Goldman Sachs has raised near‑term operational concerns for India’s quick service restaurant (QSR) space, flagging LPG supply tightness as a key risk for Jubilant FoodWorks, while maintaining a relatively favourable stance on Devyani International, Sapphire Foods and Westlife Foodworld.
The brokerage notes that Jubilant relies on LPG for over 90 per cent of its energy needs, with inventories currently pared down to just 3–5 days versus the usual 7–10 days, raising the risk of disruption if shortages persist. While the impact is limited for now, higher energy costs and operational challenges could intensify, particularly during peak demand periods. This view builds on Goldman’s earlier March assessment, which remained constructive on Devyani and cautious on Jubilant and Westlife, citing improving same‑store sales growth, value-led demand recovery and geopolitical disruptions as an ongoing overhang for restaurant operators.
Goldman Sachs on India QSR
Morgan Stanley on Jubilant FoodWorks
Goldman Sachs earlier view of March 11
Goldman Sachs On India QSR
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