’s business. With consumption picking-up, we are confident of our growth journey.
I will now invite Sameer to provide a more detailed perspective on our operational performance and strategic initiatives.
Sameer Khetarpal — Chief Executive Officer and Managing Director
Thank you, Mr Bhatia, and good evening, everyone. Q3 indeed was a landmark quarter for our company, marked by record performance for Domino’s business. This exceptional performance is a testament to focus on-the-ground execution of our strategy and the unwavering dedication and commitment of our teams. From our food parks and stores to our technology and delivery teams, every member of JFL family played a pivotal role in delighting the customers during the countless celebration encompassing not limited to Diwali, Christmas and New Year. Their commitment to excellence fuels our success and positions us for continued growth.
Performance summary. This is a quarter of new highs, not only in revenue but also in same-store growth, store expansion, app traffic, app conversion, customer loyalty, new customer acquisition and highest absolute EBITDA. Group system sales are measure of overall consumer sales across our own and franchise network, which is primarily in Turkey, reached INR24.1 billion, a healthy 6% increase quarter-on-quarter.
Consolidated revenue came in at INR21.5 billion, up 56.1% year-on-year. The organic growth came in at 19.4%, while the rest is on the account of DP Euratia sales not being in the base. Standalone revenue for the first time crossed INR16 billion at INR16.1 billion and up 18.9% year-on-year. Our total store network now comprises of 3,260 stores and net addition of 130 stores during the quarter with 67 net store additions in India and 63 in international markets.
Coming to India segment, Domino’s India delivered an exceptional performance this quarter, achieving highest-ever sales. Led by our own app, FoodTech capabilities, revenue surged 8.3% year-on-year, fueled by a very impressive 33.8% increase in orders. New customer acquisition grew by 55% and we have also started to see the benefit of new customers repeating and compounding happening. LFL sales grew by a strong 12.5% year-on-year driven by strong delivery-led LFL growth of 24.7%. Mature store ADS achieved a new high of less than INR86,000 rupees.
I’m also delighted with the enhanced pace of — pace of innovation, product innovation and proud of how operationally complex products like cheese volcano are being rated very highly by customers and delivered to customers inside and inside the stores and in their homes.
During the quarter, we introduced three new flavors of popular cheese burst range, further enhancing our pizza credentials and cheese portfolio. Learning from US and other Domino’s markets suggest a strong salience of chicken items along with the pizza. We are materially under-indexed on this salience and hence we see as a [Technical Issues]
Operator
Participants, please stay connected. We seem to have lost the line for the management. Please stay connected while we reconnect the line for the management thank you. All participants please stay connected while we reconnect the management line participants, thank you for patiently holding your lines. We have the line for the management reconnected. Over to you, sir.
Sameer Khetarpal — Chief Executive Officer and Managing Director
My sincere apologies, the line got disconnected. And I’ll start from where I believe we got disconnected. I’m also delighted with the enhanced of product innovation and proud how operationally complex products like key volcano are being rated very highly and doing very well on delivery.
During the quarter, we introduced three new flavors of our popular cheese bus range, further enhancing the of cheese. Learning from US and other Domino’s market suggest a strong salience of chicken items along with pizza. We are materially under-indexed on this salience and hence we see an opportunity to unlock this platform. Like pizza, wings and other chicken peast items are sharable and add to higher-ticket and customer repeats. We are patiently — we were patiently perfecting the customer value proposition in South India and now have launched the second range nationally starting at INR99 along with an ATL campaign. We believe this new range will drive incremental location and help us serve new customers.
Our digital engagement continues to grow quarter-on-quarter with nearly 14 million monthly active users on Domino’s India app. App install also saw an impressive 28.6% year-on-year growth, reaching around 12 million. To help you further appreciate the scale of our rider management platform, in December, we had 46,700 monthly active riders, which was up by 50% from last December, helping us meet high customer demand and improved delivery performance. This underscores the power of our digital platform to manage variable peak load and allowing us to deliver under 20 minutes.
We are progressing well against our network guidance. We opened 60 net-new stores for Domino’s in India this quarter and entered 19 new cities, ending with a total network of 2,139 stores now serving customers in 466 cities. The competitive intensity continues to be strong, along with inflationary pressures, the gross margin came in at 75.1%, lower by 160 basis-points year-on-year on account of higher food cost for some of our new product launches, inflation and high competitive intensity leading to higher discounting during Diwali and big days and the — an increase in delivery charges as the demand for delivery cost as the demand for riders increased during peak season.
Standalone EBITDA reached INR3.1 billion, up 10.6% year-on-year with an EBITDA margin of 19.4%, lower by 145 basis-points year-on-year and flat quarter-on-quarter. Quarter. Importantly, we are getting the leverage as indicated by the pre-IndAS 116 EBITDA at 12.4% is improved continuously since the last four quarters and is higher by 70 basis-point quarter-on-quarter. While we do not separately disclose — disclose brand-wise EBITDA, we would like to mention that the like-for-like growth is providing leverage to Domino’s P&L, which registered a mid-teen growth year-on-year and despite free delivery and growth investments.
Moving to international segment, DP Eurassia, i.e. operations in Turkey, Azerbaijan and Georgia. System sales reached INR7.5 billion with Domino’s Turkey contributing to INR6.7 billion, followed by coffee system sales at INR801 million. I am excited to share with you that DP Euratia revenue crossed a milestone of INR5 billion for the first time, registering a strong 9.5% quarter-on-quarter growth. We believe the economy in Turkey is headed in the right direction as the government has brought down inflation from 64.9% a year back to 42%. However, this has also led to lower wage revisions in high inflationary environment, wage revisions trigger an immediate consumption boost. Despite these headwinds, the team in Turkey delivered comparative growth. Domino’s Turkey like-for-like sales came at minus 3.2% on a base of 18.9% LFL, which was same quarter last year. Coffee like-for-like sales grew at minus 2.6% and last year this same quarter number was at 27.7%. Basically high basis explain a negative LFM.
For the nine-month period, DP revenue reached INR14.3 billion with an EBITDA margin of 23% and PAT margin of 7.2%. We have achieved a significant turnaround in Sri Lanka with record revenue of INR213 million in Q3, up 65.4% year-on-year. The strong performance is entirely driven by same-store growth as we have strategically paused network expansion to focus on optimizing the existing store. Key initiatives such as store relocation, exciting new product launches and local — and focus on local store marketing and campaigns have fueled this impressive growth. We also went on TV for the first time.
In Bangladesh, the revenue was INR173 million in Q3, up 38.6 year-on-year, scaling to a new record. For the first-nine months, consolidated revenue came in at INR60.4 billion, up 48% with an EBITDA of INR11.8 billion, up 42% year-on-year, translating to an EBITDA margin of 19.6%. In closing, we are delighted with our Q3 performance, which has helped us — which has helped us elevate the YTD trajectory of the business and remain focused on technology delivery innovation in food and winning store-by-store pizza by pizzas. We believe single-minded focus on having technology and fast delivery capabilities are continuing and are contributing to ahead of market performance. These are strategic moats for us.
We will continue to invest ahead of the curve and we see momentum build from Q2 to Q3 and Q4 as new acquired consumers begin to compound and come back to buy more as frequency has also improved.
With that, I request the moderator to commence the Q&A session.
Questions and Answers:
Operator
Thank you very much. We will now begin the question-and-answer session. Anyone who wishes to ask questions may press star and one on the touchstone telephone. If you wish to remove yourself from the question queue, you will pressing star and 2. Participants are requested to use handsets while asking questions. Ladies and gentlemen, we will wait for a moment while the question queue assembles. The first question is from Tejas Shah from Avendus Spark. Please go-ahead.
Tejash Shah
Hi, Sameer. Hi, team. Thanks for the opportunity and congrats on a good set of numbers. Sameer, the first question is, our delivery is gaining traction and then doing phenomenally well. But despite multiple interventions that you would have done in last quarters, last few quarters on dine-in, that isn’t responding as expected. So any insights on that, any challenges or competitive landscape which is different from delivery here.
Sameer Khetarpal
Yeah, no, I think the Tejas, firstly, I don’t think it is. I will not say it is not responding. It is actually responding our in-store lunch average weekly orders are highest in the last 2.5 years. So as you would recall, we have launched a INR99 four-course meal available only inside the stores during lunch hours and there are many stores where I get customers lineup to get it and after 3 PM there is little bit of a pushback from customers why it is not available post 3 PM. So dine-in, so if you look at our on-premise sales, there are two components, customers who come in to eat say get their pizza sit-down and then leave and there are customers who come in and do a takeaway. The takeaway channel or the customers coming in for takeaway, that has actually moved to completely delivery, understandably source and deliveries free. As the bases get corrected, we are very confident delivery will also — the dine-in will also improve. In fact, our — the store experience, the new stores that have come in with higher-quality of materials and focus on-store experience, greetings, all that is paying-off, we see it in our numbers. I think it’s a matter of quarter or two you will also start seeing it.
Tejash Shah
Sure. Very clear. And second and last, the LFL and margin relation here. So LFL recovery, just wanted to understand, is there a technical also here from here on as most of our split stores which were not part of LFL Club for last two, three years must be returning and those are usually good locations which got split. So — and hence, we are seeing very sharp recovery in LFL, but coming to that margin expansion is not happening because of — or there are any other reasons because we expected with this LFL much higher margins in this quarter.
Sameer Khetarpal
Yeah. I think it’s a — see the overall demand scenario is muted, right? So I think with that, we have taken four conscious calls to expand ahead of the market to do to get market-share and acquire new customers. Now these four interventions are falling. Firstly, I give more food through cheese, cheeseburg and volcano pizza to customers. So therefore, we are engaging on with Gen Zs and we are acquiring new customers. Second intervention was increase our marketing investments in fixed advertising above-the-line investments. Third is the — we don’t want to lose share on aggregator platforms and therefore, the — we are matching the comparative discount that is that is happening on that platform. And fourth is free delivery, right? And partly we’ve recovered through packaging charges and internal tightening. So all these four are very conscious choices, right? And it is investment for growth and investment for new customers that we are acquiring. At any time, I think we are very easy to kind of dial bit down and let that flow. But I want to assure you, Domino’s P&L is actually getting the leverage, maybe slightly lower than what we would like, but these are all investments for growth and you’ll see compounding happening and just flowing to the bottom-line. We are very clear about how and when this flows to bottom-line.
Tejash Shah
Yeah. And if I may squeeze in one last, Popeye, four store addition in a festive quarter looks underwhelming. So any plan of scaling up there.
Sameer Khetarpal
Yeah. So I think we’ve drawn up a list of top 100 locations and it is a matter of finding those locations. So let me assure you, the average daily sales for Pop is improving and margins are improving, capex is actually materially low from where we started. I think it’s just — we don’t want to — getting the location is a one-way door, right? If you get a wrong location, then you have to like live with it for a long-time and therefore, we are very — we can open 100 stores as long as we get those 100 locations. And some of the locations like that we opened like Pacific Tegor Garden right in Delhi, right? These are testimony of that outstanding locations and the stores are exceeding our expectations.
Tejash Shah
Okay, perfect. Very, very comforting. Thanks and all the best for coming quarters.
Sameer Khetarpal
Thank you. Thank you, Tejas.
Operator
Thank you. Next question is from Jignanshu from Bernstein. Please go-ahead.
Jignanshu Gor
Hi, Sameer. Congratulations on a strong quarter. I think I had one question on the gross margin. So what has contributed to that? And do you expect improvement in gross margin as we go-forward, either in the form of price increases or in terms of premiumization of installed customers? So how would you think about that?
Sameer Khetarpal
Yeah. I think internally, we have — we have targeting 100 basis-point improvement of gross margin, right in the next two to 3/4, right? That’s what we are planning to do. And there are named initiatives on — on correction of vestages, on correction of the other like packaging material, etc. So there are multiple initiatives on that one. And we’re also seeing where we can tighten the discounts, right? And so definitely it should improve in my opinion. The reason is very simple on gross margin actually. It is — we didn’t want to lose share. In fact, we have gained share as you can see from the numbers. Yeah, and it’s a very conscious choice. And then part of it is also delivery because there is a — there is a base you’re probably comparing quarter-on-quarter, but there is — this period generally has more discounting, right, because everybody is on-air, they’re giving deals. So part of it is festive period also, which should go away starting obviously January.
Jignanshu Gor
Okay, fair. Okay. I think the second question was in a way similar to the previous one on four pile, right, that we had a medium-term target for 250. So is it fair to say we are figuring out a perform — our product market fit there or do you think it’s a — like what driver are you looking for to determine that this is now a growth story versus still trying to find where our positioning within the QSR space.
Sameer Khetarpal
So I think we — to me like there is definitely no challenge on customer value proposition, product market fit. I think there is a huge headroom driven by one large comparator in this space. So I think it’s a — it is purely about execution. So India is a 70% chicken eating market. We started in South and therefore that’s the right place to start. That’s where the densest of the market and highest ADS per store is there. We are present in Kerala, Tamil Nadu, Karnata, Telangana. These are the right places to be. If you come to NCR, we are looking to launch in Mumbai. So it is about finding the right location. We fixed a lot of unit economics in the last three or four months. We expanded the team. I have already put in a team that will carry me through to from here to INR1,000 crores. So absolutely no bearishness on the on the outlook for Poppers, we just have to find the right location. That’s all. And if we find 20 right locations, we’ll build 20 stores. And we are in several such discussions in — with all the right properties that we want.
Jignanshu Gor
Okay, fair. Are you looking at Popeyes also as a largely delivery-led model or do you think dine-in is where that will be focused on.
Sameer Khetarpal
See, the learning from rest of the world and Domino’s is that on high-street, when I look at some of the great competitive competitor brands who are more dining focused, their dine-in or on-premise business is declining. And delivery tailwinds are universal and worldwide. So what we’ve done, we have — we have refitted our store size to about 1,200 square feet on high-street. As you know, we have our own app, our own app salience is growing. And like Domino’s we deliver, okay. So we are building the business. So delivery will grow, right? That’s universal truth. So we have to be present in the right locations in malls where there are footfalls and we have to be in the right locations with the right capex model, delivery-led stores in high-street. And both we know-how to do it. And second one is the Domino’s playbook and we are seamlessly copying over there.
Jignanshu Gor
Okay, fair. I’ll let me circle back for more. Thank you so much, Mr Sameera. Thank you very much. All the best.
Operator
Thank you. The next question is from Arnab Vitra from Goldman Sachs. Please go-ahead.
Arnab Mitra
Yeah, hi, Sameer and team. And again, congratulations on a great set of numbers. Now that we’ve seen good evidence of your strategy is working out in terms of consumer traction, would it be reasonable to expect these levels of to sustain going ahead or are there some base effects and other things which we should be cognizant of in terms of how we expect this to move ahead? And also a linked question to this is, as you rightly said, you’ve invested a lot to get this growth. Would you want to like dial back that investment a little bit, focus on margins and therefore that could be a reason why the LFL could be a tide lower than what you’ve delivered this quarter going ahead?
Sameer Khetarpal
I think all sets of great questions and the other — and that’s a constant balancing act we have to do as operators of the business, right? And when we realize the like-for-like growth for the entire industry is banking, we had to look at for some self-help measures and we went all guns blazing, right? And now we are seeing that growth. We are now balancing in terms of margin should also flow-in. We should get the leverage and trust me, the teams are focused on it. In terms of momentum, right, we’ve put a lot of fuel into — into the engine. So it is growing. We do see growth momentum continue from Q2 to Q3 and Q4, right? So from that perspective, I feel very good about the growth story. Margin story, we will correct. Like I said, I don’t really worry on it. What will happen in Q1, Q2, Q3, right, some could be a base effect, but I don’t think because delivery growth year-on-year is not a base effect, right? The way the — some of the stores, even after splitting we see they are coming back and getting into nearly 50 odd new cities in last 3/4 is not a base effect. And in fact, I feel-good about good about this. And we are — and this — and absolute profit is increasing, right? So it is not that absolute profit is coming down. So our EBITDA standalone EBITDA grew by almost 11%, right, despite investments in new brands. So underlying business remains healthy, margins we can always come in, but I don’t want to take-off the — take the foot of the pedal on growth. As if as the momentum picks up, I know this will flow-through into the bottom-line.
Arnab Mitra
Thanks for that detailed reply. My second question was more of a bookkeeping question. So this — we have seen a gap in the sequential trend in the pre-Inders and the post-IndAS EBITDA margin. Could you just help me understand what has driven the trajectory change? And is it going to continue going ahead given how the accounting works or this should like start converging the trajectory — the direction should also start converging?
Suman Hegde
Hi, Arnav, Suman here. Let me take that question. No, so it is actually a very accounting point-of-view, right? We do understand in 116 the rental costs are above-the-line. And rent costs are not increasing in-line with the kind of growth we are seeing. So if you look at the differential, it’s predominantly all coming from the leverage impact that we are not seeing in the post IndAS numbers on account of rent leverage coming through in the P&L. It’s 100% that itself, right? So if you ask me my view, if these kind of growth continue, which is growth ahead of rental growth in the market, which at this point in time is lower than where our trajectory on growth is, these won’t be — we might see some of these headwinds going-forward as well. Difficult to predict, of course, because it is an equation between two growth numbers, but this is a normative headwind. And hence as a business, we focus more on the operational EBITDA, which is the number because I think that’s the right metric to chase.
Arnab Mitra
Sure, that’s very clear. Thanks. Thank you for my time. All the best.
Operator
Thank you. Next question is from from IIFL Securities. Please go-ahead.
Percy Panthaki
Hi, sir. I just wanted to understand in the India business, what is the Y-o-Y decline in the average bill value and how much of this is due to the delivery charge waiver and how much of it is due to downtrading or any other impact?
Sameer Khetarpal
Yeah. So I think it is — we don’t disclose the average ticket size. It is fair to assume the entire decline is through delivery charges, partially offset by packaging charges. So the Domino’s India revenue grew by 18% and the order grew by 34%, right? That should give you some indication. It is largely delivery, right, but it is also leading to 55% new customer growth, right? I think if you look at these three in tandem and this one customer acquired, it is up three times in a year. So that compounding we are seeing in our — in our like numbers because now this is the 4th-quarter of — of free delivery. So the customer that we acquired in Q1 of this quarter, now are we seeing that those coming three times in a year? The answer to that is yes. So therefore, I’m very confident about this investment and that to me will give us the real leverage.
Percy Panthaki
Okay. So the AOV decline is only because of the delivery charge waiver, there is no downtrading and that could be a third reason. There could be additional discounting in addition to delivery charge. So is that also one of the reasons because ’19 versus 34, that differential is quite huge.
Sameer Khetarpal
Yeah. So I think it is there, but not too much. So it is largely delivery led and that is the only reason. We also had a — so what is downgrading, right? So typically, we used to define downtrading if a customer eating a medium pizza goes to a regular pizza and a regular pizza goes to a pizza mania, right? So that’s how we define downtrading.
On the reverse, we are actually seeing increased salience of core pizza ranges, right, moving — our customers are moving away from pizza, right, and free delivery allows them to order more and which we want customers to order more if one pizza is over, they want to get another pizza that it breaks the cycle of ordering more. So I think it is largely an amount of fee delivery.
Percy Panthaki
Got it. And if I look at it sequentially, that is 2Q versus 3Q, in 2Q itself this year, was the delivery charge completely waved off or it was only partial and only in 3Q you have had the full impact of delivery charge wave off?
Sameer Khetarpal
No, it was — it was waved off during IPL last year, which was end of March 2024. So we are — we are almost nearing the anniversary of it. So Q2 to Q3, the delivery charges have been the same.
Percy Panthaki
Okay. So the sequential decline in gross margin of 100 basis-points is mainly because of additional discounting and inflation and got nothing to do with any other factor.
Sameer Khetarpal
That’s correct.
Percy Panthaki
Okay. Understood.
Sameer Khetarpal
It’s basically that we invested in cheese, right? That’s what we are saying like because we gave more cheese per product and right and that is the lever that we always have, right? So we can always — and we can always reduce the discount on those products.
Percy Panthaki
Understood. Secondly, I wanted to just touch upon international in the sense that if I do a consol minus standalone net profit, it is about INR9 crore for the quarter and about INR2930 crore for nine months put together. So that’s the INR30 crore is about the net addition from the international business post the funding cost of the acquisition, et-cetera, etc. So how do we look at this number going ahead into FY ’26? Should we like grow it largely in-line with the international top-line or is it going to have some other drivers in addition to that?
Sameer Khetarpal
So there are no drivers. In fact, the Nine-Month numbers will give you an indicator of how strong the business is. We don’t see anything, any surprises over there. In fact, teams are working in this environment to have a better operating cycle and release cash from the system. We have said that by second-half of calendar year, ideally, we should also — they should also give them — give some dividend to us. So I think there is absolutely nothing over there, but I’ll let Suman give you more specifics.
Suman Hegde
Hi,. So just on the international business, you’re right, I think in-quarter three, we have seen a bit of an aberration there. Now we need to understand, I think we do Turkey goes through hyperinflation accounting, right? So there are a lot of inflation adjustment accounting increase, which happens. So quarter-on-quarter, we will see some variance, right, what — and hence, Sameer alluded to the Nine-Month number, which is more representative on how the underlying performance of that business is. So full-year, like you asked, it will be more in-line with the revenue growth, which will come through where how you should estimate the profit growth to happen. Margins, of course, there could be slight improvement or flattish numbers. We don’t — we are not estimating any declining margins coming through. But because of the nature of the business and the volatility in the accounting standards within Turkey, quarter-on-quarter we might see some aberration.
Percy Panthaki
So even Nine-Month basis, even Nine-Month basis is about INR30 crore difference between standalone and consol net profit. So this is a tad lower than what we would have expected a year-ago at the time of the acquisition, right?
Suman Hegde
No, it is not actually lower than what we had expected at the time of the acquisition. Still, if you look at Turkey from a PAT margin perspective, it is highly-accretive to where India standalone margins are and that continues to be the case. Of course, we saw a bit of an aberration on Bangladesh business because of where the improvement was being seen in the overall profitability, which took a hit because of the disruption on-the-ground. But if I look at Sri Lanka, that has improved its margin status and even Turkey is holding on or just getting slightly better on the PAC at a PAT level, right? So full-year, we should not see any deviation on that. And as well — in fact, it’s doing better than what we were expecting in terms of expectations. Economy is strengthening. The business underlying metrics are improving, be it in terms of their inventory levels, which is ensuring that they don’t have a higher-cost coming out when the inflation accounting comes in next month-in P&L, their interest costs are coming down, their debt overall is reducing. So healthy shape of the business as the economy also recovers there. But yes, there will be variations quarter-on-quarter. But we can explain to you offline on how it works. No real reason not concerns.
Sameer Khetarpal
I think that in summary, the Turkey business case is ahead of plan, right? So I think the performance is ahead of the plan what we had in this last year.
Percy Panthaki
Got it. Got it, sir. Thank you very much. That’s it from me and all the best.
Sameer Khetarpal
Thank you,.
Operator
Thank you. The next question is from Aditya from CLSA. Please go-ahead.
Aditya Soman
Hi, good evening. Sir, just one question from me. In your presentation in the sort of mature stores number, that’s actually dropped for the last two quarters. So does this a function of just higher store splits?
Sameer Khetarpal
I think you are at least when you look at the mature stores, it is — I don’t know which maybe you are referring to last — it is 85,959 in Q3 2025 and last quarter was 79,467
Aditya Soman
No, no, not the ADS, the number of mature stores. So the number of mature stores compared with what you reported in 2Q and then 2Q compared with what you reported in 1Q. Each quarter there has been a sequential decline in the number of mature stores?
Lakshya Sharma
Yes, yes, Adity, it always happened. In-quarter one, we have the highest number of store count. It progressively comes down by quarter-four. In-quarter one, again of FY ’26, you will see a higher store count.
Aditya Soman
Understand. So. So we’ll just see that jump and that could — that will lead to EDS coming down again or because last two years small
Lakshya Sharma
Store numbers as we’ve reduced the number of store split, the impact of reduction in the restaurant base from to 1,591 is not material. So we are not seeing like a — we are not seeing a drop.
Aditya Soman
Understood. Very clear. So there should be no change in that ADS number also, right? Next year when we see a bigger jump-in the mature stores that ADS should also continue growing because largely ADS.
Sameer Khetarpal
Yeah. I think the ADS is rock-solid. New stores are opening at a higher ADS is than ever before. So I’m not worried on that metric. It’s more accounting of what we include in a mature store or not. And we’ll probably next time onwards, we’ll give you a better footnote on the quarter-on-quarter mature store a deal drop also. So that the calculation is very clear.
Aditya Soman
Fair. Thank you. Thank you very much. That’s all.
Operator
Thank you. Next question is from Devanshu Bansal from Emkay Global. Please go-ahead.
Devanshu Bansal
Yes, sir, hi, thanks for the opportunity and congrats on a very good LFL pickup. So your aggression and market-share gain is obviously not a good news for smaller competition that sort of popped up over the last few years. I just wanted to check your views on continuation of this aggressive strategy of yours? And are we also sort of seeing initial signs of consolidation in the marketplace?
Sameer Khetarpal
Yeah, no, I think we control is our investments, our actions and every company wants to grow market-share, right? So I think with that, I don’t want to step away from driving growth because growth is the — is the best help that you can give to the business and also in terms of margins and cash ultimately. So in terms of competition, see, this is how see is when I just remove myself from my current position, but the growth is definitely muted, right, for the industry and listed players and the large players to me are actually doing better than some of the unlisted and smaller medium chains. There is a big question mark-on dark stores, right? So I do expect with this kind of an environment, business moving largely towards delivery and competition of speed, whatever 10 minute, 20 minute delivery increasing, some of these business models are under threat, but that might more take as a — somebody who works in this industry. And that consolidation opportunity to me is sooner than later.
Devanshu Bansal
Understood, sir. Very clear. Sir, my second and last question I sort of wanted to build-on Percy’s question the difference between order growth and revenue growth in Domino’s has increased over the last 3/4, right? So it was 7.5% in Q1, which increased to about 12% in Q2 and now it is 15% in Q3. So what is leading to continued drop-in realizations for us because delivery impact was there in all the 3/4.
Sameer Khetarpal
Yeah, I think it is more delivery growing faster, right? That’s the only thing which is happening over. The channel mix is moving towards delivery. And one thing that you must note, when we did free delivery, we moved to minimum order value of about INR200 rupees on INR99 rupees. Earlier, there were higher delivery charges before INR350 rupees. So we change that purposefully. And therefore, you see the growth in new customers on account of that. That’s the only thing. Otherwise, there is no downtrading happening. It’s not that we are selling more than any other or we are selling one single item. The items per order is not really declining. It is largely the customers are — have a lesser threshold in terms of ordering. So barrier has been broken. And delivery growth.
Devanshu Bansal
Just a follow-up here because the barrier or maybe the threshold is lower. So from a margin perspective, does that sort of hamper our model or we will still be able to sustain our margin? Delivery cost for the order will remain same, right?
Sameer Khetarpal
Yeah. I think the — this is how — see, there is — to me, I see this as an investment for growth. Right now, once you are investing for growth, the question to ask is how will you recover? We recover on two fronts. One is when the compounding happens, SSG continues, right? And second is the further tightening of cost, right? So we — like I said, we have a name program on improving margin by 100 basis-points. We are looking at rentals very closely. We are looking at manpower and we are getting the leverage in manpower. Where we are not getting the leverage and there is a higher-than-expected headwind, it is the delivery cost because delivery of the channel is growing, which puts more pressure on riders and therefore, to keep the same service-level of nearly 20 minutes, we are actually paying more to the riders during the festive season. So that is the only headwind which is also will get corrected in my opinion as we find newer ways of working.
Devanshu Bansal
Understood. Sir, just last one small question. So we have launched chicken products after sort of experimenting in the. So I just wanted to check if you could qualitatively share what was the kind of ADS pickup for these products that we sort of saw in the South region, which gave us sort of confidence to sort of launch it from India.
Sameer Khetarpal
Yeah, I think we — I’ll tell you what was the thesis and give us like time till this quarter because we went on-air only 10 days ago. With the first time like Domino’s coming out and ATL campaign focused on chicken freez. So these — this is how we see our data. Among the world and also in India, North India has the highest weekly sales of stores. Yet our share in pizza category on aggregator is lower. Versus South where the throughput per store is lower than the north but the share is higher. So that explains that the customers are looking for other products along with pizzas or they are not eating pizzas as much as they probably eat-in. And that is the insight once we do. They are looking for more non-vegetarian options and they are looking for more bone-in chicken, therefore we launch wings. We are looking for a rice along with chicken, therefore we launch meals. They are looking for crunchy non-vegged bites. Therefore we launch poppers and boneless wings. So I think we have — we heard the consumer, we experimented actually South is after the — after the launch has become the fastest-growing or one of the faster-growing regions among the seven regions that we have.
Devanshu Bansal
Understood, sir, very clear. Thanks for taking my questions.
Operator
Thank you. Next question is from Latika Chopra from J.P. Morgan. Please go-ahead.
Latika Chopra
Yeah. Hi, and team. Thanks for the opportunity. My first question was, your new customer growth is very strong.
Operator
Latika, we can’t really hear you very clearly. If you are on a hands request you to use the handset.
Latika Chopra
Is it better?
Sameer Khetarpal
Slightly better, Natika, if you can just speak louder and maybe a little slowly, we’ll try and catch you what you’re saying.
Latika Chopra
Sure. Thanks, Amit. So I — my first question was around new city additions. You have added almost 60 cities over the last four quarters and you have added this year in nine months almost 145 new Domino stores. I’m just trying to understand how many more cities potential you see to expand into and how does that feed into your store addition ambition on an annualized basis over the next three, four years? Considering you’re moving more towards pre-focused kind of you know your next?
Sameer Khetarpal
Yeah. So I think we — firstly, we are seeing opportunity on both, right? And I quote this example a lot. When I joined couple of years ago, we had about 30 odd stores in Gurgaon. We are now reaching nearly 50 and we believe we can add another 20 more, right? So densification as cities expand, as new shopping areas, new, new congregation points like movie halls and other things come up, there is always more opportunity, including metro stations and highways, et-cetera. So firstly, we are seeing tremendous opportunity in the city where we are fully covering like.
Secondly, there are cities like Ahmedabad where we don’t cover the full city. There are enough five spaces and these are not only district to Ahmedabad, it is in and Gangpur also. And then the third piece is new cities, which is whether it’s a or a or a Badaon or a, right? So I think definitely we see more-and-more opportunity of those. And we are present in nearly 500. We believe there are 500 other cities that we can get to. And we are still present in the biggest like or the district center, right? And these are — and these — some of these districts are like more than 7, 8, 10 lakh population. We have not gone to the biggest right over there. So for context KFC in China is present in 10,000 cities. 1,000 cities, my bad, 1,000 cities. So there is definitely room, room to get to more.
Latika Chopra
And Sameer, is it any sense, I don’t know-how you cut it, whether the salience of top-20 cities in your revenue mix, how has that behaved over the last five years for you. Has that materially changed? If you can share some color on that? And also in terms of profitability metrics across cities, new cities are not margin-dilutive for you, necessarily
Sameer Khetarpal
Accretive — actually is slightly accretive in percentage terms, lower in absolute profit because their costs are also lower, dine-in takeaway is higher in these cities, delivery salience is lower. So — but throughput is lower. So we are — I think the — I think are the best question to ask, is the payback period lower in these cities, right? So the answer is no. So we continue to maintain two, 2.5 years of payback period. As long as that is coming, I think that’s the mother metric that we chase.
Latika Chopra
And of larger cities, anything that you have to share? How will you track?
Sameer Khetarpal
I think I think we are expanding again like how we run our new business, like I said, for, same thing the team from Domino’s have done, they have a list of thousand stores that they want to open whatever in the next three, four, five-year timeframe, right? So they are — so as long as they get those locations, they will continue to open. So these 1,000 locations are — some of them are in places like like Gurgaon and and some of those these are in Bagaon and Latur and all the world. So we are — so wherever you find the right location, we’ll open the store.
Latika Chopra
Sure. And the second thing that I wanted to check for that aggregator salience in delivery mix now because you talked about more promotions on this channel and on these platforms as we wanted to grab more share. But at the same time, your own app metrics are also fairly healthy. So could you give us some color on how this mix is trending and what kind of differentiation is there in terms of profitability metrics between own versus aggregator platform? Thank you.
Sameer Khetarpal
I will not answer that question because we — I am here to serve customer you were speaking with has put you then, can you hear us?
Latika Chopra
Yes, I can hear you.
Sameer Khetarpal
Sorry. So no, we see we refrain from giving mixes. Having said that, our apps are going very healthy. In fact, when I came in, I had put the entire engineering team just to focus on Domino’s app. And as a result, we have the most immersive experience forpizza customers who are looking for pizza. So you will see videos of pizzas, you will see easy and easy user experience or user experience to upgrade, to add more products, add side items, it is built for pizza. And over the years, we’ve made it very topical. We celebrate from Valentine’s Day to landing of on moon, right? So we have become very topical and relevant to customers. And then the CRM, built-in CRM helps customer come back. So that piece is working out better than our expectations. And like I said, aggregators, we want to — we see them as ecosystem partners. We see them great terrific channel partners and it’s a very competitive landscape over there and we work hard to maintain our share or improve our shares on aggregators. So it doesn’t matter as long as we are getting customers, right? That’s how I see and delivery is a worldwide tailwind and with our own rider fleet of 46,000 riders, a network that is ever-expanding, able to give and give hot pizza in 20 minutes. Actually that’s not the most important thing that I worry about.
Latika Chopra
Understood. Thank you so much and all the best for.
Sameer Khetarpal
Thank you,.
Operator
Thank you. Next question is from Jay Doshi from Kotak. Please go-ahead.
Jaykumar Doshi
Hi, thanks for the opportunity and congratulations on a great acceleration in growth. I’ve got two questions. The first one is, in this quarter, we saw about 18% top-line growth and 14% EBITDA growth. Now how should we think about the gap between revenue growth and EBITDA growth on a pre-IndAS basis going-forward over the next two, 3/4, if you continue to stay at a similar 15% plus system sales growth levels.
Sameer Khetarpal
Internally we look at like this in the following manner, we tease out the Domino’s portfolio and see is that growing and like we mentioned in our comments, is it in mid-teens and improving? So that’s how we see that particular business. On the other business, we see the overall drag to the P&L and is the unit economics improving. So these are the trade-off factors, allow us maybe one more quarter because let this stabilize the — because we launched delivery in March, maybe by next quarter, we’ll have a much more scientific answer on that there to be — otherwise, I’ll be more hazarding a guests at the business and we’ll also do a better calculation to answer your question.
Jaykumar Doshi
Sure. Second question is, if I do some back of the enveloped calculations, your dine-in order growth is about 30%, but dine-in revenues have declined by about 2%, which means that there is 25% decline in average order value for dine-in where there is no delivery fee waiver impact or anything of that sort. And if I actually were to look at absolute number, it means your dine-in average order value may have dropped by INR125 or somewhere in IN 100, INR125 range. So this incremental dine-in orders that you are sort of getting, is it — even if I assume all of that is Thali or 49
Sameer Khetarpal
No, not like that. No, it’s not like that. Thali is only like only 11 to 3:00 and it’s a part, it was a business with a very low-base. So that number, while it is growing healthy, right? I think we — see on the — inside the store, you have to look at dine-in and takeaway. Customers who come in, take the pizza, eat there and leave on customers who just come in to take the pizza to their home. So that is a takeaway business. So dine-in business is growing very healthily and you will see improvements coming in the coming quarters on both dine-in plus takeaway as a business. And this is only the takeaway business that is kind of declining. So there is a sub-channel mix that is there between — in what we call as a dine-in takeaway business. So there is no — there is no massive — in fact, the decline in — like you are saying, the decline in average ticket size inside the store is very marginal.
Jaykumar Doshi
Okay, maybe then I’ll take it offline. Thank you so much and good luck for the next quarter.
Sameer Khetarpal
Thank you.
Operator
Thank you very much. We’ll take that as the last question. On behalf of Food Works Limited, that concludes this conference. Thank you for joining us and you may now disconnect your lines.
Sameer Khetarpal
Thank you. Thank you all.