Jubilant Foodworks shares are in focus after leading brokerages issued diverging recommendations on the stock following its Q1 FY26 results, reflecting differing outlooks on margins, growth trajectory, and competitive positioning.
HSBC on Jubilant Food: Hold, target price ₹650/sh. HSBC upgraded the stock to Hold from its earlier stance, citing strong like-for-like (LFL) growth of 11.6% sustained in Q1 FY26. However, it flagged a slight margin miss due to higher promotions. The brokerage remains confident in the company’s strategy to drive market share gains and outperform peers, with traction expected to continue in the second half of FY26.
Morgan Stanley on Jubilant Food: Buy, target price ₹781/sh. Morgan Stanley maintained an Overweight rating, noting that India’s growth remains strong with an 18% revenue rise and Domino’s India LFL growth at 11.6%, outperforming QSR peers. The brokerage expects gross margins to improve and believes healthy top-line growth will aid EBITDA margins in the coming quarters, with a focus on penetration rather than aggressive price hikes.
CLSA on Jubilant Food: Sell, target price ₹519/sh. CLSA reiterated its Underperform rating despite Q1 standalone sales growing 18% YoY, in line with estimates. It highlighted a sharp 199 bps YoY contraction in gross margin to its lowest level in over 30 quarters, along with an EBITDA miss. The brokerage cut FY26–28 earnings estimates by 5–11% to reflect higher costs, signalling caution on profitability trends.
The contrasting views highlight the divergence in market sentiment — with Morgan Stanley upbeat on growth, HSBC taking a cautious but positive stance, and CLSA maintaining a bearish outlook due to margin pressures.
Disclaimer: The views and recommendations above are those of individual brokerages and do not represent investment advice. Investors are advised to consult certified financial advisers before making investment decisions.
