Shares of Jubilant FoodWorks Ltd and Bosch Ltd experienced significant drops in Thursday's trading, falling up to 8% following the release of their respective quarterly financial results.
Jubilant FoodWorks Faces Inflationary Headwinds
Jubilant FoodWorks saw its shares fall 8 percent, hitting a low of Rs 434.65 on the BSE. Despite reporting healthy Q4 results, the company highlighted immediate inflationary pressures impacting labor, utility costs, and logistics. This outlook led to several earnings downgrades from analysts.
Emkay Global noted that while Q4 EBITDA estimates were beaten by 5-8 percent, the company's commentary on near-term inflation prompted them to cut India EBITDA estimates by 6-7 percent. They attributed Q4 growth moderation (flat like-for-like sales vs. 6.5 percent in FY26) largely to a high base, with two-year LFL growth remaining stable.
Jubilant FoodWorks anticipates growth trends to improve through FY27, though a guided 200 basis points margin gain by FY28E is expected to be somewhat delayed. ICICI Securities maintained a 'Buy' rating with a target of Rs 570, acknowledging steady execution despite a soft demand environment and competitive intensity. In contrast, Elara downgraded the stock to 'Accumulate' from 'Buy' and reduced its target to Rs 500 from Rs 780, citing missed revenue estimates and a 4-5 percent cut to FY26-28E EBITDA estimates.
Bosch Misses Profit Estimates Amid Higher Depreciation
Bosch shares declined 4.94 percent, reaching a low of Rs 35,001 per share. The company missed its Q4 profit estimates, primarily due to higher-than-expected depreciation and reduced other income.
MOFSL reported that Bosch's net revenue was largely in line with expectations, growing 13.3 percent year-over-year, driven by strong performance in its automotive segment, particularly Power Solutions and two-wheelers. While the Q4 EBITDA margin surpassed MOFSL's expectations at 14 percent (up 80 bps YoY and 100 bps QoQ), the overall profit figure still fell short. The margin beat was attributed to significantly lower other expenses, a point on which MOFSL awaited further clarity from management.