QSR Stocks Rally on GST Relief; Jubilant, Devyani and Sapphire Foods Surge

Mumbai, September 4, 2025 – The GST reforms introduced on Wednesday included a decision to slash taxes on bread and paneer-based items to zero, which resulted in pushing the stocks of QSR (Quick Service Restaurants) into a rally. Major stocks, including Jubilant FoodWorks (+2.89%), Devyani International (+2.44%), and Sapphire Foods (0.80%), witnessed rallies and closed higher than the previous day’s close.

The GST reforms include a nil rate for breads (pizza, paratha, Indian breads) from an earlier slab of 5-18%. Besides this, there have been rate cuts on chocolates and cocoa-based foods. The rate on carbonated beverages has been increased, and the products will be taxed at the highest rate (40%).

Stock Performance

Jubilant FoodWorks started in green and went as high as 4.6% intraday but closed at ₹653.20 (2.89% higher) with trading volumes of over 25 lakh shares. The stock touched a day’s high of ₹664.05 compared to its 52-week high of ₹796.75. Devyani International also gained 4.2% intraday before closing 2.44% higher (₹179.49). The trading volume was quite high, with over 81 lakh shares exchanged during the day. Sapphire Foods led the intraday rally, surging 7.6% at one point, but lost its momentum and closed at ₹325.35 (up by 0.68%). The trading volumes were slightly over 21 lakh shares during the day. The day’s high was ₹347.90.

Details of Tax Reliefs

The GST Council, chaired by Finance Minister Nirmala Sitharaman, approved a simplified two-tier structure effective September 22. GST on pizza bread, parathas, and Indian breads has been reduced to nil, while chocolates and cocoa-based products will now attract 5% GST instead of 18%. However, carbonated fruit beverages will face a higher 40% GST, up from 28%. The changes, coinciding with Navratri, aim to rationalize rates and adjust consumer costs across categories.

Market Outlook

The broader market also showed a positive response towards these reforms. Both Nifty 50 and Sensex gained up to 0.80-1.00% intraday but closed only marginally above their closing levels (0.078% and 0.19% respectively).

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