Speciality Restaurants reports 17th consecutive profitable quarter, outlines growth plans

Speciality Restaurants Limited has reported its 17th consecutive quarter of profitability, with significant improvements in Q2 FY26. The company achieved same-store sales growth (SSSG) of +1.39%, reversing the previous quarter's -1.31%. Gross margins increased to 70.4% from 69.3% year-on-year, and EBITDA margins on an operational basis improved to 7.1% without considering treasury income. Delivery, largely through aggregator platforms, continues to represent approximately 25% of revenues, with aggregator spends remaining around 5%.

The company is strategically focusing on expanding its Asian cuisine brands, primarily Asia Kitchen by Mainland China, and its new Italian and Mediterranean concept, Siciliana, which recently opened in two malls with another planned for Mumbai. Sweet Bengal and Walter's Burger are key growth drivers in the QSR segment. Capital work in progress reduced significantly from INR 32 crores to INR 13.22 crores due to capitalization of several units, including the Mainland Institute of Oriental Catering in Calcutta.

For the full year, the company anticipates revenue growth, though achieving 15% may be challenging, with current cash on books at INR 157.42 crores invested in mutual funds and INVIT as of September. Speciality Restaurants aims to open 8-10 new restaurants within a 12-month period, prioritizing Oriental and Italian cuisines, while moving away from experimental formats to consolidate existing profitable brands.