Speciality Restaurants Limited (SPECIALITY)
₹132.19 +4.11% last close, 23 Oct
Q2 FY27 results
📅 Next results: 03 Nov 2026 (board meeting)Speciality Restaurants Limited's board meets on 3 Nov 2026 to consider its Q2 FY27 results (July-September 2026).
In its latest reported quarter, Q1 FY27, Speciality Restaurants' revenue was ₹127 Cr (+16.8% year on year, +9.1% on the previous quarter), and net profit ₹7.1 Cr (+38.8% year on year); the operating margin was 19.2%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹127 | +16.8% | +9.1% |
| Operating profit | ₹24.4 | +36.4% | +38.9% |
| Net profit | ₹7.1 | +38.8% | +149.5% |
| EPS (₹) | 1.45 | +36.8% | +110.1% |
| Operating margin | 19.2% | — | — |
SPECIALITY exchange data
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📢 Recent Corporate Announcements
Speciality Restaurants Limited has submitted its quarterly compliance certificate under Regulation 74(5) of the SEBI (Depositories and Participants) Regulations, 2018 for the quarter ended September 30, 2026. The certificate from RTA MUFG Intime India confirms that dematerialisation requests received during the period were processed and securities were listed on stock exchanges within prescribed timelines. This is a recurring administrative filing and carries no impact on the company's financial or operational performance.
- Compliance certificate submitted for the quarter ended September 30, 2026
- Issued by Registrar and Share Transfer Agent MUFG Intime India Private Limited on October 03, 2026
- Filing confirms cancellation and mutilation of physical certificates within prescribed timelines
Speciality Restaurants clarified that the Directorate of Enforcement (ED) has issued a Provisional Attachment Order (PAO) attaching ₹14,50,09,700 for a period of 180 days. The sum represents a 25% upfront amount forfeited from certain convertible warrant allottees who failed to pay the remaining 75% balance. The company emphasized that it is not named as an accused and no complaint is filed against it, acting merely as a noticee holding the funds. The attached amount is restricted from normal use, representing approximately 63% of FY26 net profit (₹23 Cr TTM net profit) and 4.2% of net worth (₹347 Cr).
- ED provisionally attached ₹14,50,09,700 held in the company's bank account for 180 days
- Attached funds represent 25% upfront subscription money previously forfeited from non-paying warrant allottees
- Speciality Restaurants is not named as an accused and has no complaint filed against it
- Attached amount equals ~63% of TTM PAT (₹23 Cr) and ~4.2% of Net Worth (₹347 Cr)
Speciality Restaurants Limited announced the launch of a new restaurant brand/outlet named 'SICILIANA' on September 26, 2026. The outlet is situated at Balewadi High Street in Pune, catering to the domestic dining market. With an existing network of around 125 outlets and a plan to add 8-10 restaurants annually, this single-store opening is in line with ongoing expansion goals, though incremental relative to TTM revenue of ₹495 Cr.
- Launched new restaurant format/brand 'SICILIANA' on September 26, 2026
- Located at Unit No. 27, Ground Floor, Balewadi High Street, Pune
- Adds to company's existing footprint of approximately 125 operational outlets
- Targets the domestic Indian dining market
The Directorate of Enforcement (ED), Raipur Zonal Office, has issued a provisional attachment order (PAO) attaching ₹14,50,09,700 from Speciality Restaurants' bank accounts. The attached funds relate to the 25% upfront subscription money previously forfeited by the company after warrant holders failed to pay the remaining 75% within the 18-month conversion period. Speciality Restaurants clarified that it is not named as an accused in the predicate offense or the money laundering investigation, and business operations remain unaffected. The attached amount represents approximately 63% of the company's TTM PAT of ₹23 crore and 4.2% of its net worth of ₹347 crore.
- Enforcement Directorate provisionally attached ₹14,50,09,700 under Section 5(1) of PMLA
- Attachment remains in force for a period of 180 days
- Attached funds represent the 25% upfront amount forfeited from warrant allottees after an 18-month lapse
- Company is not named as an accused in the underlying investigation and is consulting counsel for legal remedies
Speciality Restaurants Limited has scheduled a one-on-one analyst/investor meeting on Tuesday, September 22, 2026, at 2:30 p.m. IST with representatives from Seers Group. The in-person meeting will take place at a restaurant located in Vasant Kunj, New Delhi. The company confirmed that no unpublished price-sensitive information (UPSI) will be shared during the discussion. This is a routine institutional interaction intimation under SEBI LODR Regulation 30(6).
- Meeting scheduled for Tuesday, September 22, 2026, at 2:30 p.m. (IST)
- Interaction is one-to-one with Mr. Chander Bhatia, Mr. Rajesh Seth & Mr. Shaleen Seth of Seers Group
- Venue: Restaurant at Vasant Kunj, New Delhi
- Company confirmed no unpublished price sensitive information (UPSI) will be shared
Speciality Restaurants Limited concluded its 27th Annual General Meeting on September 11, 2026, where shareholders approved all proposed ordinary resolutions with requisite majorities. Key approvals include the adoption of FY26 standalone and consolidated financial statements and a dividend declaration of ₹1.00 (10%) per equity share of face value ₹10. Shareholders also approved the reappointment of retiring directors Mr. Avik Chatterjee and Mr. Aditya Ghosh.
- Declared and approved dividend of ₹1.00 (10%) per equity share of face value ₹10 for FY26
- All 5 ordinary resolutions approved by requisite majority via remote e-voting and AGM voting
- Adoption of audited financial statements for the fiscal year ended March 31, 2026
- Re-appointment of directors Mr. Avik Chatterjee and Mr. Aditya Ghosh approved
Speciality Restaurants Limited has scheduled a one-on-one institutional investor meeting with Nippon AIF on Wednesday, September 09, 2026, at 3:00 PM IST. The interaction will feature Rahul Veera (Fund Manager) and Aashray Vasa (Research Analyst) at Mainland China, Andheri West, Mumbai. The company confirmed that no unpublished price-sensitive information (UPSI) will be discussed.
- One-on-one meeting scheduled for September 09, 2026, at 3:00 p.m. (IST)
- Interaction with Rahul Veera (Fund Manager) and Aashray Vasa (Research Analyst) of Nippon AIF
- Meeting venue at Mainland China, Andheri West, Mumbai
- Company confirmed no unpublished price sensitive information (UPSI) will be shared
Speciality Restaurants Limited has informed the exchanges regarding a scheduled one-on-one meeting with an institutional analyst on Friday, September 04, 2026, at 4:30 p.m. IST. The interaction will take place with Mr. Kalpesh Parekh, Head of Equities at Share India Securities Limited, at the company's corporate office in Andheri West, Mumbai. The company confirmed that no unpublished price sensitive information (UPSI) will be shared during this meeting.
- Meeting scheduled for Friday, September 04, 2026, at 4:30 p.m. (IST)
- One-on-one interaction with Share India Securities Limited
- Meeting venue at corporate office in Andheri West, Mumbai
- Confirmation that no UPSI will be shared during the meet
Speciality Restaurants Limited has announced a scheduled one-on-one virtual analyst meeting with Mr. Aashray Vasa, Equity Research Analyst at Nippon AIF. The meeting is set for Thursday, September 03, 2026, at 4:00 p.m. IST. The company stated that no unpublished price sensitive information (UPSI) will be shared during this interaction. This is a routine institutional interaction under Regulation 30(6) of SEBI LODR.
- One-on-one virtual meeting scheduled with Nippon AIF
- Meeting date and time: Thursday, September 03, 2026, at 4:00 p.m. IST
- Analyst participating: Mr. Aashray Vasa, Equity Research Analyst
- No unpublished price sensitive information (UPSI) to be discussed
Speciality Restaurants Limited announced that its subsidiary, Speciality Hotels India Private Limited (SHIPL), has allotted 65,961 equity shares via a rights issue to Esensos Services and Solutions LLP. The shares, having a face value of ₹100, were issued at a price of ₹838.57 each, aggregating to ₹5.53 crore. Following the allotment, SHIPL's paid-up share capital increased to ₹2.67 crore. Speciality Restaurants' holding in SHIPL now stands at 51.21%, and SHIPL continues to remain a subsidiary.
- Subsidiary SHIPL allotted 65,961 equity shares via rights issue on August 24, 2026
- Shares issued at ₹838.57 per share for a total consideration of ₹5,53,12,916
- SHIPL paid-up share capital increased to ₹2,66,57,600
- Parent Speciality Restaurants retains a 51.21% controlling stake in SHIPL
Speciality Restaurants Limited has scheduled an in-person group analyst and institutional investor meeting on Thursday, August 27, 2026, at 4:00 PM IST. The meeting will be held with Ace Lansdowne Investments Services LLP and Razdan Consulting at the company's Corporate Office in Andheri West, Mumbai. The company confirmed that no unpublished price sensitive information (UPSI) will be shared during the interaction.
- Meeting scheduled for Thursday, August 27, 2026, at 4:00 PM IST
- Participants include Ace Lansdowne Investments Services LLP and Razdan Consulting
- Venue is the Corporate Office at Andheri West, Mumbai
- No unpublished price sensitive information (UPSI) will be shared
Speciality Restaurants Limited has submitted its Business Responsibility and Sustainability Report (BRSR) for FY 2025-26 pursuant to SEBI Listing Regulations. As of FY26, the company operates across 121 domestic locations in 9 states and 3 international locations across 2 countries. Core restaurant operations accounted for 91.22% of total turnover, while confectioneries contributed 8.78%. The company reported a total workforce of 2,570 employees with a permanent employee turnover rate of 27% in FY26.
- Operates across 121 national locations across 9 states and 3 international outlets across 2 countries
- Restaurants and mobile food service activities generated 91.22% of turnover, while confectioneries contributed 8.78%
- Total employee strength stood at 2,570 with a permanent employee turnover rate of 27%
- Resolved 100% of the 76 consumer complaints received during FY 2025-26
Speciality Restaurants Limited has issued the notice for its 27th Annual General Meeting (AGM) to be held on September 11, 2026, via video conferencing. The company has fixed September 4, 2026, as the record date for determining shareholder eligibility for a final dividend of Rs 1 per equity share (10% of face value Rs 10). If approved, the dividend will be disbursed on or after September 14, 2026. Other standard agenda items include the adoption of FY26 financial statements and the re-appointment of retiring directors Mr. Avik Chatterjee and Mr. Aditya Ghosh.
- 27th AGM scheduled for Friday, September 11, 2026, at 4:00 PM IST via VC/OAVM
- Record date for proposed final dividend of Rs 1 per share fixed as September 4, 2026
- Dividend payment scheduled on or after September 14, 2026, subject to shareholder approval
- Re-appointment of directors retiring by rotation: Mr. Avik Chatterjee (WTD & CEO) and Mr. Aditya Ghosh (Non-Executive Director)
Speciality Restaurants reported its 20th consecutive profitable quarter, achieving a Same-Store Sales Growth (SSSG) of 11.35% in Q1 FY27. Gross margins improved by 120 bps to 71.1% through portion management and vendor negotiations, despite inflationary pressures. The company is restructuring into three core verticals: Oriental, Italian, and QSR, with the delivery segment now contributing 29% of total revenue. Management plans to open 15 new stores this year, including 5 Walters Burger outlets, while aiming to maintain a cash balance of approximately ₹162 Cr through internal accruals.
- Achieved 11.35% Same-Store Sales Growth (SSSG) in Q1 FY27 compared to the previous year.
- Gross margins expanded by 1.2% to reach 71.1% through operational efficiencies and vendor negotiations.
- Delivery business has grown to represent 29% of the total revenue portfolio.
- Management plans to open 15 new stores in FY27, including 5 for the Walters Burger brand by year-end.
- Maintained a strong cash position of ₹162 Cr, with capex for expansion expected to be funded by internal cash generation.
Speciality Restaurants has received a Show Cause-cum-Demand Notice from the CGST authorities for the period FY 2021-22 to 2023-24. The notice demands ₹1.80 Cr in unpaid taxes related to Reverse Charge Mechanism (RCM) and Input Tax Credit (ITC) claims, plus an equivalent penalty of ₹1.80 Cr. The total potential liability of ~₹3.61 Cr (excluding interest) represents approximately 17% of the company's TTM PAT of ₹21 Cr. The company is currently evaluating legal remedies with tax advisors.
- Tax demand of ₹1,80,43,529 for short payment under RCM and irregular ITC claims.
- Penalty of ₹1,80,43,529 imposed under Section 74 of the CGST Act, matching the tax demand.
- Assessment period covers three financial years from 2021-22 to 2023-24.
- Total demand (excluding interest) equals ~17.1% of the company's TTM Net Profit of ₹21 Cr.
- Company maintains a cash surplus of ₹157.42 Cr as per latest filings, providing a significant liquidity buffer.
Financial Performance
Revenue Growth by Segment
Overall revenue grew 5% in fiscal 2024 to INR 387 Cr. The Sweet Bengal brand grew 10.2% YoY in Q2 FY26, reaching INR 10.05 Cr compared to INR 9.12 Cr in the previous year. Same-store sales growth (SSSG) turned positive at +1.39% in Q2 FY26 from -1.31% in the prior quarter.
Geographic Revenue Split
The company operates over 125 stores across 10 major Indian cities including Mumbai, Delhi, and Bangalore, with 3 international outlets. A new wholly-owned subsidiary was incorporated in Dubai, UAE, in November 2025 to oversee strategic investments in the Middle East.
Profitability Margins
Gross margins improved to 70.4% in Q2 FY26 from 69.3% YoY and 70.2% sequentially due to favorable inflation. Operating margins have been volatile, ranging from 2.3% to 22.1% over the last five fiscal years, reaching 22.1% in FY23 and 26.5% in 9M FY23.
EBITDA Margin
Operational EBITDA margins improved to 7.1% in Q2 FY26 compared to 6.2% YoY (excluding treasury income). This improvement is driven by increased contributions from renovated restaurants and better cost rationalization.
Capital Expenditure
The company is funding its expansion through internal accruals and a warrant issue of INR 127.23 Cr (of which INR 41.35 Cr was raised initially). Capex is focused on opening 8-10 new restaurants annually and developing a 0.960-acre land parcel in Bhubaneswar.
Credit Rating & Borrowing
CRISIL upgraded the long-term rating to 'CRISIL A-/Stable' from 'BBB+/Positive' and the short-term rating to 'CRISIL A2+'. The company has remained debt-free for the past five fiscal years through 2024.
Operational Drivers
Raw Materials
Food and beverage ingredients (specific commodity names not disclosed) represent the primary cost of goods sold, reflected in the 29.6% raw material cost (inverse of 70.4% gross margin).
Capacity Expansion
Current capacity is approximately 125 outlets. The company plans to expand by 8-10 restaurants every 12 months, focusing on high-street and premium neighborhood locations like Bandra, Mumbai.
Raw Material Costs
Raw material costs are approximately 29.6% of revenue as of Q2 FY26. Favorable inflation led to a 110 basis point YoY improvement in gross margins.
Manufacturing Efficiency
Efficiency is driven by 'each restaurant generating profit' and cost-cutting steps including reduction in employee costs and closure of non-performing units.
Logistics & Distribution
Delivery services account for 25% of total revenue. The company spends approximately 5% of its revenue on aggregator platforms to maintain visibility and steady-state delivery volumes.
Strategic Growth
Expected Growth Rate
10-15%
Growth Strategy
Growth will be achieved through a hub-and-spoke model in Mumbai, opening 8-10 new restaurants annually, and expanding the 'Gong' brand into premium neighborhood locations. The company is also leveraging its new Dubai subsidiary for international strategic investments and has entered a strategic collaboration for land development in Bhubaneswar.
Products & Services
Fine-dining restaurant services, Quick Service Restaurant (QSR) formats, and confectionery products.
Brand Portfolio
Mainland China, Asia Kitchen by Mainland China, Oh! Calcutta, Sweet Bengal, Riyasat, Barishh, Episode One, Hoppipola, Dariole, and Gong.
New Products/Services
Launch of the 'Gong' brand in Bandra (January 2026) and expansion of the 'Sweet Bengal' confectionery line.
Market Expansion
Targeting Mumbai for dense expansion via commissaries and international expansion through the Dubai-based Speciality Restaurants L.L.C-FZ.
Market Share & Ranking
One of the largest fine-dining restaurant chains in India; specific market share % not disclosed.
Strategic Alliances
Strategic Collaboration and Investment Agreement with Esensos Services and Solutions LLP for land development in Bhubaneswar, Orissa.
External Factors
Industry Trends
The industry is seeing a shift toward delivery (25% of SRL revenue) and GST rationalization is creating positive consumer sentiment. The sector is highly fragmented with significant competition from unorganized players.
Competitive Landscape
Intense competition from both organized chains and fragmented unorganized local restaurants.
Competitive Moat
Moat is built on established brand equity (Mainland China, Oh! Calcutta) and a 25-year track record. Sustainability is supported by a debt-free balance sheet and a large cash surplus of INR 157.42 Cr.
Macro Economic Sensitivity
High sensitivity to economic cycles; fine-dining revenue is highly correlated with discretionary spending levels.
Consumer Behavior
Increasing preference for delivery and premium neighborhood dining over traditional mall-based fine dining.
Geopolitical Risks
International operations in Dubai and 3 other international outlets expose the company to regional regulatory and economic shifts.
Regulatory & Governance
Industry Regulations
Operations are subject to food safety standards and local municipal licensing for restaurant operations.
Taxation Policy Impact
GST rationalization in the restaurant sector is cited as a driver for recent 'euphoria' and growth.
Risk Analysis
Key Uncertainties
Volatility in operating margins (historically 2% to 22%) and high fixed cost structures could impact profitability by 10-15% during economic slowdowns.
Geographic Concentration Risk
Heavy concentration in major Indian metros, particularly Mumbai, which is the current focus for the hub-and-spoke expansion.
Third Party Dependencies
25% of revenue depends on third-party delivery aggregators, with a 5% revenue spend on these platforms.
Technology Obsolescence Risk
Risk of falling behind in digital ordering and aggregator platform optimization.
Credit & Counterparty Risk
Strong liquidity with INR 172.79 Cr in cash and equivalents as of March 2024, indicating low counterparty risk.
