Speciality Restaurants Limited reported a robust start to FY27, with consolidated net profit after tax (PAT) surging 38.87% year-on-year to ₹7.11 crore for the quarter ended June 30, 2026. The growth was driven by a 14.66% increase in total income to ₹131.30 crore and an expansion in EBITDA by 21.28% to ₹28.61 crore. Standalone PAT also rose 21.13% to ₹6.88 crore, reflecting improved operating efficiency as profit growth significantly outpaced revenue growth. This performance was underpinned by an 11.35% same-store sales growth (SSSG), indicating strong organic demand across its existing portfolio of restaurants and confectioneries.

The Board of Directors approved the unaudited financial results on August 11, 2026, following a review by the Audit Committee and statutory auditors. Alongside the financial update, the company announced a leadership change with Avik Chatterjee taking charge as Chief Executive Officer in Q1FY27. Chatterjee, who has spent much of his career within the organization, aims to strengthen existing brands and expand into new markets. "We are pleased to report a strong start to FY27," said Anjanmoy Chatterjee, Chairman & Managing Director. "The fact that our profit growth has significantly outpaced revenue growth is particularly encouraging and reflects the progress we are making in improving operating efficiency and profitability."

Financial Performance Breakdown

On a standalone basis, total income rose 15.69% to ₹125.79 crore from ₹108.73 crore in Q1FY26. EBITDA grew 17.56% to ₹27.85 crore. The company’s total comprehensive income stood at ₹6.57 crore standalone and ₹6.73 crore consolidated, up from ₹6.09 crore and ₹6.56 crore respectively in the prior year period.

Strategic Focus and Brand Expansion

Avik Chatterjee highlighted the rapid scaling of the Walters brand, a Quick Service Restaurant (QSR) format launched about a year ago. Walters revenue surged 345% year-on-year to ₹1.56 crore from ₹35 lakh in Q1FY26, now contributing 1.3% of consolidated revenue compared to 0.3% previously. "Walters is a good example of what that looks like in practice," Chatterjee said. "Over the next three quarters, we plan to deepen our presence in Mumbai with a minimum of 12 to 15 new Walters stores, alongside a cloud kitchen to widen our delivery reach."

As of June 30, 2026, Speciality Restaurants operated 73 restaurants, 34 confectionary stores, and 11 cloud kitchens across 11 cities in India. Its international footprint includes two outlets of 'Asia Kitchen by Mainland China' in the UAE, one outlet in Muscat, Oman, and one 'Chourangi' restaurant in London. The company continues to focus on enhancing customer experience, maintaining cost discipline, and pursuing calibrated expansion to build a scalable business.

What the Numbers Show

The divergence between revenue growth (14.66% consolidated) and PAT growth (38.87% consolidated) signals significant operational leverage. EBITDA grew at a faster pace than revenue (21.28% vs 14.66%), suggesting effective cost management and favorable mix shifts. The strong same-store sales growth of 11.35% confirms that the top-line momentum is not solely dependent on new store openings but is driven by healthy consumer demand at existing locations. This organic strength, combined with the high-growth trajectory of newer formats like Walters, positions the company for sustained profitability improvements in subsequent quarters.

Speciality Restaurants posted a notable improvement across key financial metrics in Q1, with consolidated net profit rising to 70M rupees compared to 54M rupees in the year-ago period. The results reflect stronger operational execution, with revenue and profitability both trending upward on a year-on-year basis.

Revenue Growth Drives Top-Line Expansion

The company's consolidated revenue grew to 1.3B rupees in Q1, up from 1.1B rupees in the same quarter of the previous year. The increase in top-line performance underscores improving demand conditions and the company's ability to scale its business operations effectively during the period.

EBITDA and Margin Performance

Operating profitability saw a meaningful uplift, with EBITDA rising to 244M rupees from 179M rupees year-on-year. Alongside the absolute improvement, the EBITDA margin expanded by 275 basis points, moving from 16.42% to 19.17%, indicating better cost efficiency relative to revenues. The following table summarises the key financial metrics for Q1:

Bottom-Line Improvement

Consolidated net profit for Q1 stood at 70M rupees, compared to 54M rupees reported in the corresponding quarter of the prior year. The growth in net profit is consistent with the improvement seen at the operating level, reflecting the positive impact of higher revenues and improved margins flowing through to the bottom line.

Key Highlights

• Net Profit increased to 70M rupees from 54M rupees year-on-year
• EBITDA rose to 244M rupees from 179M rupees year-on-year
• EBITDA Margin expanded to 19.17% from 16.42% year-on-year
• Revenue grew to 1.3B rupees from 1.1B rupees year-on-year

Overall, Speciality Restaurants' Q1 results demonstrate consistent year-on-year growth across revenue, operating profit, and net profit, with margin expansion adding further depth to the performance.