Jubilant FoodWorks Limited (NSE: JUBLFOOD) Q4 2025 Earnings Call dated May. 14, 2025
Corporate Participants:
Lakshya Sharma — Head of Investor Relations
Hari S. Bhartia — Co-Chairman and Director
Sameer Khetarpal — Chief Executive Officer and Managing Director
Suman Hegde — Executive Vice President and Chief Financial Officer
Analysts:
Vivek Maheshwari — Analyst
Tejash Shah — Analyst
Jignanshu Gor — Analyst
Sheela Rathi — Analyst
Nihal Mahesh Jham — Analyst
Percy Panthaki — Analyst
Ashish Kanodia — Analyst
Shirish Pardeshi — Analyst
Presentation:
Operator
Ladies and gentlemen, good day, and welcome to the Q4 FY ’25 and FY ’25 Conference Call hosted by Jubilian 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 conference 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 Jubilian Food Works Limited. Thank you, and over to you, Mr Sharma.
Lakshya Sharma — Head of Investor Relations
Thank you so much, Sagar. Welcome to Jubilant Foodworks Q4 and 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 Harius; our CEO and MD, Mr Sameer Ketarpal; our CEO of Turkey Business, Mr Raslan Saranga; our CFO, Ms. 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 Harius to share his view with you. Over to you, sir.
Hari S. Bhartia — Co-Chairman and Director
Thank you, Laksha. Good evening, everyone, and welcome to our earnings call. FY ’25 has been a landmark year for our company and the H2 performance has helped us set new benchmarks. We achieved significant growth and increased our market-share. The Group system sales reached almost $1.1 billion with almost one store opening every day-in FY ’25 and the group network now has over 3,300 stores.
Reflecting on the year gone by, we took decisive action this year, making strategic investments that has supported faster growth. We took the bold step of implementing free delivery, a move that has reshaped the competitive landscape. Simultaneously, we ramped our regional office and commissary infrastructure to support our ambitious growth plans.
These strategic moves have helped us in accelerating growth in FY ’25 and will continue to do so in the coming quarters. While the initial impact of free delivery led to a reduction of our average ticket price, we successfully absorbed this impact and we are now seeing the ticket price grow upwards again.
This has led to a record-high new customer acquisition, which we know compounds over the next couple of years in increased sales. And importantly, despite the increase in our delivery mix, we managed to increase Domino’s India EBITDA broadly in-line with revenue growth, holding firm our margins.
We are also committed to find ways to expand margins in the coming quarters. Furthermore, we have accelerated our pace of new product innovation, introducing exciting new offerings and resonate with our customers and drive incremental demand. We have also maintained our aggressive pace of network expansion, bringing the Domino’s experience to even more customers across the country.
These strategic moves are not just about short-term gains, they are about solidifying our leadership position and creating avenues for continued network expansion. The acquisition of DP Eurasia has also now completed a year through — through records, high system sales, healthy profitability and high free-cash flow generation from Turkey, we are able to bring down their local debt and starting H2 FY ’26, we will now start funding interest cost along with reduction in acquisition debt.
I want to take this opportunity to congratulate Sameer and the entire Jubilant works team, foodworks team. They have risen to the challenge, embraced change and delivered an exceptional performance. I would also like to thank the leadership team of our brand partners, Domino’s International, RBI and Inspire brands for their constant guidance and support.
Also, our aggregators, partners, our vendors, our service providers and the communities around all our facilities for their support in making JFL the largest QSR in the country. I must also thank you, our investors for your guidance and feedback to fine-tune our strategy. And most importantly, I would like to thank our customers, the reason for our existence who constantly inspire us to do better and keep us honest.Now I’d like to invite our Managing Director and CEO, Sameer, to provide a more detailed review of our performance for the quarter.
Sameer Khetarpal — Chief Executive Officer and Managing Director
Thank you, Mr Bhatia, and good evening, everyone. Q4 financial year 2025 was another exceptional quarter for Jubilant Food Works, building upon the momentum of truly remarkable year. As Mr Bhatia highlighted, our strategic decisions, i.e. relentless focus on execution through faster delivery, providing great value to customers through free delivery and offers like flat menu, material improvement in pace of menu innovation and embedding a culture of care and performance.
This has propelled JFL to lead the industry, both in terms of growth and profitability. FY 2025 was a year of turnaround for JFL. Despite demand headwinds, we continue to execute better through self-help initiatives. Key highlights include expanding our group network to 3,316 stores. The Domino’s network now stands at 3,031 stores across all geographies with a net addition of 238 stores in the year.
This expansion is a testament to our confidence in the long-term potential of the foodservice markets that we operate in, as well as our ability to execute against macroeconomic challenges in the short-term. Strong revenue growth in wake of tougher consumer demand environment, consolidated revenue reached INR8,142 crores in the financial year. Standalone revenue grew to INR6,105 crores, an increase of 14.3%.
Domino’s India revenue grew — our growth was at 13.4%, powered by strong 7.5% like-for-like growth in the year. In, we continue to build greater traction across cities as ADS is improving quarter-on-quarter and we are nearing lifetime highs. We also plan to share more details going-forward around is in coming quarters.
We believe in Oils India, we believe that Cop Oil’s India playbook based on differentiated products, own digital assets, our own delivery fleet and a unit economic model that suits India is nearing completion. DP Eurassia is navigating through a macro and navigating through a macroeconomic challenge, has delivered high profitability and record-high market-share gains.
DP Jurassia region achieved INR3,071 crores in-system sales in financial year 2025. Domino’s Turkey like-for-like growth was plus 0.4% on a high base of 29.2%. It is important to highlight here that we share metrics for Turkey after adjusting for inflation for better assessment of our performance with regards to-high inflation.
Coffee in Turkey continues to make rapid strides with its network reaching 160 cafes, serving consumers across 36 cities in Turkey. At INR295 crores in FY 2025, its system sales contribution to DPEU system sales is nearly 10%. As we shared with you in the last quarter, Sri Lanka is a great turnaround story, where we have successfully applied our emerging market playbook and delivered highest-ever revenue at INR81 crores with record-high growth of 45.6% 5.6%.
We are committed to profitable growth. As per pre-IndAS, 116 consolidated EBITDA came in at INR1,037 crores, resulting in a margin of 12.7%. Standalone EBITDA stood strong with Domino’s EBITDA scaling to a record-high of INR857 crores with an impressive 12.4% growth. Despite offering free delivery to customers, Domino’s India margin was at 14.5%, Nearly flat year-on-year. DPEU also maintained a robust EBITDA margin, showcasing the team’s ability to manage cost and drive efficiency in a high inflationary environment. I also want to highlight the progress we are making as a food tech company. We recently launched, which is India’s first Android-based point-of-sale system and a cloud-native developed 100% by our in-house team, it will streamline operations, personalize customer journeys and/training times in-stores boosting employee productivity. In the end, I’d like to also give you some strategic focus and an outlook. As we look-ahead, our priorities remain clear. We continue to aggressively pursue growth, growth opportunities for Domino’s, leveraging our brand strength, our innovation spirit and unmatched delivery capabilities. We’ll continue to build a large profitable business for both and coffee in addition to Domino’s. We will maintain our disciplined approach of capital allocation, ensure that we are investing in areas that we — that deliver the greatest value to our shareholders, while delivering joy to our customers. Our network guidance is as following. We’ll open 280 Domino’s stores with a split of 250 in India, 30 in Turkey. In coffee, we plan to open 50 cafes and in, we plan to open 30 stores. Thank you. With that, I will 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 a question may press R&1 on your touchstone phone. If you wish to remove yourself from the question queue, you may press R&2. For better audio clarity, all participants are requested to use handsets while asking a question. Ladies and gentlemen, we will wait for a moment while the question queue assembles.Our first question comes from Vivek Hem from Jefferies. Please go-ahead.
Vivek Maheshwari
Hi, good evening, team. A couple of questions. First, more on the — from an industry standpoint, what is your outlook? Of course, you are gaining shares, but generally speaking, you know, a lot of consumer — especially urban-focused companies are complaining about moderation in growth. So what is your outlook both from industry standpoint and your ability to continue to gain market shares as we head into F ’26. Yeah.
Sameer Khetarpal
I think great question, Vivek. I firstly like to say that what is working for us is structural. They are focused on delivery and then therefore pushing the boundaries on 20 minute delivery is structural and we believe that will allow us to gain share going-forward. As you can notice, we have dramatically increased our focus on menu innovation, the amount of paste that you’ve seen, whether it’s launch of chicken, volcano pizza, a three new range of cheeseburs and now big, big pizza, backed by very strong media investments, we believe will continue to take the momentum.
Number three was moving from four regions to seven regions. In fact, we are also testing for the eighth region as North India has — is beginning to reach more than INR1,200 crores. We are trying to even split it further to drive the focus in micro markets. Number four being rapid expansion of stores, we have increased the pace of expansion of our stores. And last but the culture which to me can never be copied.
So if I see these five in total, Vivek, it will sound always like self-help, but these are structural because we are operating in a very large market, which is largely unorganized. So if we keep that lens, we’ll continue to penetrate, grow more as long as we stay true to these five structural initiatives that we are drawing. So we continue to remain bullish and therefore, I’m refraining from commenting on the overall demand sentiment, but again, looking at are these levers working where the market is $60 billion and the organized segment is $12 billion to $15 billion.
Vivek Maheshwari
Got it, Sameer. The second one is on the dine-in bit. For the first time, of course, there is a low-base and all of that, but you have been seeing a decline in dine-in revenues — dine-in takeaway revenues for the last several quarters. This is the first-quarter where it has actually turned the corner. Do you think it is sustainable? How do you plan to build-on this in FY ’26?
Sameer Khetarpal
So I think we — see, we will never lose focus on it, right? So think it — the — yes, there is a big tailwind of delivery and with 20 minute and our own assets on delivery with so much of technological investments behind it, I think that momentum should continue right for some time. Now coming to dine-in, we — in fact, I want to share something more that we’ve taken the about 500 stores which are very dine-in heavy and we do a mystery audit on it.
And in my last 2.5 years at the company, I have never seen such high scores in terms of customer satisfaction and the cleanliness, hygiene service then of course, coupled with great quality food and outstanding prices. So overall, I — I think we will — I’m relatively more bullish on dining to be honest.
Now on-premise sale and to the extent we get the data because break the on-premise sale into two-parts, dine-in and takeaway. When I joined the company, takeaway was bigger than dine-in. Now dine-in is bigger than takeaway and dine-in per se is growing very rapidly. So takeaway is also declining rapidly because there is no reason for a customer to come to the store and take-away because the delivery is free.
So I’m — I generally believe when some of these bases get corrected, dine-in may come back and even surprise me. So I stay very optimistic about dine-in. We are seeing for the first time order growth, right, in dine-in, backed by some of the initiatives that we’ve taken that INR99 rupee and meal that we launched exactly a year-ago.
Now with all the marketing support, whenever I visit the stores, I see customers at 3 or 5:00. asking, can you give me I got late or there are customers waiting and to for that particular service to start. So again, is we focus on great value to customers with the superior dine-in conditions and with the new design of stores, I feel very, very good about the — having a large cohort or a base of customers which may want to go out and eat, especially during lunch hours, which we believe we can do even better than where we are.
Vivek Maheshwari
Okay, that’s good to know, Sameer. And the last question is, you mentioned Domino’s margins for this quarter at 14.5% and standalone at 11.8%. There’s quite a bit of gap which persists between these two. So one, can you explain what exactly, where exactly are you losing so much? And second, what is the way forward to bridge the gap between the two.
Sameer Khetarpal
So the — it is — I think someone can add, this is largely see investments in our emerging brands, right? And when you — when we — when we have like three other brands, Hong, Dunkin and Pop and as you see, we have already taken a stance of curtailing any or not doing any expansion in Dunkin and Kongs. This is the call we took mid of the year and focusing majorly on Pop oils, you will see that this getting corrected.
And in fact, in couple of years, I do believe this drag should — should at least there should be no negative surprises from it and drag should come down by half. So very committed to this. We know where it is going and some of the pieces around expansion of Dunken and Hongs we’ve already taken and we will see the goodness coming in or that the delta between the Domino’s margin and the overall JFL margin should reduce in coming quarters. That’s why we are also more confident on the margin trajectory from where we sit today?
Vivek Maheshwari
Interesting. Interesting. That’s about it. And if I have your permission, can I just ask one question to Mr Bhatia?
Sameer Khetarpal
Yeah. Yes, please. He is in the room. Please go-ahead.
Vivek Maheshwari
Okay, sure. MR. Bhatia, there are a lot of investors who have been asking about the transaction on HCCB. So two bits over there. One is From a group perspective, your focus on the new asset versus the existing ones, especially Jubilant Foodworks, that’s part one. And part two, again, to the extent you can share your thoughts on how would the funding happen and how much of the resources need to go from jubilant either via stake sale or via pledging. If you can share your views on both will be very useful.
Hari S. Bhartia
No, firstly, you know I can I can tell you my heart is in the food business which we started almost 30 years back. And we see — and we continue to see more excitement and more growth opportunities in India and you can see from this year’s results. So about focus, yes, focus will remain at Jubilant Foodworks.
On the funding of the new investment, most of the funds have been arranged. I can’t share that with you it’s not possible and soon you will know so I will just take that.
Vivek Maheshwari
Looking-forward to that, wish you and the team all the very best.
Hari S. Bhartia
Thank you.
Sameer Khetarpal
Thank you very much.
Operator
Thank you. Our next question comes from Tejas Shah from Avendus Spark. Please go-ahead.
Tejash Shah
Hi, thanks for the opportunity and congrats on sustaining strong LFL. Sameer, just wanted to know while margins are gradually recovering, I’m curious how the management internally defines the new normal of peak margin. Do you still consider historical peak that we had because that time we had delivery charges and other structure also or you believe that we need to kind of — should not anchor our thoughts around that number
Sameer Khetarpal
I think I would say if look at the peak at post was peak was around, 25% 26%, right? That is obviously not a sustainable number. And see the operator on operator in me always sees more juice in margins everywhere to be honest, right? And that’s the — my — when I tell my team every day, I feel there is so much more juice in leveraging data, technology and running a very tight operations.
So I — at least in my — when I sleep, I worry less about margins than more — than I’m always very thankful for growth and I always worry less about margins. And so therefore, coming back to your questions, I see no reason for us that we can’t improve 200 basis-points from here. And that’s what Suman had also mentioned during our Investor Day, we maintained that stance.
We are seeing leverage in the Domino’s in Domino’s in India for flowing through. The drag that you see is largely on account of new brands and we have to invest in new brands, right? It takes this business we know, it takes 10, 15 years to build a very strong successful brand. Once you do it, then there is no looking back. But we are cognizant can we do it faster?
We are — we are greedier over there. Can we do it in five years? That is what we are attempting to do for the first time in the — I would say a little bit in the history of QSR in India.
Tejash Shah
Yeah, very clear. Second question, the past three weeks has seen heightened geopolitical volatility. In that context, how are you evaluating the potential risk, if any, to our investments in Turkey?
Sameer Khetarpal
So we — we view these markets very separately, right? And if you go to Turkey, they are oblivious to any political changes, whether it’s — or the brand as Domino’s and coffee, which is actually a Turkish brand internally, they are not — they are not concerned about any geopolitical risk, whether it’s tariffs or Russia, Ukraine or anything which is happening on India-Pakistan border. The momentum in the core market and the consumer base in Turkey continues.
They are growing in dollar terms. The real GDP growth net of inflation has always been 3% to 4%. And in fact, the — if I look at just the macroeconomic condition, I typically don’t like to talk as a CEO, I’m an operator at heart. And in fact, the interest rates have been coming down, the — the interest rates have been tightered and as a result, inflation has been coming down in my last 2.5 years that have been associated.
So I feel-good about the macroeconomic situation in Turkey and the core thesis that we had, it’s a — it’s the largest consumer base outside of Russia in Europe and the youngest population with almost 3.5 times of per-capita GDP versus India, that all of those things are intact and therefore you see very solid performance of both Domino’s and coffee in Turkey.
So I’ll not worry too much about macroeconomic factors or anything geopolitical risk and impacting Turkey.
Tejash Shah
I mean, the other dimension of this question was that do you foresee or you worry about any regulatory or policy pressure to revisit the investment or perhaps it’s too early?
Hari S. Bhartia
Not at all.
Sameer Khetarpal
Not at all. We don’t see anything which is there.
Tejash Shah
Yeah. Yeah. Lastly, just a small request. If the time gap between the results release and call could be slightly extended, it, it would allow us to come more prepared and ask better questions. That’s it.
Sameer Khetarpal
So my apologies, Tejas, we will do better on this one. I think it’s something a little bit got extended. We will do better on this one. And if there are any unanswered questions that you have, please feel free-to reach-out to Lakshay and we will do better on this one.
Tejash Shah
Thanks and all the best for coming quarters.
Sameer Khetarpal
Thank you. Thank you, please.
Operator
Thank you. Your next question comes from the line of Jignanshu Gor from Bernstein. Please go-ahead.
Jignanshu Gor
Hi,, congratulations, I think, on a fantastic result for the standalone business. I wanted to check regarding Turkey and continuing with the previous conversation. How do we structurally think about that business and its margins? It has been volatile at least on a quarterly basis in the past few quarters. So do you think this is a sort of a stable view, which we can take forward at least on an annual basis or do you think it is still evolving?
Sameer Khetarpal
So, Suman, you can take that, but at least from a core market standpoint, this is how I track and therefore, I feel very good about it. See, firstly, their transaction volume should grow, new customers should grow, should grow. Their growth in nearer terms should be ahead of the core inflation rate, which is a tick mark. And coffee should expand at a faster clip versus Domino’s, which it is, right?
It’s a franchisee-led model. Therefore, there is no capital capital layout that we have to give to open up stores. So therefore, it is high ROIC. None of this has changed. In terms of margin, it is largely accounting level change, right? So which is a valuation of inventory in a high versus low inflationary environment, you were sitting on — we were sitting on high inventories, which get readjusted or reassess if your inflation is high after one year and therefore you get inventory gains, valuation gains.
If I look at the core health of the business again as an operator, is my volume going? Yes. Am I ahead of inflation rate in terms of my average ticket size? Yes, am I — are my franchisees happy and they continuing to expand stores? Yes, is my working capital improving? Yes, is my debt reducing? Yes.
So, so rest everything and it continues to be PAT accretive, right, which was our thesis. Rest everything is to me a little bit accounting, you just look at slightly longer-term in the nine to 12-month period, it should all kind of — the volatility should go away. Suman, you may just want to add like points to kind of stress upon if I’ve miscommunicated anything.
Suman Hegde
I think Sameer did cover everything and he is absolutely right. And I think in last call, we did mention say the turkey business, even as we manage performance, given the volatility and the hyperinflation accounting that happens there, which causes a bit of vagrees in the EBITDA quarter-on-quarter depending on how the inventory levels and debt move.
We should take a bit of a longer-term perspective, right? Now what we said last-time also is a PAT accretive business to overall JFL standalone and we see that in the conso numbers coming through. It is a cash accretive business also given the less — given their capital outlay is low, given the franchisee model perspective.
If you look at the PAT, we said last-time, they are normally in the range of 6% to 7%. Their full-year PAT has come in the same range and is improving year-on-year after you account for the EBITDA variation account of the inflation accounting. Hopefully, yes, hyperinflation should be out by another 18 to 24 months and we’ll see a more stable set of affair for people on the street to understand the numbers. But from a business performance perspective, again, I’ll just reiterate what Sameer said, our inventory levels are down. Their debt is almost half of what they exited at last year as the economy starts to pick-up and inflation levels come down. Their cost of borrowing is down and we also look at refinancing options of the Turkey debt locally. And hence, overall, it’s a good story on performance of. But yes, I do realize it’s a little difficult to understand the movement quarter-on-quarter given the different accounting standards that they use. But just do look at it from a Nine-Month YTD full-year number, which we also help you understand better as we release our results.
Jignanshu Gor
Great. No, thank you. That’s very helpful. Thank you for that. So moving back to the India business and focusing on. I think we’ve — we’ve had a fantastic performance on both online and now on on-premise. Do you see related to all the discussions which are happening by a lot of other players in the industry. Any difference in growth and demand environment that you’re seeing, let’s say, in the larger cities or maybe the top-tier cities versus the smaller cities since I think you are one of the most spread across company with the deepest distribution. So is there any color that you can give us on the demand-side? That would be helpful.
Sameer Khetarpal
And in fact, the — when I look at growth of Tier-1 to Tier-4 cities and we — and I look at it every month, there is like absolutely no difference, right? They’re all very similar 1 to 2 percentage points different when I look at order growth, right, and between each other. So we are not seeing the Anshu I think the — again, I go back to the point can it’s a $60 billion market with only one-third of it is organized.
What — and if you’re able to create great value, great service, fast delivery and with fast win free — I Call-IT the business, fresh, fast and free, right? If you have these three and there is enough and more growth to be taken, I absolutely see no difference between Tier-1, 2, 3 and four and it is about — and like I read lot of your reports and other peers that you have in this call.
I think the one learning is, if you give a great service, consumers are actually willing to pay more for service than products. And of course, products coming at high-value with high-quality cheese and products, we are seeing — we are seeing growth in all cities.
Jignanshu Gor
Okay. Thanks. And lastly, just a housekeeping question on — are you facing similar — like one of the food aggregator platforms called out a shortage of delivery drivers specific to this quarter. Is that kind of seasonality that you also see or is that a pressure that you’re also seeing since you probably have the largest delivery after them.
Sameer Khetarpal
Are nothing. It’s a — it is not easy to build these businesses, right? So especially with our own fleet and constantly pressure on getting riders. And so overall, of course, I do — we do see pressure. It happens during the season around April when there is harvesting, right, but these are minor variances, so I like they don’t even come to me, the teams are very capable of using data to forecast how much — how many riders they need, what will be the absenteism and therefore, the machines run the incentive programs so that we meet.
In fact, our the best delivery accuracy or timeliness has been in the last couple of months ever. So — so I’m very happy to note that customer metrics are improving and some bit of here and there is more noise to me.
Suman Hegde
And also just to add-on that, I think it helps that one, of course, we have our own fleet. So access also to riders is much larger than what the aggregators will have that they would have to bring their own asset, right, which is what we invest in. And secondly, I think our Investor Day, we did share on how we have used technology to hasten the process of even onboarding of drivers, right?
So if somebody has a license, meets the criteria, it’s almost like a 30 minutes to an hour and we can get them on the street with our assets. So I think a couple of things that we’ve also done in terms of investment, both in terms of assets and tech gives you a bit of an edge to get through, of course, because there is a shortage and we know why.
Sameer Khetarpal
The good point. I think what Suman is saying is we have access to wider pool of riders who do not have bikes, right? So therefore, and that can act as a buffer.
Jignanshu Gor
That’s it. Thank you so much and congratulations look all the best.
Sameer Khetarpal
Thank you,.
Operator
Thank you. Our next question comes from the line of Sheila Rathi from Morgan Stanley. Please go-ahead.
Sheela Rathi
Yeah, thanks for taking my question. I mean, my first question was with respect to — I mean, the question is, do you agree that cost of doing delivery business is going up for us, given that you know there is high competitive intensity there. Second is there is no delivery charge. Third is we’re trying to reduce timelines. Fourth is there is inflation around labor force and then there is discounting most importantly.
So first is — and I hear you heard — you said this to earlier participant that we will try and bring back our margins to improve it by 200 basis-points. So there’s no disagreement there. But the question here is that is it getting more-and-more difficult to do or the cost to run a delivery business higher because now that is almost 73% part — 73% of our revenue.
Sameer Khetarpal
I think Minister, Ashil, I think it’s a loaded question. Yes, I would — my bias is to say, yes, of course, it is difficult. But I would say in the last few years, we’ve like really changed the game on this one. Now let me give you some — you spoke about headwinds, right? Of course, through quick commerce and direct-to-consumer channels, aggregators, a big e-commerce player, we are all kind of vying for the same delivery associate and therefore there is pressure, especially in about 39 pin codes in India, which is the highest convenience. So I do see pressures over there and therefore we have to be competitive over there.
Having said that, we have our own bikes. There is a larger pool over there and we per hour delivery rate or DPH as it’s called deliveries per hour is higher in our system because you are doing from one store to a catchment area and therefore delivery associates can do more deliveries, therefore earn more.
We give them a restaurant and a place where they can use washrooms. They have a career path, lot of many of our circle heads, region heads are started as a delivery associate. So there are several factors which go in favor of us, which make us, I would say, a viable option versus the competition that may exist. And from a cost standpoint, I’m coming to it, again, the operator and me tell me, of course, this will be an additional cost, but there are 20 other places where my team is executing to find those money.
So — and of course, course, growth is the biggest elector for our business. It is — it a lot of that growth flows into the bottom-line because we have large fixed costs when we are running and operating stores.
Sheela Rathi
Sameer, anything on discounting because the discounting has been much higher than what we have seen in the last few quarters. Obviously, it’s resulting in better LFL growth, but how are you seeing the discount for us?
Sameer Khetarpal
In fact, discounting has come down for us. We’ve always even use technology, it is discounting. So let me — where are you reading it, if I can — if I can — in fact, discounting was a tailwind to us.
Sheela Rathi
I mean, I see it on my app, but if you — even in the presentation, I see that the large, we almost are giving 50% discount on that product. Obviously, it’s an introductory product pricing. But I just want to hear from you how discounting is for us versus, say, last 12 months?
Sameer Khetarpal
Yeah. So the discounting as a percentage has come down. Now, of course, specifically talking about big, big pizza, right? So it is a INR700 and INR800 product, right? So it adds to my — to my average ticket price and therefore, my delivery cost as a percentage comes down and my insider through cost as a percentage comes down and my rent as a percentage of that order comes down. So there are several tailwinds and it is — and in fact, generally customers reach-out to me, Sheila, when things go bad, big, big pizza has been one such occasion where customers reach-out to me that is this a pricing error?
Is this a mistake? And when are you going to stop it? It looks like nobody orders so much food at such price. So again, we are gaining customers. We’ve been able to grow the share of large pizzas by 3 times in just 15 days. And I would rather take that at At this stage. And like I said, I will find the money in terms of margin expansion.
Suman Hegde
I just like to add to that, Sheila, and I agree what Sameer said, we constantly look at is kind of the two things also here, I think it’s important to focus on, right? Of course, you might see a high discount, but the way we play it is saying what is the implication on the margin and what is the implication on the gross margin, how does it come through to EBITDA.
So yes, you might see a high discount, but if it’s an item which improves the overall mix on realization for us on the top-line and also improves the margin — gross margins that these items make. Then discount, higher discount is not a bad thing from a portfolio perspective. I think playing those levers effectively is very important.
And the second one, while you’re seeing discounting, but it’s also true that we have a back-end analytics engine which runs to also optimize where we need to or where we are seeing certain things higher than you discount or you don’t. So what you see in an app might not be similar for you versus what somebody else sees.
I’m just saying it is actually customized to that extent, which actually our tech capabilities allow us to do, which ensures that we manage our discounts effectively rather than it looking like 50% across. I hope that answers to some extent your question.
Sheela Rathi
Absolutely. I hear you. My final question is on. I just want to hear from you in F ’26, how should we think about the rollout plan, especially from a state perspective as such, which states will we be focusing on? Thank you.
Sameer Khetarpal
Yeah. So from a state perspective, Sheila, we — we want to get to a number of like close to 100 and therefore lot of marketing investments then starts to look very meaningfully or have a larger base and you can buy media inventory. So that’s what we are like in — whether it happens in 12 months and 18 months, I obsess less about it.
But I want each of my new-store to be accretive to on the average daily sales, which it has been very delighted that when I see last 10 15 stores, we will open all are accretive, right, and very close to the ADS that we want it to be. So equally importantly, we see month-on-month growth on the on the ADS and very positive SSGs in the last quarter.
So we have given a guidance of 30%, right? I first less of whether it’s 30 or 35 or 25 or even 45, we exactly know which locations to open. Geographic focus will be largely around north. South will be the biggest geographic focus, then Delhi NCR and we are evaluating West as we speak but no further expansion beyond this.
Sheela Rathi
Thank you.
Operator
Thank you. Your next question comes from the line of Nihal Mahesh Jam from HSBC Securities. Please go-ahead.
Nihal Mahesh Jham
Yes, sir. Good evening, Sameer. Two questions. One is you’ve obviously highlighted about the customer acquisition and that is very much laudable and visible in terms of how it has played out over the last six, 12 months. I’m not sure if there is a way of tracking, but is there a comfort that say when a — when there is an improvement in sentiment that you would expect these customers to obviously step-up that these are not discount seeking customers and maybe when you try pulling back some of these discounts that all the effort that was spent in terms of acquiring them is something that maybe doesn’t crutify going-forward?
Sameer Khetarpal
Yeah, I think I would concur with it, right? So we are very careful on the quality of business we are building, right? And these are not discount seeking. These are value-seeking customers, right, and convenience seeking customers. So if you see our repeat rates have remained the same. In fact, our repeat rates have beginning to inch up a little, right?
And while it may be small, therefore, I don’t want to celebrate at all. But so therefore, I’m very happy with the quality of customers we are acquiring. In fact, our installed to first order rates are at an all-time high. So typically what digital performance marketing teams will do is they will go for very-high installed-base and therefore, hope and pray some percentage of customers will order.
And actually we have reversed it. Our installed-base, if you look at the quarterly install of apps has kind of been thereabout, but the percentage of customers ordering has improved, which means that our offerings, our service, our reach has improved and we are acquiring better-quality customers. So no concerns over there at all.
Nihal Mahesh Jham
Point taken. The second question was that you mentioned about 250 stores for Domino’s India. Can you just give a ballpark sense of the split? Is there any sense of split stores metro, non-metro, any more clarity on that.
Sameer Khetarpal
Yeah, so nothing, nothing the — I think like I said, we have a list of 1,000 locations, right? And out of that, some 700 to 800 is white locations where we don’t serve, right? The remaining are splits, right, in the overall splits — in the overall scheme of things, not splits are not going to be more than 20% right what they are about. In 1/4, we may do more split because we found the right set of rentals in space and the others we will do less split because we were able to find more lucrative offers in white areas.
Nihal Mahesh Jham
Got it. Just squeezing one in, possible to give an outlook on SSG for FY ’26, LFL or SSG for the India business?
Sameer Khetarpal
We don’t give that SSG, right? And in this environment, I think it’s a — we don’t generally give that. I think overall momentum continues and the — and our the strategy that we have put in-place, we are very confident about it.,
Nihal Mahesh Jham
Thank you so much. Thank you.
Operator
Thank you. The next question comes from the line of Percy Panthaki from IIFL Securities. Please go-ahead.
Percy Panthaki
Yes. Hi, Sameer. Congrats on a good set of numbers. Couple of questions from my side. So firstly on the LFL, now it’s been a couple of quarters since you have done a 12% kind of LFL. Of course, this comes on the back of a negative to flattish kind of LFL in the base. Now this base effect is there for the next two quarters as well. But when we come into 3Q of FY ’26, we will be lapping a base of 12% LFL. So I just wanted to understand that do you see a material deceleration in your LFL growth in the second-half of this year given the base effects or how should we be looking at it basically?
Sameer Khetarpal
Yes. So I think this will tantamount per se to giving some kind of guidance, right? And therefore, I’m refraining from answering your question, would base have some effect? Of course, it will some have it. Does base have some effect in the current quarter? Of course, it does, right. But the — we are seeing historic highs in our customer acquisition rates and volume per store and also now repeat rates and now the average ticket prices are also beginning to improve.
So therefore the mature store ADS, if you look at, right? So that number is there, right. As long as that is there and we have like a two, 2.5 year payback period, slight moderation in like-for-like, I’ll worry less about it, right? So I’m obsess about the mature store ADS and the acquisition rate of customers, rates and the ROI model that we have for store.
Percy Panthaki
Got it, got it. Second question is on the profits. The consol and the standalone net profit this quarter are almost exactly the same. So just wondering what we can do to really widen that gap. I mean, is it possible for us to, let’s say, take a loan in India at the sort of Indian interest rates, which would be, let’s say, 8% to 10% repatriate this money to Turkey and then pay-off the debt in Turkey because there we are paying like 30% 40% interest-rate. So is that something you are considering? I mean, ultimately, the acquisition is good, but it is not yielding us any incremental PAT? That is my concern.
Suman Hegde
Yeah. So let me take that question. Thanks for the suggestion, Percy. And I think you’ll be happy to hear we are already in implementation mode. But I agree. I think that there are a couple of things, right. When you look at console and it’s not only Turkey, we have a couple of other businesses as well, which is Sri Lanka and Bangladesh, where we continue to invest.
So that also — and as the trajectory of profitability on those improves, we will see that also flowing through into conso, which currently is a negative number which offsets the profits even that Turkey has brought in. The second point of expanding the India numbers anyway, we’ve already spoken about it. Coming to Turkey and the loan, we have already looked at refinancing and the interest rates in Europe are even lower than India at the current rate, even after taking into account the euro rupee or the euro lira translation impact and we’re already looking at refinancing the debt of Turkey.
So Turkey will not be sitting on a high-cost of borrowing starting this year, which we are already in work-in progress on. And the second part is overall Turkey, if we look at a couple of years ago, did not have such significant borrowing at the local level. It was not existing. They had certain restrictions on account of inflation.
And of course, the Russia business that they had a few years ago, which had increased the borrowing rates. With that coming through, we also expect Turkey as a business to be at minimal or zero-debt coming into next year — calendar year, I mean. So all-in all, you should see the overall PAT improvement between the standalone and conso coming through between these three businesses as we start flowing more numbers of profit into the bottom-line
Percy Panthaki
. Got it. And just one bookkeeping question. This 200 bps of margin potential on standalone, which you mentioned earlier in the call, Sameer, over what time horizon is that?
Suman Hegde
So we — I think we said in the Investor Day as well, right, we had called out we said over the next three years, FY ’28, that is only that is on the level, right. And we say it’s a minimum off, right? So that’s not — could we say at least that much, of course, it all depends on the —
Sameer Khetarpal
What is the larger point I was making is that this is not coming at the expense of growth that like the — firstly, we are not like losing margins and mindlessly that we know where to recover it from and not having any part. The most important thing right now was getting growth and acquiring customers, right? That’s the message you should take. 200 basis. I feel like I said, as an operator and we say always is that enough juice.
Our teams have to execute again get it store-by-store, pizza by pizza brand-by-brand. Those things are there. So I think I’ll stick to guidance of like 200 basis-points for minimum should come in over the next three years.
Suman Hegde
But no, we asset overall EBITDA level flowing through to PAT as well. Yeah.
Percy Panthaki
Okay. Okay.
Sameer Khetarpal
Financial reengineering or financial like paying our debt and therefore getting it from interest. It was largely operational is what we need to say.
Percy Panthaki
Understood. Understood. That’s it from me. Thanks and all the best.
Sameer Khetarpal
Thank you for speaking.
Operator
Thank you. Our next question comes from Ashish Kanodia from Citi. Please go-ahead.
Ashish Kanodia
Yeah, thank you. So the first question was on the new product development within Domino’s India. And on the Analyst Meet, you touched upon that in, for example, in US Chicken wings is almost 18%. Now when we look at the two new product innovation beyond the, the chicken wings and the, can you give us some sense, one, in terms of what kind of a contribution they are hitting right now, just a ballpark number?
And second, are they also helping you whether to drive higher dine-ins, customer acquisition? And then also dayparks, like are you seeing more for revenue-share coming in during the day-parts or during snacking time, if you can also touch upon a bit on that? Thank you?
Sameer Khetarpal
Yeah, no Ashish, great set of questions. I think there are — you are talking about disaggregating growth into multiple vectors. So chicken is one adjacency, which is an important vector. So customers order pizza when they’re craving for cheese and when they want to share. So chicken wings, chicken poppers, the bites range that we have and the fried chicken, that boneless fried chicken that we’ve launched, right? It is exceeding our expectation.
In fact, I spend every Monday morning with my sourcing team to source for chicken wings because we are short, we are constrained on supply of chicken wings. So we had to ration chicken wings and in fact stop the business in North and West to serve South and East, right? So it will give you an indication that even like a product which has been launched in just four or five months is gaining traction more than that we thought.
The — the salience of the product obviously is higher in East and South where it is a larger non-vegetarian heating market and it is ahead of our plans. And see, I again look at this as a INR1,000 crore platform, right? And I generally believe the range of chicken, right, as an accompaniment to pizza will definitely get to that number.
It gives me all the more confidence in terms of growth rates I see in the store, attachment rates and the customer feedback that we are getting. The second vector you mentioned was what can you do for lunch, right, or late-night, right? I think teams are working. We are — we are iterating with options for lunch and we should launch very soon, focused on the right set of markets.
The INR99 rupee four course meal lunch available in dine-in is doing very well, continues to be the growth driver over there. We have extended a different version of it at a higher price for delivery customers and that is now beginning to do well and teams are building more propositions which are either focusing on value-seeking customer or customers looking for IT because that’s another and comfort that is another vector we are focusing on.
So multiple of these vectors in play and you will see the continued pace on product innovation with very sharply targeting a certain occasion meal hour or a set of consumer cohort?
Ashish Kanodia
Yeah. Sure, Sameer, that’s helpful. The second was — second one was on Popeye. So almost a year back, you talked about medium-term guidance of 250 stores. This year has been around 19 store next year. This acceleration to 30 store, but how should we think about that 250 stores? Is it a three, four-year phenomena where maybe next year you are still trying to get maybe the supply-chain right as you talked about chicken sourcing, etc.
And should we expect a meaningful acceleration, say, in ’27, ’28, like I’m trying to understand the IN 250 store guidance, INR1,000 crore revenue, is it like a three, four year or slightly more long-term?.
Sameer Khetarpal
I think the — I think you definitely begin to see acceleration going-forward, right? And again, like I said, we are nearing the playbook that we want to build to get to. The firstly is to get to the right three things which are the most important. Number-one is the store capex and model that we know you know what is working, what is not. In three years, we have now a very good sense and we’ve been able to bring down right.
We’ve sorted the supply-chain, we will be leveraging the Domino supply-chain. Therefore that translates into gross margins, right, which are very healthy, right? So third — and the third is the customer love, right? So this is the ty and these three — therefore, I feel very good about solving like almost 80%, 85% of this trilogy, we know margins will come, right, so and we’ll get to that number.
So — and once we once — we get more data in next couple of quarters, we should also expand beyond that.
Ashish Kanodia
Yeah, Sameer. And I think this question got asked, but when I look at the standalone EBITDA and then both EBITDA and revenue and then what is there for Domino’s India. So the implied revenue for other businesses is roughly INR200 crores. And when I look at the EBITDA loss for the other businesses, which would be Dunkin, Hongs and Pope it’s roughly INR130 crore, give or take, maybe INR2 crore INR3 crores here and there.
So one, is there anything else also which is sitting here beyond the store-level losses because just at a INR200 crore revenue, this INR130 crore looks slightly higher and at least my understanding is given that Dunkin and Hongs has been there for quite some time, maybe the losses in those two formats would be bare minimum and is it a — is it right to understand that a large part of it is in Popeyes because of the investments?
Sameer Khetarpal
The other thing is, I think the — I would say the losses in Dunkin and Hongs are also not less, right? So I think otherwise your most — whatever you said is actually right, mostly right. So except for the fact that Dunkin and Hongs were — we have corrected a lot of it and therefore, you will see more goodness coming in the coming quarters from this portfolio.
Ashish Kanodia
Yeah. Sure, Sameer. And just last one is on the inflation side. Are you witnessing any inflationary pressure on the cheese or any of the raw materials?.
Sameer Khetarpal
Yes, I think we are. I think there are few commodities which have gone up, especially cheese, oil and coffee, right? These are the, I would say, the top three. There are some tailwinds. So-far. I think what the team is telling me also gone up, but the crop has been really good. So we expect some of the prices to moderate.
We are seeing it. We have covered a few areas, right? And so I don’t — at least the internal plan again is to beat the inflation through internal efficiencies and better utilization of factories, lower conversion costs, lower logistics cost, right? But I do see inflation in the manpower and wages and those things will be there.
But overall, I think the inflationary environment is, I would say, relatively benign and because oil prices have been stable, the crude oil prices have been stable for a long-time, the power fuel has been stable. So there are certain — I worry less about inflation what I used to worry two years ago.
Ashish Kanodia
Sure, Sameer, that’s super helpful and all the best.
Sameer Khetarpal
Thank you thank you so much.
Operator
Thank you. We’ll take the last question from the line of Shirish Pardeshi from Motilal Oswal. Please go-ahead.
Shirish Pardeshi
Hi, Sameer. Thank you and congratulations for good delivery. Just quick question. I was just trying to understand this INR99 lunch menu, I think there is a lot of noise and there is a lot of push From the management side, but in fact, how consumers has also accepted. So just more curious, in your SSG, a year before and now if we calculate what kind of delta we would have got, maybe substantial 200, 300 basis-points or lower than that.
Sameer Khetarpal
See, lunch hours definitely order growth more than that, right? So again, the way we look at our businesses is first order growth comes in which acquires new customers and the repeat follows, right? So on lunch hours,, it is it is more than the number that you are seeing, but it’s a very dine-in-focused product offering outstanding value and every time I visit stores and I ask customers what got you here during lunch hours, four out of seven customers actually will end-up saying it was the lunch fees that brought us over here.
So it’s a very popular product. Again, we have to stay invested. I think it can be much, much larger than where it is and we should not lose focus on building this as truly the best proposit dine-in proposition that the entire QSR industry has to offer.
Shirish Pardeshi
One follow-up here. Do you think — do you think there is some more improvement to be done or pricing adjustment towards subsite potential is possible in this business?
Sameer Khetarpal
I think it is always there, right? And I think consumers we — again, I let nowadays machines and data sciences team decide that we are experimenting with few areas. We will correct pricing where we have to. But broadly, we want to stand for value and not get overboard at this stage. And in some pockets where we thought it was easier to correct like volcano pizza, we went ahead and corrected also.
So — but not on mass, not we will be very scientific, very rigorous right in taking price hikes, but there is a team that is looking at it.
Shirish Pardeshi
Because while talking to some few places, I think the consumers is excited and now the product is now taking off. So I would say that it’s worked almost 3/4 now, maybe IHOP is helping us. But then I was more curious that what kind of changes it will happen if at all if you need to do.
Sameer Khetarpal
I think I’ll refrain from saying that I think again my bias is to look at the country into various consumer cohorts and the combination of stores, then you have channels, which is dine-in, takeaway, aggregators, our own app, and then you have big days like Diwali, Christmas, Holi, etc. So I think it is — pricing has become a very sophisticated science than what I used to do 25 years ago.
And therefore, there are several opportunities. I will let the data sciences team to run experiments and where without losing the growth, right, or the customer, we will take calibrated calls and we have begun to take some calibrated calls.
Shirish Pardeshi
Okay. One quick question to Suman. What kind of — because the initial report is coming now saying that milk inflation and chicken inflation is expected to rise. Is there what inflation we are working with now with both these items?
Sameer Khetarpal
Okay. So I think overall basket I was — because I was looking at it this yesterday, so let me answer and Suman can add. 2% to 3% is what we are working on as from a — from a — from our — from our food — food and paper, right, so that’s raw-material and packaging material. I think we’ll be ballpark over there. It may be higher in milk, but we have covered ourselves.
It has surprised us in oil, but oil — the palm oil and cooking oil, it has started to cool down, but we are seeing some benefits elsewhere and therefore 2% to 3%. All of that or large part of it should be neutralized by internal initiatives.
Shirish Pardeshi
Okay. All right. Thank you and all the best.
Sameer Khetarpal
Thank you. Thank you,.
Operator
Thank you. Ladies and gentlemen, that concludes our question-and-answer session. On behalf of Jubilian Foodworks Limited, that concludes this conference. Thank you for joining us. You may now disconnect your lines. Thank you