Savera Industries Reports Strong Q1 FY26 Results, Plans Chennai Restaurant Expansion

Savera Industries , a prominent player in the hospitality sector, has reported robust financial results for the first quarter of fiscal year 2026, along with exciting expansion plans in the restaurant business.

Q1 FY26 Financial Highlights

Savera Industries witnessed significant growth in its financial performance for the quarter ended June 30, 2025:

The company's revenue from operations saw a substantial increase of 23.09% year-over-year, rising from ₹1,793.43 lakhs in Q1 FY25 to ₹2,207.53 lakhs in Q1 FY26. The total income for the quarter stood at ₹2,316.73 lakhs, marking a 23.64% growth compared to the same period last year.

Savera Industries reported a remarkable 115.03% surge in profit after tax, which reached ₹574.55 lakhs in Q1 FY26, up from ₹267.20 lakhs in Q1 FY25. This significant increase in profitability was partly attributed to exceptional items amounting to ₹219.33 lakhs, primarily from land sale profits of ₹232.84 lakhs.

The company's earnings per share (EPS) more than doubled, rising to ₹4.82 in Q1 FY26 from ₹2.24 in the corresponding quarter of the previous year.

Expansion into Restaurant Business

In a strategic move to diversify its operations, Savera Industries' Board of Directors has approved the opening of a new restaurant in Thoraipakkam, Chennai. The restaurant will operate under the "Andhra Tiffin Room" brand through a franchise agreement with Amaravathi Restaurants Pvt Ltd.

Key details of the franchise agreement include:

• A monthly royalty of 6% on turnover payable to the brand owner
• Estimated investment of up to ₹60 lakhs for the new venture
• The agreement is classified as a Related Party Transaction, with four promoters of Savera Industries Limited being directors and shareholders in Amaravathi Restaurants Pvt Ltd

This expansion is expected to leverage the brand's existing customer base and market goodwill, potentially boosting the company's revenue and profitability in the restaurant segment.

Dividend Announcement

The Board of Directors has recommended a final dividend of ₹3 per equity share for the financial year ended March 31, 2025, subject to shareholder approval at the upcoming Annual General Meeting.

Management Commentary

Mrs. A. Nina Reddy, Managing Director of Savera Industries Limited, commented on the results, stating, "We are pleased with our strong start to the fiscal year 2026. Our significant growth in revenue and profitability reflects the resilience of our business model and the increasing demand in the hospitality sector. The decision to expand into the restaurant business aligns with our strategy to diversify our revenue streams and capitalize on new growth opportunities."

Savera Industries continues to demonstrate its commitment to growth and shareholder value, as evidenced by its robust financial performance and strategic expansion initiatives. The company's focus on diversification and operational excellence positions it well for sustained growth in the evolving hospitality landscape.

Note: The financial results are subject to limited review by the statutory auditors, and the final dividend is pending shareholder approval.