India Ratings and Research stated that the affirmation reflects JFL’s dominant market position in the quick service restaurant segment, strong business model with its presence in multiple brands and geographies, and the acquisition of Netherlands-based DP Eurasia B.V. in FY24 to expand business presence and diversify revenue base. The acquisition had resulted in a moderate credit profile in FY24, which improved in FY25.
India Ratings expects JFL to sustain the improvement in credit profile, while maintaining a strong operational performance, by close of FY26.
However, the ratings are constrained by concentration risk, mainly in Dominos, as well as execution risk, competitive pressure and raw material cost inflation.
The agency further said that a substantial increase in the revenue and the profitability, along with significant diversification, while improving the credit metrics, on a consolidated and sustained basis, could be positive for the ratings.
However, any significant weakening of the profitability and/or an increase in debt-funded capex or acquisition leading to the visibility of consolidated net adjusted leverage remaining high, on a sustained basis, could be negative for the ratings.
Jubilant FoodWorks is part of the Jubilant Bhartia Group and is among India’s leading food service companies. The company holds the master franchise exclusive rights for international brands such as Domino’s, Dunkin' and Popeye’s to develop and operate restaurants. As of 31 March 2025, the company owned 94.06% stake in DP Eurasia, the master franchise for Domino’s in Turkey, Azerbaijan and Georgia.
The scrip added 0.08% to end at Rs 626.75 on the BSE on Friday.