New Delhi, May 21 -- Bengaluru,

Mumbai :

India's quick-service restaurants (QSRs) are bracing for a challenging 2026-27 after a weak 2025-26, as rising energy costs stoke inflation and weigh on discretionary spending, pressuring growth and margins.

Looming headwinds and inflationary pressures across energy, labour and commodities could squeeze margins in the coming quarter, said Jubilant FoodWorks Ltd, India's largest QSR operator and franchisee of Domino's Pizza, after reporting its March-quarter and FY26 results on Wednesday.

"We are entering a near-term inflationary environment," said Sameer Khetarpal, managing director and chief executive of Jubilant Foodworks, during the fourth-quarter earnings call.

The remarks reflect a broade...