Rewrites throughout with background and details

Feb 10 (Reuters) - India's Jubilant FoodWorks JUBI.NS, which operates Domino's Pizza and Dunkin' outlets in the country, reported a 65% jump in third‑quarter profit as strong festive‑season orders helped drive sales, pointing to a recovery in the sector.

The company's profit rose to 709 million rupees ($7.83 million) in the quarter ended December 31, from 429.1 million rupees a year ago.

The October-December quarter is typically the strongest for India's quick‑service restaurant chains as festivals and year‑end holiday demand boost orders, with analysts citing improving demand conditions across the sector.

Revenue from operations, which includes the company's international operations, climbed 13.3% year-on-year to 24.37 billion rupees, supported by higher order volumes.

Jubilant's results included a one-time charge of 337 million rupees tied to India's new labour codes that were enacted in November.

In December, Citi analysts said the sector was likely to be the biggest beneficiary of a consumer demand upcycle, adding that Jubilant's growth initiatives position it for industry-leading performance.

Revenue at its India business rose about 12% from a year earlier, driven by a 5% like‑for‑like sales growth at Domino's, strong double‑digit growth at Popeyes, new menu launches and rapid expansion of its store network.

Jubilant added 114 net stores during the quarter, the most in the last four quarters, expanding its network to 3,594 outlets as it invests to capture demand in both metros and tier-two cities. Analysts have also flagged the scope for margin expansion, with CLSA upgrading the stock last month.

"Our margins at all levels have improved significantly over last year," the company said in its press release, without giving details.

($1 = 90.5630 Indian rupees)

(Reporting by Surbhi Misra and Urvi Dugar in Bengaluru; Editing by Saumyadeb Chakrabarty)

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