Speciality Restaurants Limited , a prominent player in the restaurant industry, has announced significant expansion plans through two land development projects. The company's Board of Directors approved these initiatives during a meeting held on September 16, 2025, signaling a strategic move to enhance its real estate portfolio.

West Bengal Project

The first project involves the development of approximately 2.03 acres of land in Durgapur, West Bengal. Speciality Restaurants will partner with Coal Mines Associated Traders Private Limited for this venture. The collaboration aims to leverage the potential of the Durgapur region, known for its industrial growth and increasing urbanization.

Orissa Expansion

The second approved project focuses on developing about 0.96 acres of land in Bhubaneshwar, Orissa. This initiative will be a joint effort involving Speciality Hotels India Private Limited, a wholly-owned subsidiary of Speciality Restaurants, and ESSENOS LLP as the developer. The choice of Bhubaneshwar reflects the company's interest in tapping into the growing urban market of Orissa's capital city.

Regulatory Compliance and Next Steps

Both land development agreements are subject to obtaining necessary approvals from relevant authorities. In compliance with regulatory requirements, Speciality Restaurants has stated that detailed disclosures will be submitted to the stock exchanges upon the signing of the final agreements for these projects.

The company's Board meeting, which commenced at 4:30 p.m. and concluded at 5:00 p.m. on the same day, addressed these expansion plans. This swift decision-making process underscores the company's commitment to growth and strategic development.

Avinash Kinhikar, Company Secretary and Legal Head of Speciality Restaurants Limited, confirmed these developments in an official communication to the BSE Limited and the National Stock Exchange of India Limited.

These land development initiatives mark a significant step for Speciality Restaurants, potentially paving the way for future expansion of its restaurant operations or diversification into real estate development. Stakeholders will be keenly watching for further details as the projects progress through the approval stages and move towards implementation.

Speciality Restaurants Limited , the operator of popular restaurant brands including Mainland China, Asia Kitchen, and Oh! Calcutta, has reported a mixed performance for the first quarter of fiscal year 2026. The company saw a modest growth in total standalone income while facing challenges from the withdrawal of service charges.

Financial Highlights

• Total standalone income grew by 3.04% year-over-year in Q1 FY2026
• Gross margins improved to 70.20% from 69.20% in the previous year
• EBITDA margins on operations increased from 4.50% to 6.20%
• Same-store sales growth was flat to slightly negative
• The company maintains a treasury of INR 163.80 crores

Operational Updates

• Service charges were withdrawn from March 29, 2025, impacting the top line
• The company continues to spend 5% of revenues on aggregator platforms
• Delivery business contributes 24% of total revenue
• 11 cloud kitchen operations are currently in operation

Expansion and New Ventures

• Opened Siciliana by Café Mezzuna, an Italian brand, in Forum Mall, Kolkata
• Launched a pilot Walters Burger store in Andheri West, Mumbai
• Plans to open 7 new Asian restaurants and 2 Italian restaurants in FY2026

Management Outlook

During the Q1 FY2026 earnings call, Mr. Rajesh Mohta, Executive Director - Finance and CFO, provided insights into the company's performance and future plans:

• The company expects business improvement in the September to December period
• Management is working towards achieving 10-15% revenue growth guidance
• New restaurants typically take 3 to 6 months to break even at the restaurant level
• Renovated and converted Mainland China locations have seen 20-30% annual revenue growth
• The company is exploring expansion opportunities in Hyderabad, particularly in mall locations

Mr. Avik Chatterjee, Whole Time Director, highlighted the company's strategy for cloud kitchens and new brand development:

• Speciality Restaurants operates 11 pure cloud kitchen operations across multiple cities
• The new Walters Burger brand has shown potential, with plans to open 3 more locations this quarter
• The company is leveraging existing restaurant spaces to operate dark kitchens for multiple brands, maximizing asset utilization

Despite challenges such as the service charge withdrawal, Speciality Restaurants Limited remains focused on expansion and diversification of its brand portfolio. The company's strong cash position and strategic approach to new restaurant openings and renovations indicate a cautious but growth-oriented outlook for the remainder of FY2026.