In a challenging quarter for India's quick-service restaurant sector, Jubilant FoodWorks Ltd emerged as the standout performer, delivering impressive growth while competitors faced significant headwinds. The company, which operates Domino's Pizza across India, reported strong financial results that defied the industry's overall weakness.
Dominant Performance in Tough Market
Jubilant FoodWorks posted remarkable 19.7% year-on-year revenue growth, reaching ₹2,340.15 crore during the September quarter. Even more impressive was the company's net profit, which doubled to ₹194.6 crore. This performance stood in stark contrast to the broader QSR market, which struggled with soft consumer demand and festival-related disruptions.
Sameer Khetarpal, Managing Director and CEO of Jubilant FoodWorks, highlighted that Domino's India achieved 9.1% same-store sales growth despite the onset of Navratri, a period when many Hindus traditionally fast. The company credited its delivery-focused model and continuous product innovation for helping it outperform the market.
Competitors Face Multiple Challenges
While Domino's flourished, other major QSR players encountered significant difficulties. Westlife Foodworld, which operates McDonald's in west and south India, managed only a 3.8% revenue increase to ₹642 crore. The company's managing director, Saurabh Kalra, noted continued softness in discretionary spending and reduced frequency of eating out.
Devyani International, which runs KFC and Pizza Hut outlets, reported 12.6% revenue growth to ₹1,377 crore but faced margin pressures due to slower dine-in recovery and increasing aggregator commissions. Chairman Ravi Jaipuria pointed to the particular challenge of both Shraavana and Navaratri falling in the same quarter, which significantly impacted out-of-home consumption and particularly affected KFC's chicken-heavy menu.
Sapphire Foods, another operator of KFC and Pizza Hut restaurants, slipped into a loss of ₹12.8 crore, with EBITDA margins declining 230 basis points to 14.3%. The company's CEO, Sanjay Purohit, emphasized that consumer discretionary spending remains constrained without material improvement.
The Secret to Domino's Success
Jubilant FoodWorks' competitive advantage stemmed primarily from its fully owned delivery network, which insulated the company from third-party aggregator commissions and provided complete control over pricing, delivery speed, and customer experience. This strategic approach proved crucial in a market where dependence on platforms like Swiggy and Zomato was eroding competitors' margins.
Market expert Satish Meena, founder of Datum Intelligence, explained that Domino's has the biggest mind share in delivery—people associate it with reliability and speed. The company's "Free Delivery" offer, 20-minute delivery promise, and massive 40-million-member loyalty program maintained strong repeat orders throughout the quarter.
Domino's also excelled at balancing affordability with innovation. The chain launched pizzas at accessible price points of ₹149 and ₹199, which drove significant volumes, while simultaneously introducing premium options including Korean-inspired and larger-sized pizzas to keep the menu fresh and exciting.
Broader Sector Challenges and Recovery Hopes
According to a Bernstein report dated November 6, 2025, the QSR sector's September-quarter weakness reflected both seasonal factors and broader macroeconomic challenges. The report highlighted that high delivery mix is eroding margins since delivery economics are inherently less profitable than dine-in operations.
Throughout the quarter, QSR chains relied heavily on discounting and value-led offers to attract customers. McDonald's offered ₹69 McSaver combos, KFC promoted "9 for ₹299" buckets, and Pizza Hut ran "Buy 1 Get 3" deals. While these strategies helped maintain market share, they came at the cost of profitability, further compressing margins across the industry.
Industry executives noted that rising aggregator commissions and the slow recovery of dine-in business—typically a higher-margin segment—continued to hurt financial performance. The sector remains below pre-pandemic levels for in-restaurant dining.
Optimistic Outlook for Festive Season
QSR operators are expressing optimism for the December quarter, traditionally a strong period for food services. Jubilant's Khetarpal revealed that October sales were already "ahead of plan" and expects strong festive momentum to sustain double-digit growth in the second half of the year.
Market analyst Satish Meena supported this positive outlook, noting that spending on food and QSR doesn't taper off after Diwali. The season extends till New Year, with higher mall footfall, travel and social gatherings driving consumption.
Westlife Foodworld's managing director also sounded upbeat, anticipating improved consumer sentiment and better store footfalls during the festive quarter, supported by new menu innovations and value-led offerings.
As India's $27.8 billion QSR market continues its journey toward an expected $43.5 billion by 2030, Domino's delivery-led strategy and owned network provide a compelling case study in navigating challenging market conditions while maintaining growth momentum.
