Jubilant FoodWorks revokes EUR 116 million corporate guarantees issued to HSBC for Dutch subsidiary JFN

Business Upturn

14-05-2025

Jubilant FoodWorks Limited, the master franchisee of Domino's Pizza in India and several other regions, reported a significant 76% year-on-year decline in net profit for the quarter ended March 31, 2025. The company posted a net profit of ₹49.3 crore, down from ₹208.3 crore in the same period last year. The decline was attributed to […] By Aditya Bhagchandani Published on May 14, 2025, 16:42 IST
Jubilant FoodWorks Limited, the master franchisee of Domino's Pizza in India and several other regions, reported a significant 76% year-on-year decline in net profit for the quarter ended March 31, 2025. The company posted a net profit of ₹49.3 crore, down from ₹208.3 crore in the same period last year. The decline was attributed to the absence of exceptional gains seen in Q4 FY24 and persistent cost pressures.
Despite the profit decline, revenue from operations rose 33.6% YoY to ₹2,103.1 crore in Q4 FY25 compared to ₹1,573.97 crore in Q4 FY24. Total income, including other income, stood at ₹2,113.9 crore.
However, profit before tax dropped to ₹69.5 crore, down sharply from ₹225 crore a year earlier, indicating cost escalation and margin compression. FY25 performance highlights: Revenue from operations: ₹8,141.7 crore (up 44% YoY)
Net profit: ₹217.1 crore (down 46% from ₹400 crore in FY24) Corporate Update:
The company also announced the revocation of corporate guarantees amounting to EUR 116.09 million issued in favour of HSBC Bank. These guarantees were originally provided for the repayment obligations of Jubilant Foodworks Netherlands B.V. (JFN), a wholly owned subsidiary. The company disclosed it may replace the guarantees with an alternative arrangement mutually agreed upon with HSBC Bank, without any further recourse to Jubilant FoodWorks.
Aditya Bhagchandani serves as the Senior Editor and Writer at Business Upturn, where he leads coverage across the Business, Finance, Corporate, and Stock Market segments. With a keen eye for detail and a commitment to journalistic integrity, he not only contributes insightful articles but also oversees editorial direction for the reporting team.